Behind the Meter (BTM) Market Size, Share, and Industry Analysis, By Battery (Lithium-ion Battery, Lead-acid Battery, and Others), By Capacity (Up to 500 kW and Above 500 kW), By End User (Residential, Commercial, and Industrial), and Regional Forecast, 2026-2034

The global behind the meter market size was valued at USD 7.4 billion in 2025. The market is projected to grow from USD 8.82 billion in 2026 to USD 36.02 billion by 2034, exhibiting a CAGR of 19.23% during the forecast period.

Behind-the-meter (BTM) refers to energy generation, storage, and management systems located on the customer's side of the electricity meter, enabling distributed energy generation, storage, and management. These systems include technologies, such as solar panels and batteries, offering increased energy independence, resilience during outages, and potential cost savings through efficient usage patterns and participation in demand response programs.

The cost-saving characteristics of the BTM are one of the leading factors contributing to the market growth. Through BTM systems, such as solar panels and batteries, consumers can generate their electricity, thereby reducing their reliance on grid-supplied power. By producing energy from renewable energy sources and storing excess energy for later use, consumers can offset their electricity bills. Thus, the reduction in electricity bills has led to increased installations of BTM in different countries, further leading to market growth. For instance;

• According to the New York Independent System Operator (NYISO), New York's behind-the-meter solar capacity has surpassed 5,000 MW, marking a significant advancement toward the state's 2030 objective of achieving 10,000 MW in distributed solar energy.

While these systems offer long-term savings, the initial investment acts as a barrier for the market, as many consumers, especially households or businesses with limited capital, refrain from adopting them. Thus, the significant upfront costs associated with installing Behind-the-Meter (BTM) systems, such as solar panels and batteries, present a challenge for the expansion of the market. 

The COVID-19 pandemic led to economic uncertainties, which resulted in budget constraints for consumers and businesses. Moreover, disruptions in global supply chains caused by lockdowns and restrictions affected the availability of components and equipment necessary for BTM installations, leading to delays and increased costs for projects.

Key INSIGHTS

The report includes the following key findings:

• Recent Advances in the Behind the Meter (BTM) Market
• Key Industry Trends
• Regulatory Landscape for the Behind the Meter (BTM) Market
• Key Industry Developments (Mergers, Acquisitions, and Partnerships)

SEGMENTATION

ANALYSIS BY BATTERY

Based on the battery, the market is divided into lithium-ion battery, lead-acid battery, and others. The lithium-ion battery segment dominates the BTM market and is expected to grow at the fastest rate owing to its advantageous characteristics, such as high energy density, longer lifespan, and faster charging capabilities.

The lead-acid battery segment is expected to hold a relevant share in the coming years due to its market availability at lower costs than lithium-ion batteries.

ANALYSIS BY CAPACITY

Based on capacity, the market is segmented into up to 500 kW and above 500 kW. The up to 500 kW segment represents the major share in the market due to its growing installations in residential, small commercial, and industrial sectors. The up to 500 kW segment is getting traction in these sectors owing to the limited demand for energy compared to industrial sectors.

The above 500kW segment is anticipated to grow at the fastest rate owing to the growing sustainability in the industrial sectors. Above 500 kW is mostly applied in the large industrial sector owing to the high requirements for electricity for producing and manufacturing goods.

ANALYSIS BY END USER

Based on the end user, the behind the meter (BTM) market is segmented into residential, commercial, and industrial. The residential sector holds the dominant share in the market owing to the increasing consumer awareness of renewable energy solutions, coupled with declining costs of solar panels & batteries.

The commercial sector is forecasted to grow at the fastest rate due to the significant expansion of IT, BFSI, data centers and other sectors. The expansion of these sectors, coupled with the sustainability goals of the companies, is contributing to the rise of the commercial segment in the market.

The industrial sector is projected to hold a notable share in the upcoming years due to the penetration of large-sized batteries, which are able to meet the power requirement for the industrial sector.

REGIONAL ANALYSIS

The behind-the-meter (BTM) market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. North America holds the major share of the market due to the increasing adoption of sustainable energy sources and the need for energy storage and management systems.

Europe is also accounting for a significant share of the global Behind the Meter Market due to the stringent regulations and ambitious targets for reducing carbon emissions set by the European Union. This region is witnessing massive investments in renewable energy, which is playing a vital role in the expansion of the BTM market in Europe.

Asia Pacific is witnessing rapid growth in the BTM market, driven by increasing urbanization, industrialization, and rising electricity demand in countries, such as China, Japan, Australia, and India.

Latin America will grow at a steady rate owing to rising FDI and Greenfield investments in countries, such as Brazil, Mexico, and others. The expansion of these sectors will surge the demand for clean energies, further contributing to the market growth.

The Middle East and Africa will grow significantly owing to the rising construction of smart cities, coupled with the government's targets for achieving carbon neutrality.

KEY PLAYERS COVERED

Key players in the global behind the meter (BTM) market are Honeywell International Inc., ESS, Inc., Stem, Inc., Johnsons Controls, Schneider Electric, SUN POWER, Sonnen, Greensmith, JLM Energy, Clean, Energy Storage Inc., and Oriana Power.

KEY INDUSTRY DEVELOPMENTS

• In January 2024, Digital Power Optimization Inc. (DPO), a green data center developer, signed a power purchase agreement with a major multinational renewable energy producer. The agreement aims to deploy data centers totaling 100 MW across up to six of the Seller's Texas wind farms, which include multiple 150 MW+ facilities.
• In October 2023, the City of Fresno, California, Department of Public Utilities (DPU) started the construction of a 27 MW behind-the-meter solar and battery energy storage project. This initiative will be hosted at three energy-intensive sites, including the Fresno-Clovis Regional Wastewater Reclamation Facility and two surface water treatment facilities. Upon completion, the Fresno-Clovis project will rank among California's largest metered solar energy and battery storage projects, adding 17 MW of solar and 2.3 MW of energy storage.