Financial Services Midstream

Behind-the-Meter (BTM) Generation

byEnverus

Behind-the-Meter (BTM) Generation

Behind-the-meter (BTM) generation refers to electricity produced on the customer side of the utility meter rather than at a centralized power plant. Common examples include rooftop solar panels, on-site natural gas generators, fuel cells and battery storage systems paired with generation assets. Because the electricity is generated and consumed at the same location, BTM resources can reduce reliance on grid-supplied power, lower energy costs, improve resilience and support sustainability goals. BTM generation is increasingly important for large energy users such as commercial facilities, industrial operations and data centers.
Enverus Intelligence® Research Press Release - Surge in clean energy demand intensifies market competition

Frequently Asked Questions

What are the benefits of behind-the-meter generation?

Behind-the-meter generation can help organizations reduce electricity costs by offsetting power purchased from the grid, particularly during periods of high energy prices. It can also improve energy resilience by providing backup power during outages and reduce exposure to market volatility. For companies pursuing sustainability goals, BTM solutions such as solar and battery storage can lower emissions while providing greater control over energy consumption and long-term planning.

How does behind-the-meter generation differ from utility-scale generation?

Utility-scale generation produces electricity at large centralized facilities and delivers power through transmission and distribution infrastructure to end users. Behind-the-meter generation is installed at or near the point of consumption, allowing electricity to be used directly on-site. This reduces transmission losses and can lessen dependence on grid infrastructure. While utility-scale resources support broad regional demand, BTM resources are typically designed to meet the needs of a specific customer or facility.

What role do battery storage systems play in behind-the-meter projects?

Battery energy storage systems (BESS) are frequently paired with BTM generation to store excess electricity for later use. For example, a facility with solar panels can charge batteries during periods of high solar production and use that stored energy during peak demand periods or outages. This improves energy flexibility, enhances resilience and can increase the economic value of on-site generation by reducing demand charges and optimizing energy
consumption patterns.

Why is behind-the-meter generation becoming important for data centers and large energy users?

Data centers, manufacturing facilities and other large energy consumers face growing power demands, rising electricity costs and increasing pressure to meet sustainability objectives. BTM generation offers a way to secure reliable power, supplement grid capacity and support operational continuity. By combining technologies such as solar, natural gas generation and battery storage, large energy users can manage energy costs more effectively while reducing exposure to grid congestion, transmission constraints and power supply disruptions.

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