A smart home requires energy management systems to operate optimally. It has an integrated renewable energy source along with a storage system. The output of the renewable energy source cannot be controlled. The ESS is optimally scheduled for charging and discharging in order to derive the maximum utilization of it. Optimal scheduling of battery integrated smart home is proposed in this paper to minimize the energy costs for a given set of daily electricity tariffs scheme. The sizing of the battery installed in a prosumer system is investigated. An SHEMS is modelled, and an appropriate objective function is defined to reflect the operational costs of a prosumer. The battery efficiency is related to the applied tariff for deciding the operational characteristics of the storage system. The optimal control of the battery operation is then proposed considering its constraints. The sensitivity analysis is performed on the battery to observe its performance in different conditions. The results show the effectiveness of the proposed algorithm to reduce the operational costs of the smart home.