Energy Storage not only plays an important role in conservinq the energy but also improves the performance and reliability of a wide range of energy systems. Energy storagp. leads to saving of premium fuels and makes the system morA cost effective by reducing the wastage of energy. In most systems there is a mismatch between the energy supply and energy demand. The energy storage can even out this imbalance and thereby help in savings of capital costs. Enerqy storage is all the more important where the enerqy source is intermittent such as Solar Energy. The use of jntermittent energy sources is likely to grow. If more and more solar energy is to be used for domestic and industrial applications then energy storage is very crucial. If no storage is used in solar energy systems then the major part of the energy demand will be met by the back-up or auxiliary energy and therefore the so called annual solar load fract]on will be very low. In case of solar energy, both short term and long term energy storage systems can be used whjch can adjust the phase difference between solar energy supply and energy demand and can match seasonal demands to the solar availability respectively. Thermal energy storage can lead to capital cost savings, fuel savjngs, and fuel substitution in many application areas. Developing an optimum thermal storaqe system is as important an area of research as developinq an alternative source of energy.