A new home energy storage system (HESS) configuration using lithium-ion batteries is proposed in this article. The proposed configuration improves the lifetime of the energy storage devices. The batteries in this system can be charged by either using solar panels when solar energy is available or by using the grid power when the electricity cost is at its lowest rate during off-peak hours. In the proposed configuration, the battery bank is split into two sections, and the pulsed charge-discharge method is employed. This method helps to prolong the life of the lithium-ion batteries while maximizing the solar energy utilization that leads to reduce the consumer's total energy cost. In order to demonstrate the benefits of the proposed method, different modes of operation are discussed in detail along with the simulation results. A prototype was developed to demonstrate the performance of the proposed system experimentally.