Construction of power plants and T&D facilities is so difficult because of the civil complaints and the additional cost according to the concerning field conditions. Therefore, various researches and methods have been considered to get solutions in the demand side and energy storage systems have been in the spotlight because of the various functions such as peak shaving, load shifting, and power system stabilizing, and so on. Residential small size batteries are considered in this paper and the economic analysis is carried out to evaluate the reasonable subsidy levels for the deployment of energy storage systems. Various economic parties are considered to find reasonable subsidy level comparing each other, which parties consist of utilities, participants and non-participants in general. The evaluation is based on California Standard Practice Test and the results are able to be used as subsidy guidelines.