Renewable energy systems coupled with the domestic battery storage are becoming more and more necessary for sustainable energy solutions. Despite this, the thermal management of lithium ion (Li ion) battery packs is a major issue due to temperature sensitivity. Thermal regulation is critical, and by doing so they can effectively optimize performance, safety, and longevity, which includes passion for burning holes through in the search of an innovative cooling strategy. This thesis attempts to examine the role phase change materials (PCMs) play in improving thermal stability of domestic battery packs. The passive cooling method offers by PCMs is based on the fact that they are able to absorb and lose heat by means of their phase transitions, and thus decrease risks of temperature fluctuations. This research focuses on thermal challenges of Li ion batteries at extreme temperatures in the off nominal temperature range resulting in increased internal resistance and reduced power output, potentially resulting in thermal run away. Active cooling systems like liquid cooling are compared with the passive PCM based solutions. Recently developed PCM integration methods, including composite materials that enhance thermal conductivity and thermal conductivity cooling, are reviewed in the study as well. Experimental studies together with computational simulations show that PCMs effectively reduces peak temperature of the battery and maintains uniform heat distribution across cells of the battery. Traditional PCMs have limitations in thermal conductivity but by incorporating such additives as expanded graphite or a metal foam the performance is considerably improved. It is also demonstrated that hybrid systems that combine PCMs with active cooling methods will prove useful for thermal regulation. It presents the opportunity for PCMs to be a viable, and energy efficient, thermal management solution for domestic battery storage. The future work could aim to optimize the PCM material properties, include the hybrid cooling strategies, and progress with the real time monitoring technologies in order to improve the battery performance and reliability in renewable energy applications.