Nissan has announced the xStorage, which the company claims as the most reliable and affordable home energy storage system in the market.

The idea of home battery storage is to save money by charging electricals at off-peak rates and using them when energy costs are higher.

Nissan has developed xStorage in collaboration with power management company Eaton. xStorage could be an answer to Tesla's Powerwall and other similar products available in the market.

"Powerwall is a home battery that charges using electricity generated from solar panels, or when utility rates are low, and powers your home in the evening. It also fortifies your home against power outages by providing a backup electricity supply. Automated, compact and simple to install, Powerwall offers independence from the utility grid and the security of an emergency backup," says Tesla.

In May, Tesla announced its financial results for the first quarter ending March 31. During the earnings call, Tesla CEO Elon Musk revealed that the company has received orders for 38,000 units of Powerwalls. Due to the overwhelming response, the Powerwall is sold out until mid-2016, which highlights the demand for home battery storage systems.

Nissan is distinguishing itself from rivals by using old electric vehicle (EV) batteries in the new xStorage unit. This concept makes the Nissan's offering a more environmentally friendly system than those of its competitors.

"Providing a sustainable 'second life' for Nissan's electric vehicle (EV) batteries after their first life in cars is over, the new unit is powered by 12 Nissan EV battery modules and has the potential to revolutionize the way people manage energy usage in their own home, providing added flexibility and multiple cost savings," says Nissan.

The xStorage is scheduled to be made available in the UK in September at a price tag of £3,200, or about $4,600, which customers may find dearer than the Tesla Powerwall. However, the price of the xStorage is inclusive of installation, converters and cabling, which makes it cheaper than the Powerwall.

Cyrille Brisson, the vice president of marketing at Eaton Electrical, says that the company's policy is to reduce total cost of ownership and also avoid any hidden costs. Given the reduced price of the battery system, the xStorage may give stiff competition to the likes of the Tesla Powerwall.

Nissan says that the xStorage can also be used as a backup in case of a power failure.

Initially, Nissan does not have plans to introduce the xStorage in the United States. The company has not revealed from where the xStorage system will be made available, but Nissan plans to install more than 100,000 units in the next five years.