With energy costs continuing to rise and concerns about climate change intensifying, businesses are increasingly seeking strategies to control energy consumption effectively. One effective method is to implement behind-the-meter (BTM) systems—technology and infrastructure located on the user’s side of the electricity meter. From solar panels to battery storage solutions, BTM systems enable users to generate their own energy, store it for future use, and optimize energy use more efficiently.
BEHIND-THE-METER
Behind-the-meter (BTM) refers to energy systems located on the user’s side of the electricity meter. These systems may include solar photovoltaic (PV) panels, battery storage units, or efficient appliances. The energy generated or stored by these systems is primarily used for the building’s own consumption, thereby reducing reliance on grid electricity and lowering electricity bills. In many cases, any excess energy generated by BTM systems can be sold back to the grid, providing users with additional revenue or energy credits.
FRONT-OF-THE-METER
Conversely, front-of-the-meter (FTM) systems are located on the grid side of the meter. FTM systems typically encompass large-scale energy generation and storage facilities, such as power plants, wind farms, solar farms, and large battery storage systems. The energy generated or stored in these systems is intended to supply the grid, which is then distributed to various customers—residential, commercial, or industrial. FTM resources are essential for grid stability and management, helping to balance supply and demand, ensuring a reliable energy supply, and increasingly facilitating the integration of renewable energy into the grid.
BEHIND-THE-METER VS. FRONT-OF-THE-METER
While both behind-the-meter and front-of-the-meter systems are important components of the energy landscape, they play different roles and have different impacts on energy users. BTM systems empower customers to take control of their own energy production and consumption, potentially leading to cost savings and increased resilience. In contrast, FTM systems are crucial for overall energy supply and grid stability; their importance is growing as we increasingly utilize renewable energy sources.
BEHIND-THE-METER SYSTEM EXAMPLES
- Solar Photovoltaic (PV) Systems: Solar PV systems utilize sunlight to generate electricity through semiconductor materials. These systems provide clean, renewable energy, reducing reliance on the grid and lowering energy costs. Their scalability makes them attractive—they can be installed on residential rooftops or implemented on a larger scale in commercial settings.
- Battery Storage Systems: Battery storage solutions capture excess energy for later use. They are particularly beneficial when integrated with solar PV systems—excess energy generated during the day can be stored and used at night or during power outages. This energy storage enhances energy self-sufficiency and helps manage demand. At the same time, it can reduce electricity costs during peak demand periods.
- Wind Turbines: Wind turbines can be installed in various locations to harness wind energy, a renewable and abundant resource, to generate electricity. Similar to solar PV systems, these units can directly power homes, businesses, or devices not connected to the grid. They are particularly beneficial when paired with storage in rural or remote areas with strong, consistent wind resources.
- Combined Heat and Power (CHP) Systems: CHP systems, also commonly known as cogeneration, simultaneously generate both electricity and usable heat from a single energy source, often natural gas. These systems represent an efficient method of energy production, optimizing resource utilization and improving overall energy efficiency.
Keheng’s Behind-the-Meter Solutions
Combined Heat and Power (CHP) Systems: CHP systems are a cornerstone of Keheng’s energy solutions, capturing heat that would otherwise be wasted during electricity generation. Ideal for commercial and industrial sites with consistent power and thermal energy needs, these systems enhance efficiency…
Electric Vehicle (EV) Charging Stations: At Keheng, we integrate EV charging stations with renewable energy and energy storage systems to form robust behind-the-meter solutions. These stations draw power from energy storage systems to charge EVs, often replenishing energy storage during off-peak hours or when excess renewable energy is available. This integration reduces grid demand, lowers energy costs, and optimizes energy use.
Energy Management Systems (EMS): While not a direct source of power, Keheng’s EMS plays a vital role in behind-the-meter energy management. Our EMS uses advanced software and technology to monitor, control, and optimize the performance of energy production and consumption equipment. By managing energy use during periods of low demand or high renewable energy generation, our EMS maximizes efficiency and minimizes costs. Our EMS solutions are increasingly incorporating artificial intelligence to predict energy demand, further optimizing energy use.
