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This paper presents the use of a second life battery pack in a smart grid-tied photovoltaic battery energy system. The system was developed for a single family household integrating a PV array, second life battery pack, grid back feeding, and plug-in hybrid electric vehicle charging station. The battery pack was assembled using retired vehicle traction batteries. The pack is configured with 9 cells in each parallel bank, 15 banks in series featuring 48V nominal and a 12kWh nominal capacity. Limited by the weakest bank in the pack, the second life battery pack has an accessible capacity of 10kWh, or 58% of its original condition. A battery management was developed to handle the bank-to-bank imbalance and ensure the safe operation of the battery pack. An energy management algorithm was established to optimize the energy harvest from PV while minimizing the grid dependence.