Integration of solar photovoltaic (PV) and battery storage systems is an upward trend for residential sector to achieve major targets like minimizing the electricity bill, grid dependency, emission and so forth. In recent years, there has been a rapid deployment of PV and battery installation in residential sector. In this regard, optimal planning of PV-battery systems is a critical issue for the designers, consumers, and network operators due to high number of. Integration of solar photovoltaic (PV) and battery storage systems is an upward trend for residential sector to achieve major targets like minimizing the electricity bill, grid dependency, emission and so forth. In recent years, there has been a rapid deployment of PV and battery installation in residential sector. In this regard, optimal planning of PV-battery systems is a critical issue for the designers, consumers, and network operators due to high number of parameters that can affect the optimization problem. This paper aims to present a comprehensive and critical review on the effective parameters in optimal planning process of solar PV and battery storage system for grid-connected residential sector. The key parameters in process of optimal planning for PV-battery system are recognized and explained. These parameters are economic and technical data, objective functions, energy management systems, design constraints, optimization algorithms, and electricity pricing programs. A timely review on the state-of-the-art studies in PV-battery optimal planning is presented. The challenges, trends and latest developments in the topic are discussed. At the end, scopes for future studies are developed. It is found that new guidelines should be provided for the customers based on various electricity rates and demand response programs. Also, several design considerations like grid dependency and resiliency need further investigation in the optimal planning of PV-battery systems.••A timely survey on the state-of-the-art in optimal planning of PV-battery for grid-connected residential sector (GCRS).••A classification of existing studies on optimal planning of PV-battery for GCRS.••A review of the latest research developments on optimal planning of PV-battery for GCRS.••Recent challenges for optimal planning problem of PV-battery for GCRS.••An. Battery energy storageSolar photovoltaicOptimal planningGrid-connected residential sectorElectricity demand is increasing in the global market. Fig. 1 shows the global electricity demand by regions from 2000 to 2018. The electricity demand was increased by about 72% from 2000 to 2018 in which the annual growth was around 4%. The global electricity demand at the end of 2018 was more than 23,000 TWh. Most of the electricity demand growth is observed in China and the other developing countries. This is the result of industrialization development, boosting of the human comfort level, and population increment. As the electricity demand grows, the fossil fuels are decreasing in a way that they may not last for more than a few decades. Furthermore, the cost of petroleum products is rising. Therefore, the request for renewable energies as prominent alternatives for fossil fuels is increasing rapidly in the world.Renewable energies are valuable sources in terms of sustainability since they can reduce the green-house gases worldwide. In addition, the falling cost of renewable energies such as solar photovoltaic (PV) has made them an attractive source of electricity generation. Solar PVs take advantages of absence of rotating parts, convenient accommodation in rooftops, and less maintenance cost. Fig. 2 illustrates the global solar PV capacity and its annual addition. The total worldwide PV generation capacity exceeded 625 GW at the end of 2019 compared to only 23 GW at 10 years earlier. The annual a. A general schematic diagram of a GCRS with solar PV and BES is demonstrated in Fig. 4. The role of energy management system is to monitor and control the energy flow between the PV, BES, grid and GCRS based on the data from forecasting, smart meter, and available loads for demand response. The effective parameters on optimal planning of PV-battery.