Abstract For stand-alone applications, environment-friendly hybrid solar photovoltaic and wind renewable energy resources seems to be promising solutions. However, owing to the intermittency and unpredictability of renewable generation sources, battery banks are generally employed to meet the demand at all time. This paper presents a demand response model to optimize the battery bank size of standalone system. The objective of this framework is to optimize the battery storage for balancing the load demand and fluctuating renewable generation. Case studies are conducted on standalone system of a remote un-electrified household in Finland covering four seasons. The simulation results suggested that activation of demand response will optimize the battery bank capacity.