Quick answer
An energy resource connected on the customer side of the relevant utility meter. It may serve local loads and, where permitted, export electricity; the term does not itself establish ownership, compensation, backup capability or a non-export requirement.
Answer: Behind-the-meter, or BTM, describes an energy resource connected on the customer side of the relevant utility meter. Examples include customer-connected solar generation and battery storage. A BTM resource can serve local loads and may export when its arrangement permits. The term identifies a connection and accounting relationship; it does not mean all generation is self-consumed, export is prohibited or the site has outage backup.
The relevant meter is the reference point
Identify the service, customer account, meter and point of connection before applying the label. A site can have more than one meter, separately metered generation or different ownership arrangements. A rooftop location does not establish BTM classification, and ground-mounted PV can be BTM when connected to the customer’s metered system.
DOE’s distributed-energy guidance describes household solar behind the meter and explains that net-metered customers can receive credits for electricity supplied to the grid. Its distribution-resilience guidance also discusses BTM generation and storage feeding energy back to provide services. Export is therefore compatible with BTM terminology where the approved arrangement allows it. DOE distributed energy resources, DOE distribution-system resilience.
Ownership alone is not a sufficient classifier: customer-connected generation can be owned by a third party under a lease or power purchase agreement. Confirm the actual metering and contractual arrangement.
BTM, front-of-meter and virtual credits
| Concept | What it describes | What it does not establish |
|---|---|---|
| Behind-the-meter | A resource associated with the customer side of the relevant meter | Universal non-export operation, ownership or full-retail compensation |
| Front-of-meter | A separately interconnected resource serving the grid rather than offsetting that customer’s metered load directly | A fixed minimum size or a universal wholesale price |
| Virtual or allocated bill credits | A program’s financial allocation to participating accounts | A physical generator behind each subscriber’s meter |
Scale is not the defining rule. Nor do these labels replace the actual interconnection, tariff, planning and equipment requirements.
Trace the electricity flows
Without storage, in a simplified interval model using the same AC boundary, coincident generation can serve local load. Remaining load is imported; surplus may be exported or curtailed according to the arrangement. Storage introduces charging, discharging and losses, which require separate accounting.
Hypothetical interval example: generation is 10 kWh and site load is 6 kWh over the same interval. Assume no storage, no curtailment, permitted export and no additional losses at the stated boundary. Local consumption is 6 kWh, export is 4 kWh, and grid import is zero. At assumed avoided import and export values of $0.28/kWh and $0.08/kWh, incremental energy value is 6 × $0.28 + 4 × $0.08 = $2.00.
The example does not imply that netting all flows over an arbitrary hour reproduces every utility bill. Actual tariffs may use a different netting period, time-dependent prices, tiers or other charges. Fixed charges and some non-energy charges may remain.
Retaining an annual value calculation with explicit assumptions
Hypothetical annual energy-only example: 150,000 kWh of PV output includes 105,000 kWh used locally and 45,000 kWh exported. Assume flat applicable values of $0.28/kWh for avoided imports and $0.08/kWh for exports. Energy value is $29,400 + $3,600 = $33,000.
Separately, if a feasible reviewed design reduces chargeable demand by 40 kW in each of 12 billed months at an assumed $18/kW/month, the arithmetic is 40 × $18 × 12 = $8,640. The combined value would be $41,640 only if those reductions and energy flows are jointly achievable and the tariff applies as assumed. These are declared inputs, not a California tariff quote, actual case study or payback forecast.
Demand savings require the actual billing interval, peak windows, ratchets and feasible operation. PV does not automatically reduce the billing peak, and batteries are not required in every commercial BTM project. See peak shaving and battery time-shift modeling for the separate analyses.
Planning and customer communication
Designers should use interval load and production data appropriate to the tariff, evaluate future loads as scenarios and identify export limits. Installation teams should follow the approved connection and metering design; BTM terminology is not a wiring instruction or permission to locate monitoring equipment arbitrarily.
Sales teams should separate avoided purchases, export credits, potential demand reductions and any program payments. Verify dated terms and compare an explicit baseline. Avoid “every solar kWh earns the full retail rate” or a universal BTM-versus-wholesale price multiple.
A grid-tied system can be BTM and still shut down during an outage. Backup requires a supported, approved isolated-operation configuration; meter position does not establish resilience. For export-credit terminology, see net metering.
To evaluate the available SurgePV workflow, book a demo with your meter arrangement, load data and required comparison outputs.
Frequently asked questions
Does behind-the-meter mean no export?
No. Export depends on the approved arrangement, operating controls and applicable rules.
Is all rooftop solar behind the meter?
No. The relevant connection and metering arrangement determine classification, not roof placement alone.
Does BTM generation avoid every utility charge?
No. Savings depend on the actual bill and electricity flows. Fixed and other charges can remain.
Does a behind-the-meter battery provide backup?
Not necessarily. Backup depends on the complete supported configuration and approved operating arrangements.
Related Glossary Terms
About the Contributors
CEO & Co-Founder · SurgePV
Keyur Rakholiya is identified by SurgePV as its CEO and a company co-founder. His SurgePV author page lists only role information that can be tied to the public profile below; credentials, project totals, testing claims, media appearances, and speaking engagements are not asserted without retained evidence.
Editorial contributor · SurgePV
Rainer Neumann is credited as an editorial contributor on SurgePV content. This profile does not assert engineering credentials, project totals, software-testing experience, education, speaking engagements, or media citations because independent verification evidence is not retained in the publication record.
