As energy costs continue to increase and climate change concerns mount, more companies are looking for ways

to control their energy use. They

can do this by installing Behind-the-Meter systems – technologies and infrastructure located on the customer’s side of the utility meter. From solar
panels to battery storage units, behind-the-meter systems allow users to generate their own energy, store it for later use, and manage their
consumption more effectively and efficiently.

This article will explore what behind-the-meter means, how behind-the-meter differs from front-of-the-meter, examples of the different technologies
used, and the benefits that behind-the-meter solutions can provide.

BEHIND-THE-METER
Behind-the-meter (BTM) refers to the energy systems located on the customer’s side of the utility meter. These systems could include solar panels,
battery storage, or energy-efficient appliances. The energy produced or stored in these systems is used primarily for the building’s own
consumption, reducing the electricity needed from the grid and lowering the electricity bill. In many cases, excess energy generated by behind-the-
meter systems can be sold back to the grid, providing an additional source of income or energy credits for the customer.

FRONT-OF-THE-METER
On the other hand, Front-of-the-Meter (FTM) systems are on the utility side of the meter. Front-of-the-meter typically includes large-scale energy
generation and storage facilities like power plants, wind farms, solar parks, and large-scale energy storage systems. The energy produced or stored
in these systems is used to supply the grid and distributed to various customers – residential, commercial, or industrial. Front-of-the-meter
resources play a significant role in grid stabilization and management, helping to balance supply and demand, ensuring the reliability of energy
supply, and increasingly supporting the integration of renewable energy sources into the grid.

BEHIND-THE-METER VS. FRONT-OF-THE-METER

While behind-the-meter and front-of-the-meter systems are integral parts of the energy mix, they serve different roles and impact energy users
differently. Behind-the-meter systems allow customers to take control of their energy generation and use, offering potential cost savings and
increased resilience. Front-of-the-meter systems, meanwhile, are vital for overall energy supply and grid stability; these systems are more critical
than ever as we transition towards more renewable energy sources.

EXAMPLES OF BEHIND-THE-METER-SYSTEMS
Solar Photovoltaic (PV) Systems: Solar PV systems convert sunlight directly into electricity using semiconducting materials. They’re used to generate
clean, renewable energy, reducing reliance on power from the grid and lowering energy bills. They’re popular due to their scalability – they can be
installed on residential rooftops or deployed on a larger scale in commercial settings.

Battery Energy Storage Systems: Battery storage systems, such as those offered by EVESCO, store excess energy for use at a later time. They are
particularly beneficial when paired with solar PV – surplus energy generated during the day can be stored and used in the evening or during power
outages. This utilization of energy storage improves energy self-sufficiency. It helps manage demand and lower costs using stored energy during peak
price periods.

Wind Turbines: Wind turbines can be installed at locations to generate electricity from the wind, a plentiful and renewable resource. Like solar PV
systems, these units can provide electricity directly to homes, businesses, or devices not connected to the grid. They’re particularly beneficial when
combined with energy storage in rural or remote areas with strong and consistent wind resources.

Combined Heat and Power (CHP) Systems: CHP, often called cogeneration, simultaneously generates electricity and usable heat from the same energy
source, usually natural gas. CHP systems are an efficient way to use energy as it captures the heat that would otherwise be wasted in electricity
generation. CHP systems are used in commercial and industrial locations with constant demand for electricity and thermal energy.

Electric Vehicle (EV) Charging Stations: EV charging stations can be considered a behind-the-meter system when connected to renewables and energy
storage. They draw their power from the energy storage system to charge electric vehicles, often recharging the energy storage system during off-peak
times or when there’s excess generation from renewable sources. Combining a commercial EV charging station with renewables and energy storage can
reduce grid demand, lowers energy costs, and optimizes energy use.

Energy Management Systems (EMS): While not a source of power generation, an EMS is a crucial behind-the-meter system that uses software and
technology to monitor, control, and optimize the performance of energy-generating and energy-using devices. EMS solutions can manage when and how
energy is used, taking advantage of periods of low demand or high generation to maximize efficiency and minimize costs. More and more EMS’ utilize
artificial intelligence to forecast energy demand, further optimizing energy usage.

Fuel Cells: Fuel cells generate electrical energy through a chemical reaction, often involving hydrogen. They are highly efficient and produce fewer
emissions than traditional combustion-based power generation. While fuel cell systems can still be more expensive than other solutions, they are
becoming increasingly viable as costs become lower and they are used in broader sustainability and resilience strategies.

Microgrids: A microgrid is a localized energy grid that can operate independently of the primary utility grid. It typically involves multiple energy generation
sources, such as solar PV, wind, fuel cells, or generators, combined with energy storage and may serve a single building or a larger community.
Microgrids provide energy security, resilience, and grid independence, allowing users to maintain power during outages and potentially sell excess
capacity back to the grid.

Geothermal Systems: Geothermal systems harness heat from beneath the Earth’s surface to provide heating, cooling, and in some cases, electricity.
While these systems require substantial upfront investment and depend on geographical location, they can offer considerable long-term savings and
environmental benefits.

Demand Response Systems: Although not a power generation system, demand response is crucial in behind-the-meter energy management. These
systems enable users to respond to utility signals to decrease energy consumption during peak times, resulting in cost savings and helping maintain grid
stability. Large energy consumers can take advantage of financial incentives from utility companies for participating in demand response programs.