Fuel Cells: Keheng’s fuel cells generate electricity through a chemical reaction, typically using hydrogen. Compared to traditional combustion-based power generation, these systems are more efficient and produce fewer emissions. While initial costs are higher, fuel cells are becoming a viable option as prices decline and as they are integrated into broader sustainability and resilience strategies.
Microgrids: Keheng’s microgrids are localized energy systems that can operate independently from the main grid. Typically composed of multiple energy sources such as solar PV, wind, fuel cells, or generators, combined with energy storage systems, our microgrids can serve a single building or an entire community. They offer energy security, resilience, and grid independence, allowing users to maintain power during outages and potentially sell excess capacity back to the grid.
Geothermal Systems: Keheng utilizes geothermal energy to provide heating, cooling, and sometimes electricity generation. While these systems require significant upfront investment and are geographically constrained, they can offer substantial long-term savings and environmental benefits.
Demand Response Systems: While not a generation system, demand response is crucial in Keheng’s behind-the-meter energy management. These systems enable users to respond to signals from utility companies to reduce energy consumption during peak hours, resulting in cost savings and helping to stabilize the grid. Large energy consumers can receive financial incentives for their participation in demand response programs.
Smart Appliances: Keheng’s smart appliances, from HVAC systems to refrigerators, are designed to optimize energy use based on user needs and available energy. They can be programmed to operate when energy costs are lower or when renewable energy generation is higher. Integrating energy storage systems allows users to further reduce costs and improve efficiency.
These are just a few examples of Keheng’s behind-the-meter solutions. The choice of solution depends on factors such as energy needs, available resources, geographic location, and financial capabilities. Regardless of the specific technical solution, Keheng’s goal is to optimize energy use, reduce costs, support the grid, and contribute to a sustainable and resilient energy future.
Front-of-the-Meter System Case
Utility-Scale Solar Farms: Keheng’s utility-scale solar farms are large installations of solar panels that generate significant amounts of electricity, which is fed directly into the grid. Typically located in areas with abundant solar resources, these farms are an important component of Keheng’s front-of-the-meter solutions.
The Role of Grid-Side Systems for Renewable Energy
Solar Energy Solutions: Solar energy systems, including solar panels and photovoltaic cells, capture sunlight and convert it into solar electricity. This technology plays a vital role in providing a clean, renewable energy supply, contributing to the reduction of greenhouse gas emissions.
Wind Farms: Wind farms, consisting of numerous wind turbines, harness wind energy to generate electricity on a large scale. The electricity produced is fed into the grid, powering homes, businesses, and industries. Wind farms are a significant component of renewable energy infrastructure in many countries.
Hydroelectric Power Facilities: Hydroelectric facilities generate electricity using the energy of falling or flowing water. These plants, often located at dams or along rivers, can provide a substantial amount of renewable energy to the grid.
Natural Gas Power Plants: These power plants generate electricity by burning natural gas, which has a lower carbon intensity compared to traditional coal or oil power plants. Often considered a transitional technology, these plants offer flexibility and reliability while the grid transitions to fully renewable energy sources.
Large-Scale Energy Storage: Large-scale energy storage solutions, such as battery energy storage systems or pumped hydro storage, are crucial for storing surplus energy and releasing it during periods of peak demand or low supply. These systems are essential for maintaining grid stability and integrating intermittent renewable energy sources like wind and solar power. They will require stringent quality certifications, such as UL-9540 standards (UL-9540 standard).
Nuclear Power Plants: While controversial due to concerns such as waste management and potential risks, nuclear power plants provide a substantial amount of baseload power in many countries, while producing minimal greenhouse gas emissions.
Grid Management Systems: Energy management systems are essential for both grid-side (front-of-the-meter) and customer-side (behind-the-meter) energy operations. These systems employ advanced technologies and data analytics to balance energy supply and demand, integrate renewable energy sources, manage outages, and ensure grid stability and reliability. They leverage big data and artificial intelligence technologies to efficiently forecast energy trends.
In conclusion, these grid-side solutions ensure a stable and reliable electricity supply. Each solution plays a unique role, whether it’s in generating renewable energy, providing energy storage, or facilitating efficient grid operations. As the global energy system transforms, these grid-side innovations, along with various customer-side solutions, will help pave the way for a sustainable, resilient, and decarbonized energy future.
