A solar energy storage system based on metal hydrides was proposed in this paper. The numerical simulation of processes of energy storage and thermal release were carried out. The dynamic behavior of heat and mass transfer in the metal hydride energy system were reported. Some factors which influence the whole system performance were discussed. The paper also made an economic analysis of the system, the results proved that the large amounts of metal hydride materials and the configurations of metal hydrides energy storage system involve a critical situation from an economical point of view. Then further analysis, particularly regarding the performance optimization and new plant arrangement of the metal hydrides energy storage system, has to be developed in order to attain the economical feasibility of the proposal.