The price of PV panels and batteries are declining rapidly. New technologies are emerging in power systems for energy management. These recent prospects have triggered the question, whether installing PV panels coupled with batteries for a residential load is economical?. In this manuscript, a decision support algorithm is developed for determining the feasibility of installing the PV-battery hybrid system for grid-connected residential loads. An objective function based technique is also introduced for optimal sizing of rooftop PV panels and battery for grid-connected systems under dynamic pricing. Further, generation on load side will also decrease the burden on the grid. Results for sizing the hybrid system for a residential load is presented. Sensitivity analysis is carried out over PV panels, battery, and grid prices. Results suggest that the size of components and savings from system decreases with increase in PV and battery unit prices. It is more economical to install the system when grid prices are higher. © 2018 IEEE.