Smart Appliances: These devices, ranging from HVAC systems to refrigerators, are designed to optimize their energy use according to the user’s needs
and available energy. They can be programmed to operate at times of lower energy cost or high renewable energy generation. With the addition of energy
storage, users can further minimize energy costs and improve efficiency.

These are just a few examples of the technologies and systems that fall under behind-the-meter solutions. The specific choice of solution will
depend on various factors such as the user’s energy needs, available resources, geographical location, and financial capacity. However, regardless
of the specific technology employed, the ultimate goal of behind-the-meter systems is to optimize energy use, reduce costs, support the grid, and
contribute to a more sustainable and resilient energy future.

EXAMPLES OF FRONT-OF-THE-METER SYSTEMS

Utility-Scale Solar Farms: These large-scale installations of solar panels generate considerable amounts of electricity that feed directly into the grid.
They’re typically located in areas with high levels of solar and contribute to a clean, renewable energy supply.

Wind Farms: Wind farms consist of multiple wind turbines that convert wind energy into electricity on a large scale. The electricity generated is fed into
the grid, supplying power to homes, businesses, and industries. Wind farms are a crucial part of many countries renewable energy infrastructure.

Hydropower Plants: Hydropower plants harness the energy created from falling or flowing water to generate electricity. They are often located at dams or
rivers and can supply large amounts of renewable energy to the grid.

Natural Gas Power Plants: These power plants generate electricity by burning natural gas, which is less carbon-intensive than coal or oil. These plants
are seen to serve as a bridge technology in transitioning to a fully renewable grid, offering flexibility and reliability.

Large-Scale Energy Storage: These systems, such as utility-scale battery storage or pumped hydro storage, store excess energy and release it when
demand on the grid is high or the energy supply is low. They are crucial for grid stability and for integrating intermittent renewable energy sources like
wind and solar. These systems will require stringent quality certification, such as UL-9540.

Nuclear Power Plants: Nuclear power plants generate electricity through nuclear fission. While they are highly controversial due to issues like waste
disposal and potential accidents, they also provide a pivotal portion of base-load power in many countries and create virtually no greenhouse gas
emissions.
 sustainability.

Regulatory Compliance: In some countries and regions, regulations or incentives might encourage or require adopting renewable energy or energy
efficiency measures. By deploying behind-the-meter systems, companies can comply with these regulations and take advantage of incentives, such as
tax credits or rebates.

Improved Power Quality: Some behind-the-meter systems can improve the power quality in a facility, reducing voltage dips, swells, and interruptions that
can affect sensitive equipment. Improving power quality can be particularly beneficial in industries where power quality is critical such as manufacturing.

Load Management: Behind-the-meter energy management systems can help companies understand and manage their energy use more effectively. They
can shift their load to off-peak times, participate in demand response programs, and optimize their energy use based on real-time data, further reducing
costs and improving efficiency.

Commercial and industrial energy users can invest strategically in behind-the-meter systems and take advantage of these benefits. Not only can
these systems offer financial advantages and resilience, but they can also support sustainability goals as part of a Corporate Social Responsibility
program.

The choice of the right behind-the-meter asset will depend on each organization’s specific circumstances and needs. It could be a solar PV system
for a company with ample roof space and a commitment to sustainability, a battery storage system for a company with high demand charges
caused by EV charging and a need for resilience, or a combination of these and more. Regardless of the choice, these assets represent an
opportunity to minimize energy costs, improve sustainability, and enhance energy independence.

BEHIND-THE-METER-PROJECTS
Several well-known companies have successfully implemented behind-the-meter systems and are reaping substantial benefits. Here are a few
compelling examples:

Apple: Apple’s headquarters in California, known as Apple Park, features one of the world’s largest on-site solar energy installations. It includes 17
megawatts of rooftop solar and 4 megawatts of biogas fuel cells. Apple has also installed on-site battery energy storage to store excess power. The
company states that globally they are powered entirely by renewable energy.

Walmart: The retail giant has installed solar panels and wind turbines as part of its commitment to power its global operations with 100% renewable
energy by 2035. Solar panels help cut energy costs and move the company closer to its environmental goals. Walmart has also actively participated in
demand response programs for many years. It works with utilities and demand response providers to curtail its energy usage during high grid demand,
helping stabilize the grid and earning financial incentives.

IKEA: IKEA has installed solar panels on several retail location rooftops globally to reach the goal of 100% renewable energy for IKEA retail, its renewable
electricity share was 76% in 2022. The solar installations and other initiatives, which include wind turbines, allow IKEA to strive towards its 2030 goal of
becoming ‘climate positive.’

Mars Inc.: The food and candy manufacturer has installed wind turbines and solar farms at many of its locations worldwide. Mars’ U.S. operations are
entirely powered by renewable energy, with a major part coming from its Mesquite Creek wind farm in Texas.

These companies and many more have seen substantial energy cost savings and made meaningful strides toward their sustainability goals. By
generating their own power, they’ve also increased their energy independence, lessened their environmental footprint, and demonstrated leadership
in transitioning to a more sustainable future.

Categories: Blog, Evesco

Battery Energy Storage Solutions for Behind-the-Meter Applications

Unlock the true potential of your energy management with EVESCO's containerized battery energy storage system for behind-the-meter
applications.

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