How does BTM storage reduce electricity costs?
BTM batteries lower bills primarily through demand charge management and time-of-use arbitrage, with additional savings available from demand response and power factor correction.
BTM batteries lower electricity bills through two primary mechanisms: demand charge management and time-of-use (TOU) arbitrage.
Demand charge management is usually the bigger value driver for commercial buildings. Utilities charge businesses based on their peak power draw during a billing period — even if that peak only lasts 15 minutes. A BTM battery monitors building load in real time and discharges during spikes, "shaving" the peak and lowering the demand charge. For buildings with spiky load profiles (think elevators, HVAC startups, or manufacturing equipment), the savings can be substantial.
TOU arbitrage is simpler: the battery charges when electricity is cheap (off-peak hours) and discharges when rates are high (on-peak hours). As more utilities move to time-varying rate structures, this value stream is becoming more widely available.
Some buildings also benefit from reducing power factor penalties, avoiding ratchet charges, or participating in utility demand response programs that pay customers to reduce load during grid stress events. A well-configured BTM system can stack several of these value streams simultaneously.