Benefits of Customer-Side Systems
Commercial and industrial energy consumers often have substantial energy demands, making them ideal candidates for customer-side solutions. Here are the reasons why these businesses might invest in such systems, and the benefits they can gain:
Cost-Effectiveness: A key motivation for adopting customer-side systems is the potential for significant cost savings. By generating their own electricity, businesses can reduce their reliance on grid-supplied power, which often comes with higher costs. Battery energy storage can further reduce costs by capturing excess energy during low-demand periods for use during peak hours, avoiding peak pricing.
Energy Autonomy and Reliability: Customer-side systems offer commercial and industrial users enhanced control over their energy supply. Companies with on-site generation and storage systems can maintain operations during grid outages, avoiding potential losses and ensuring business continuity.
Commitment to Sustainability: Many companies are committed to sustainability goals as part of their corporate responsibility initiatives. By implementing renewable energy systems, such as solar panels or wind turbines, they can reduce their carbon footprint and demonstrate their environmental commitment.
Regulatory Compliance: In various regions, regulations or incentives may promote or require the adoption of renewable energy or energy-efficient practices. By integrating customer-side systems, companies can comply with relevant regulations and help build a more sustainable energy future.
Keheng: Leading the Way in Behind-the-Meter Energy Efficiency Solutions
Keheng is at the forefront of implementing behind-the-meter systems, providing significant benefits to commercial and industrial energy users. These systems not only offer financial advantages but also enhance a company’s risk management capabilities and contribute to sustainability goals.
Reducing Costs: By deploying on-site power generation systems, companies can significantly reduce their energy expenses. This is achieved through solar photovoltaic (PV) systems, battery storage, and other innovative technologies. Additionally, businesses can leverage incentives such as tax credits and rebates to further lower costs.
Enhancing Power Quality: Keheng’s systems enhance power quality by mitigating voltage fluctuations and power interruptions. This is crucial for industries that rely on sensitive equipment, such as manufacturing, where power quality is paramount.
Load Management: Energy management systems enable companies to optimize their energy usage. By shifting loads to off-peak hours and participating in electricity demand response programs, companies can effectively manage their energy consumption, leading to reduced costs and improved efficiency.
Keheng’s strategic investments in these systems offer financial returns, enhanced sustainability, and greater energy independence. The right choice of behind-the-meter solutions depends on the specific needs of each organization. For businesses with ample rooftop space, solar PV systems are ideal; for those prioritizing operational stability, battery storage systems offer greater advantages; or a combination of both. Regardless of the choice, these assets provide an opportunity to minimize energy costs, enhance sustainability, and improve energy independence.
Behind-the-Meter Projects:
Several prominent companies have successfully implemented behind-the-meter systems and achieved notable benefits. Here are a few noteworthy examples:
Apple: At its California headquarters, Apple Park, Apple installed one of the world’s largest on-site solar energy systems, including 17 megawatts of rooftop solar and 4 megawatts of biogas fuel cells. On-site battery storage helped Apple achieve its goal of powering all its global operations with 100% renewable energy.
Walmart: With a commitment to 100% renewable energy operations by 2035, Walmart has installed solar panels and wind turbines at various locations. These installations help reduce energy costs and advance Walmart’s environmental goals. Additionally, Walmart participates in demand response programs, earning financial incentives while stabilizing the grid.
IKEA: IKEA has installed solar panels on rooftops of multiple retail locations globally, aiming for 100% renewable energy and achieving 76% renewable electricity share in 2022. These initiatives, including wind turbines, propel IKEA towards its 2030 goal of becoming “climate positive,” meaning they aim to have a positive impact on the climate.
Mars Inc.: The company has deployed wind turbines and solar farms globally. Mars’ U.S. operations are powered entirely by renewable energy, with the Mesquite Creek Wind Farm in Texas making a significant contribution.
These companies, among others, have realized substantial energy cost savings and made meaningful progress toward their sustainability goals. By generating power on-site, they have increased their energy independence, reduced their environmental impact, and demonstrated leadership in the transition to a sustainable future.