Equitable Design of Behind-the-Meter Energy Storage Programs: A Customer Perspective

Abstract

Utility deployment of energy storage is done as a utility-scale asset connected directly to the grid (front of meter) or in partnership with a customer on the customer’s premises (behind the meter). By offering incentives for customers to install behind-the-meter storage, utilities can gain operational control of the assets and operate them in a manner that benefits all customers. Some states have also begun providing increased incentive levels to low-income customers to ensure that they can equitably share in the benefits of behind-the-meter energy storage programs. This paper evaluates different approaches to energy storage procurement from the customer’s perspective and evaluates how behind-the-meter programs can be equitably structured while keeping customers financially indifferent between front-of-meter and behind-the-meter energy storage procurements.