Turning Customer Batteries Into Grid Capacity: How Behind-the-Meter Storage Is Reshaping the Future of Flexible Power

Power outages have become increasingly common, and longer in duration, due to extreme weather and temperature events. Behind-the-meter (BTM) batteries are proving their worth, as they have become more than niche devices quietly supporting backup power during storms. These batteries now offer vital support in an increasingly volatile energy ecosystem.

BTM batteries are emerging as one of the most important sources of new grid capacity, as they are flexible, dispatchable, and available far faster than traditional infrastructure expansion. In a power sector defined by rising energy demand, climbing grid-congestion costs, and tightening reliability pressures, tapping into BTM energy storage has become not just valuable but essential for electric utilities. Today’s batteries (Figure 1) are proving that, when aggregated and coordinated, they can meaningfully support peak demand, reduce the likelihood of blackouts, and defer costly utility investments in firm capacity.

New program designs, such as Customer Battery Energy Sharing (CBES), represent an inflection point in the conventional energy paradigm. Electric utilities can learn from early deployments that are already demonstrating measurable reliability and resilience benefits. Likewise, the growing emphasis on collaboration among original equipment manufacturers (OEMs), and device interoperability, provides utilities with a viable path to grow customer participation at scale, adding even greater value to these batteries.

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Looks like utilities are becoming more confident about batteries. Technology has been around for decades. Electricity is stored as DC. Solid state rectifiers and inverters must be part of this.

Engineers tend to be very conservative. They prefer equipment that will last a lifetime. Adoption of new technology takes a while. Some would say arrival of a new generation of engineers is required.

Great to hear they are making progress.

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PG&E is offering free batteries for people in rural areas as a backup for power outages for older people like me and my wife. They do not require solar, but they do require main service panels to meet safety requirements. My old Zinsco service panel is not allowed, so I am upgrading to a new Eaton service panel.

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I wonder if lithium batteries are required for this application. They are important where weight is a factor as in transportation. But sodium batteries might be cheaper with more abundant raw materials. Could be a better choice.