Rooftop photovoltaic systems integrated with lithium-ion battery storage are a promising route for the decarbonisation of the UK’s power sector. From a consumer perspective, the financial benefits of lower utility costs and the potential of a financial return through providing grid services is a strong incentive to invest in PV-battery systems. Although battery storage is generally considered an effective means for reducing the energy mismatch between photovoltaic supply and building demand, it remains unclear when and under which conditions battery storage can be profitably operated within residential photovoltaic systems. This fact is particularly pertinent when battery degradation is considered within the decision framework. In this work, a commercially available coupled photovoltaic lithium-ion battery system is installed within a mid-sized UK family home. Photovoltaic energy generation and household electricity demand is recorded for more than one year. A comprehensive battery degradation model based on long-term ageing data collected from more than fifty long-term degradation experiments on commercial Lithium-ion batteries is developed. The comprehensive model accounts for all established modes of degradation including calendar ageing, capacity throughput, ambient temperature, state of charge, depth of discharge and current rate. The model is validated using cycling data and exhibited an average maximum transient error of 7.4% in capacity loss estimates and 7.3% in resistance rise estimates for over a year of cycling. The battery ageing model is used to estimate the cost of battery degradation associated with cycling the battery according to the power profile logged from the residential property. A detailed cost-benefit analysis using the data collected from the property and the battery degradation model shows that, in terms of utility savings and export revenue, the integration of a battery yields no added benefit. This result was, in-part, attributed to the relatively basic control strategy and efficiency of the system. Furthermore, when the cost of battery degradation is included, the homeowner is subject to a significant financial loss.