Front of meter vs behind the meter

Front VS Behind meter

Introduction

The terms “Front of Meter” and “Behind the Meter” are often now mentioned with increased frequency when it comes to utilities and energy supply. These relatively new terms reflect the growing landscape of the industry, driven by ongoing technological advancements and recent developments.

The two definitions explained

“Behind-the-meter” (BTM) refers to any direct supply energy system or energy-related activity located on the customer side of the installed customer utility meter. It is independent of the energy utility provider and doesn’t need to be ‘monitored and counted’ via that meter to be used. These facilities are all the responsibility of, and managed by, the business site owner.

On-site solar panels, wind turbines and battery energy storage systems are all considered BTM. Any of the energy produced and/or stored locally and used from these systems is independent of the local utility company.

However, it should be noted that BTM is not the same and should therefore not be confused with the term “off-grid” (Definition of ‘Off-grid’:- “Not connected to or served by publicly or privately managed utilities”). Many BTM solar and wind technologies are still connected to the grid even though the energy they supply is not routed through the electricity meter. This is for times when there is no sun or wind, or when solar and wind technologies are otherwise not in use and there is a need for businesses to connect to the national grid for its energy supply – this external energy must be metered and paid for.

“Front-of-Meter” (FTM) refers to any energy system or energy-related activity located on the utility side of the business (or home) and is connected to and delivered by the utility company and must be ‘monitored and counted’ by the customer’s meter to be used. This energy supply is the responsibility of, and managed by, the utility company.

Export Metering and BTM

Another aspect for consideration with BTM is those businesses that produce their own energy via solar panels or wind turbines and have excess energy they cannot store themselves and wish to return back to the grid for a credit. For this to happen, a smart export meter that can provide half-hourly readings is required and the business will need to apply to the government’s Smart Export Guarantee (SEG) scheme. The renewable electrical generating system operated by the business will also have to meet specific SEG criteria. It goes without saying that the business will not be paid for the electricity it generates and uses itself.

Microgrids

Keeping within the subject of BTM, it is well worth considering the versatility microgrids can bring to the on-site energy system. This becomes even more relevant if you have a mixture of self-sufficiency (solar panels, wind turbines, generators and storage batteries) and grid electricity to supply your business power needs.

Microgrids have become a powerful method of securing an organization’s power supply against the unexpected. This is even more relevant in remote areas should the main power grid suffer an outage. When using your existing BTM power structure to take control of your energy, microgrids can help secure your power needs through difficult supply times and manage your internal energy demand more efficiently and effectively.

Voltage optimization

To ensure you can optimise your BTM energy activities, it is worth considering that you have some form of voltage control for the electrical equipment that you use. When your provided voltage is either too high or too low, this can have a dramatic effect on your usage of electricity and can shorten the working life of the equipment you use. It will also have a negative impact on any cost savings you might otherwise make.

Voltage optimization is a process that involves regulating the voltage supplied to electrical equipment to ensure it operates at its optimal level. In the UK, this typically means maintaining a steady voltage of 220 volts. While most electrical equipment has an inbuilt tolerance to fluctuations, if you can prevent the cause at source and stabilise the voltage to a steady and constant 220v, this will drastically reduce your electricity usage, help preserve the life of your electrical equipment and consequently, reduce your energy bills.

Some “Behind-the-meter” (BTM) facts

Energy management – businesses can have increased control of their energy usage, even more so if they are using microgrids and smart technology. It all adds up to greater energy resiliency and cost savings for the business.

Energy storage – with the technology in place, battery storage can be used to store excess electricity, especially during periods of low demand. This can then be used in emergencies or to offset external peak demands.

Energy generation – businesses can reduce their reliance on utility-provided electricity by utilising their own energy such as that from solar panels and wind turbines. This not only saves costs, but this renewable energy can contribute positively to the environment and reduce the carbon footprint of the business.

Energy conversion – on-site electricity surpluses can be used to generate energy in other forms, such as heat or hydrogen, that can be used as heat or power for the business.

Some “Front-of-Meter” (FTM) facts

Central power production – utility companies provide electricity generated from numerous sources – traditional gas/coal, nuclear, wind and solar – delivered via the national grid on an immense scale that large industrial businesses could never reproduce.

Load and demand – utility companies play a very important part in managing demand and keeping the national grid stable, adjusting and re-routing supply as needed to ensure businesses stay electrically online.

National infrastructure – FTM demands that the electricity supply companies have all the infrastructure (transformers, pylons, cabling, professional maintenance) in place and all the other equipment required to ensure the electricity produced reaches businesses reliably and with stability.