Behind-the-meter energy storage surges ahead of utility-operated batteries

Behind-the-meter (BTM) energy storage on-site options that allow energy customers to store capacity for use as needed surged in 2018. In fact, for the first time, customer-operated BTM storage surpassed front-of-meter capacity (operated by electric providers) in the second quarter of 2018. Multiple factors including high demand charges, reliance on solar, changes to energy tariffs and lower storage costs are driving the trend, according to industry experts. Demand charges the portion of an electric bill that reflect a customer’s peak level of demand can account for 30 to 70% of a customer’s electricity bill. They typically are based on the highest average electricity use during a specific time period.