Distributed energy systems (DES) is energy efficient due to energy cascade utilization and integration with local renewable energy resources. Thermal energy storage systems (TESs) can supplement the DES to improve the system performance. In this study, a control strategy is proposed for the DES&TES considering the state of the TES to improve the surplus energy utilization, the system energy and economic performance especially during transition season. The operation of the power generator is determined by the electrical load, the state of the TES and the time-of-use tariff. In addition to the following the electrical load strategy, the generator is shut down when the TES is full and starts until the TES is discharged completely. The proposed strategy is tested under two tariffs. Results show that the proposed strategy can improve the surplus energy utilization rate and the primary energy efficiency of the DES by 29.2 % and 2.9 % compared with following the electricity load strategy. The payback period of the TES can be decreased to 1.9 years. In addition, the performance deviation resulting from the dynamic and static TES models shows that the dynamic model should be employed because the static model can over-estimate nearly 40 % of surplus energy utilization rate.