This paper analyses the potential of distributed storage to mitigate impacts of embedded PV generation on the distribution grid by improving local balance between generation and demand, thereby enabling higher levels of PV penetration. In particular it looks at the potential of storage to: 1. reduce impacts on power flows due to local supply and demand imbalances driven by PV deployment within the UK domestic and non-domestic markets; 2. of improving PV capacity credit, i.e. the contribution of installed PV to meeting electricity demand within the UK electricity system. Results highlight how, under current levels of deployment, PV generation does not create major problems for the local distribution network, but that storage might play a relevant role for higher levels of PV deployment across the UK. The paper contribute to academic debate in the field by providing a novel locally disaggregated framework for the analysis of embedded PV generation integration into the distribution grid. It also provides a useful tool for network operators, regulators and policy makers.