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Which ESS business model is most commonly associated with reducing energy costs for commercial and industrial customers?



The Behind-the-Meter (BTM) ESS business model is most commonly associated with reducing energy costs for commercial and industrial customers. In a BTM ESS configuration, the energy storage system is installed on the customer's side of the meter, meaning it is located at the customer's facility and is used to manage their energy consumption. The primary goal of BTM ESS is to reduce the customer's electricity bill by utilizing strategies such as peak shaving, load shifting, and demand response. Peak shaving involves discharging the ESS during peak demand periods to reduce the customer's peak demand charges. Load shifting involves charging the ESS during off-peak hours, when electricity prices are lower, and discharging it during peak hours, when electricity prices are higher. Demand response involves reducing the customer's electricity consumption during periods of high grid stress in exchange for financial incentives from the utility. By implementing these strategies, BTM ESS can significantly reduce the customer's electricity costs, improve their energy resilience, and provide ancillary services to the grid. The BTM ESS business model can be implemented through various ownership structures, including customer-owned systems, third-party-owned systems, and shared savings agreements.