As the energy storage system in the island stand-alone microgrid can coordinate load and stabilize fluctuation,only suitable energy storage technology can fully reflect its value and role. First,the mainstream type of energy storage technology is dealt with. According to the characteristics of the island stand-alone microgrid,suitable energy storage types for the island stand-alone microgrid are analyzed from a technical and cost perspective. Then,the optimal allocation model of energy storage systems in the island stand-alone microgrid is analyzed. The economy of energy storage technology is discussed from the point of view of unit power cost and unit energy cost,and mainly the performance of lead-acid battery and LiFePO 4 battery is treated and compared. Finally,the commercial operation mode of energy storage technology in the island stand-alone microgrid is discussed and ways of subsidizing different energy storage technologies are recommended.