What's the difference between FTM and BTM energy storage?
FTM storage serves the grid at utility scale; BTM storage serves individual buildings behind the customer's meter. They solve different problems.
The distinction comes down to where the battery sits relative to the utility meter and who it serves.
Front-of-the-meter (FTM): Connected to the transmission or distribution grid on the utility side. Typically 10-500+ MW in scale. Owned by utilities, IPPs, or merchant developers. Provides grid-level services like energy arbitrage, capacity, and frequency regulation. Revenue comes from wholesale electricity markets and utility contracts.
Behind-the-meter (BTM): Installed at a customer's facility on their side of the meter. Typically 50 kW to 5 MW for commercial buildings. Owned by the building owner or a third-party provider. Primarily reduces the customer's electricity bill through demand charge reduction, time-of-use optimization, and backup power. Revenue comes from utility bill savings and, in some markets, participation in demand response programs.
Some BTM systems can participate in grid services through aggregation programs (sometimes called "virtual power plants"), blurring the line between BTM and FTM. But the primary economic driver differs: FTM optimizes for wholesale market revenue, BTM optimizes for retail bill savings.