For national energy capacity improvement and CO2 emission reductions, Mongolia has focused its attention on grid-connected residential PV systems. Due to the feed-in tariff (FIT), the aggregated residential PV systems are expected to increase with the PV penetration level. Currently, there is no power injection limitation in Mongolia. A new policy for the PV penetration level of residential PV systems needs to be developed. This study analyzed the techno-economic performances of distributed PV-battery systems, considering PV generation, the historical load demand, and the tariff structure. We studied the performances of 40 combinations of PV sizes (2 kW–9 kW) and battery capacities (4.4 kWh, 6.6 kWh, 10 kWh, 12 kWh, and 15 kWh) to find feasible system sizes. The aggregated PV-battery systems in a low-voltage (LV) distribution system located in Ulaanbaatar, Mongolia, are also discussed. The results show that six combinations satisfied the technical and economic requirements. The maximum profit was determined to be an NPV of 1650 USD with a 9-year payback period using combination 3 (6 kW PV and 6.6 kWh battery capacity). Combination 6 (8 kW PV and 15 kWh battery capacity) shows that the energy management strategy for residential houses with battery storage has the potential to increase the installed capacity of PV systems without voltage violence in the LV network. For the distributed PV-battery storage system (BSS), the environmental analysis indicates that CO2 and SO2 emissions were reduced by 3929 t/year and 49 t/year, respectively. The findings obtained from this analysis will be used for power system planning.