This paper describes the concept for augmenting the SEGIS Program (an industry-led effort to greatly enhance the utility of distributed PV systems) with energy storage in residential and small commercial applications (SEGIS-ES). The goal of SEGIS-ES is to develop electrical energy storage components and systems specifically designed and optimized for grid-tied PV applications. This report describes the scope of the proposed SEGIS-ES Program and why it will be necessary to integrate energy storage with PV systems as PVgenerated energy becomes more prevalent on the nation's utility grid. It also discusses the applications for which energy storage is most suited and for which it will provide the greatest economic and operational benefits to customers and utilities. Included is a detailed summary of the various storage technologies available, comparisons of their relative costs and development status, and a summary of key R&D needs for PV-storage systems. The report concludes with highlights of areas where further PV-specific R&D is needed and offers recommendations about how to proceed with their development.