diff --git a/homeassistant/const.py b/homeassistant/const.py
index 77e540cd76f..bcf81cbcde6 100644
--- a/homeassistant/const.py
+++ b/homeassistant/const.py
@@ -33,6 +33,7 @@ CONF_ACCESS_TOKEN = "access_token"
 CONF_FILENAME = "filename"
 CONF_MONITORED_CONDITIONS = 'monitored_conditions'
 CONF_OPTIMISTIC = 'optimistic'
+CONF_ENTITY_NAMESPACE = "entity_namespace"
 CONF_SCAN_INTERVAL = "scan_interval"
 CONF_VALUE_TEMPLATE = "value_template"
 
diff --git a/homeassistant/helpers/entity.py b/homeassistant/helpers/entity.py
index 6434c23f807..423a276f11a 100644
--- a/homeassistant/helpers/entity.py
+++ b/homeassistant/helpers/entity.py
@@ -27,7 +27,7 @@ def generate_entity_id(entity_id_format, name, current_ids=None, hass=None):
         current_ids = hass.states.entity_ids()
 
     return ensure_unique_string(
-        entity_id_format.format(slugify(name.lower())), current_ids)
+        entity_id_format.format(slugify(name)), current_ids)
 
 
 def split_entity_id(entity_id):
diff --git a/homeassistant/helpers/entity_component.py b/homeassistant/helpers/entity_component.py
index 43d6e435509..3ce72e62835 100644
--- a/homeassistant/helpers/entity_component.py
+++ b/homeassistant/helpers/entity_component.py
@@ -3,7 +3,9 @@ from threading import Lock
 
 from homeassistant.bootstrap import prepare_setup_platform
 from homeassistant.components import discovery, group
-from homeassistant.const import ATTR_ENTITY_ID, CONF_SCAN_INTERVAL
+from homeassistant.const import (
+    ATTR_ENTITY_ID, CONF_SCAN_INTERVAL, CONF_ENTITY_NAMESPACE,
+    DEVICE_DEFAULT_NAME)
 from homeassistant.helpers import config_per_platform
 from homeassistant.helpers.entity import generate_entity_id
 from homeassistant.helpers.event import track_utc_time_change
@@ -37,8 +39,8 @@ class EntityComponent(object):
         self.config = None
         self.lock = Lock()
 
-        self.add_entities = EntityPlatform(self,
-                                           self.scan_interval).add_entities
+        self.add_entities = EntityPlatform(self, self.scan_interval,
+                                           None).add_entities
 
     def setup(self, config):
         """Set up a full entity component.
@@ -86,11 +88,13 @@ class EntityComponent(object):
         scan_interval = platform_config.get(
             CONF_SCAN_INTERVAL,
             getattr(platform, 'SCAN_INTERVAL', self.scan_interval))
+        entity_namespace = platform_config.get(CONF_ENTITY_NAMESPACE)
 
         try:
             platform.setup_platform(
                 self.hass, platform_config,
-                EntityPlatform(self, scan_interval).add_entities,
+                EntityPlatform(self, scan_interval,
+                               entity_namespace).add_entities,
                 discovery_info)
 
             self.hass.config.components.append(
@@ -99,7 +103,7 @@ class EntityComponent(object):
             self.logger.exception(
                 'Error while setting up platform %s', platform_type)
 
-    def add_entity(self, entity):
+    def add_entity(self, entity, platform=None):
         """Add entity to component."""
         if entity is None or entity in self.entities.values():
             return False
@@ -107,8 +111,14 @@ class EntityComponent(object):
         entity.hass = self.hass
 
         if getattr(entity, 'entity_id', None) is None:
+            object_id = entity.name or DEVICE_DEFAULT_NAME
+
+            if platform is not None and platform.entity_namespace is not None:
+                object_id = '{} {}'.format(platform.entity_namespace,
+                                           object_id)
+
             entity.entity_id = generate_entity_id(
-                self.entity_id_format, entity.name,
+                self.entity_id_format, object_id,
                 self.entities.keys())
 
         self.entities[entity.entity_id] = entity
@@ -130,10 +140,11 @@ class EntityPlatform(object):
     """Keep track of entities for a single platform."""
 
     # pylint: disable=too-few-public-methods
-    def __init__(self, component, scan_interval):
+    def __init__(self, component, scan_interval, entity_namespace):
         """Initalize the entity platform."""
         self.component = component
         self.scan_interval = scan_interval
+        self.entity_namespace = entity_namespace
         self.platform_entities = []
         self.is_polling = False
 
@@ -141,7 +152,7 @@ class EntityPlatform(object):
         """Add entities for a single platform."""
         with self.component.lock:
             for entity in new_entities:
-                if self.component.add_entity(entity):
+                if self.component.add_entity(entity, self):
                     self.platform_entities.append(entity)
 
             self.component.update_group()
diff --git a/tests/helpers/test_entity_component.py b/tests/helpers/test_entity_component.py
index 702d05f9a9d..0b4b852d397 100644
--- a/tests/helpers/test_entity_component.py
+++ b/tests/helpers/test_entity_component.py
@@ -290,3 +290,28 @@ class TestHelpersEntityComponent(unittest.TestCase):
 
         assert mock_track.called
         assert [0, 30] == list(mock_track.call_args[1]['second'])
+
+    def test_set_entity_namespace_via_config(self):
+        """Test setting an entity namespace."""
+        def platform_setup(hass, config, add_devices, discovery_info=None):
+            """Test the platform setup."""
+            add_devices([
+                EntityTest(name='beer'),
+                EntityTest(name=None),
+            ])
+
+        platform = MockPlatform(platform_setup)
+
+        loader.set_component('test_domain.platform', platform)
+
+        component = EntityComponent(_LOGGER, DOMAIN, self.hass)
+
+        component.setup({
+            DOMAIN: {
+                'platform': 'platform',
+                'entity_namespace': 'yummy'
+            }
+        })
+
+        assert sorted(self.hass.states.entity_ids()) == \
+            ['test_domain.yummy_beer', 'test_domain.yummy_unnamed_device']