Global Behind-the-Meter (BTM) Market Grows Steadily at a CAGR of 42.95%

Introduction

A prominent aspect fostering the growth of the global behind-the-meter (BTM) market is the increasing demand for energy resilience and independence, especially in regions frequently affected by power outages or grid instability. Both residential and commercial users are turning to BTM solutions to maintain a reliable power supply and minimize dependence on centralized energy systems.

Furthermore, technological innovations, such as smart meters, IoT-based monitoring tools, and AI-driven energy management platforms, are accelerating market expansion by enabling more efficient energy consumption and cost savings.

In addition, the surging emphasis on sustainability and carbon neutrality, particularly among corporate entities, is encouraging the adoption of BTM systems as part of their environmental, social, and governance (ESG) goals. The surge in the adoption of electric vehicles (EVs) also supports this movement, as BTM systems integrated with EV charging infrastructure allow for smarter energy use and better on-site power control.

Market Dynamics

High electricity prices and demand charges drive the global market

Rising electricity prices and growing demand charges are key drivers augmenting the expansion of the global behind-the-meter (BTM) market. These escalating costs are prompting both residential and commercial users to adopt more economical energy alternatives.

• For example, in the U.S., residential electricity bills have climbed by 4.5% over the past year—surpassing the inflation rate of around 2.2%, primarily due to increased natural gas prices, investments in grid upgrades, and surging demand from electric vehicles and data centers. In Australia’s New South Wales, electricity rates are set to rise by as much as 9.1% starting July 1, 2025, driven by elevated wholesale prices and infrastructure expansion to support renewable energy.

Such price hikes make peak demand charges particularly burdensome for high-consumption users. BTM solutions like rooftop solar and energy storage systems help mitigate these costs by reducing dependence on the grid, avoiding peak pricing, and enhancing energy efficiency, contributing significantly to their growing popularity worldwide.

Government incentives and net metering policies create tremendous opportunities

Supportive government policies and net metering schemes are creating substantial growth opportunities in the global behind-the-meter (BTM) market. These initiatives enable consumers, especially those with rooftop solar systems, to generate their own electricity and feed surplus energy back into the grid in exchange for financial credits.

• For instance, India’s 2024 Rooftop Solar Scheme under the PM Surya Ghar initiative offers subsidies of up to INR 78,000 (approximately $935) to homeowners, significantly boosting residential BTM adoption. In the United States, the Inflation Reduction Act has extended a 30% federal tax credit for both residential and commercial solar installations by 2032.

Such incentives shorten payback periods and enhance the economic viability of BTM systems. Furthermore, California’s revised Net Billing Tariff (NEM 3.0) is accelerating the adoption of solar-plus-storage systems, encouraging consumers to opt for integrated BTM solutions. Overall, these favorable regulatory environments are expected to drive global market expansion.

Regional Analysis

In North America, the behind-the-meter (BTM) market is expanding rapidly due to rising energy costs, grid reliability concerns, and favorable clean energy incentives. The U.S. Inflation Reduction Act (IRA) of 2022 offers tax credits for battery storage and solar systems, accelerating residential and commercial adoption. For instance, Tesla's Powerwall installations surged in California following Time-of-Use (TOU) electricity pricing and frequent grid outages.

Similarly, Canada's Green Homes Grant is pushing BTM solar and battery projects among homeowners. Commercial sectors, including data centers and manufacturing facilities, are leveraging BTM solutions to reduce demand charges and enhance resilience. Additionally, states like New York and Massachusetts are piloting virtual power plant (VPP) programs that aggregate BTM assets for grid support. This shift is creating a decentralized energy landscape where consumers are becoming active participants in energy markets, boosting regional BTM adoption.

Key Highlights

1. The global behind-the-meter (BTM) market size was valued at USD 370.02 billion in 2024 and is estimated to grow from USD 528.94 billion in 2025 to reach USD 9223.22 billion by 2033, growing at a CAGR of 42.95% during the forecast period (2025–2033).
2. The global behind-the-meter market is segmented by battery type into lithium-ion battery, lead acid battery, and others. The lithium-ion battery segment dominated the market.
3. By technology, the market is divided into solar photovoltaic (PV), battery energy storage systems (BESS), combined heat and power (CHP), electric vehicle (EV) chargers, and others.
4. Based on capacity, the market is categorized into up to 500 kW and above 500 kW.
5. By end-user, the market is classified into residential, commercial, and industrial.
6. North America is the highest shareholder in the global market.

Competitive Players

1. Tesla, Inc.
2. Sunrun Inc.
3. Enphase Energy, Inc.
4. Schneider Electric SE
5. Siemens AG
6. Generac Power Systems, Inc.
7. Sonnen GmbH (Shell Group)
8. LG Energy Solution Ltd.
9. Eaton Corporation
10. Huawei Technologies Co., Ltd.

Recent Developments

• In July 2025, Texas-based co‑op GVEC and Base Power have launched a program deploying residential battery systems, integrated with Lennar-built homes that serve as behind‑the‑meter DERs. Homeowners enjoy full backup power and app-based control, while GVEC can dispatch stored energy into ERCOT’s ADER market to bolster grid stability and reduce costs

Segmentation

1. By Battery Type
   1. Lithium-ion Battery
   2. Lead Acid battery
   3. Others
2. By Technology
   1. Solar Photovoltaic (PV)
   2. Battery Energy Storage Systems (BESS)
   3. Combined Heat and Power (CHP)
   4. Electric Vehicle (EV) Chargers
   5. Others
3. By Capacity
   1. Up to 500 kW
   2. Above 500 kW
4. By End-User
   1. Residential
   2. Commercial
   3. Industrial