As India moves rapidly toward a greener and more electrified future, energy storage is emerging as a cornerstone of the nation’s power transition. From enabling higher penetration of renewables to making the grid more resilient, storage technologies are being deployed across different layers of the power system. But not all storage is created equal. In this emerging landscape, two distinct approaches are gaining traction: Front-of-the-Meter (FTM) and Behind-the-Meter (BTM) storage. While both serve the common purpose of balancing supply and demand, their roles, locations, and benefits differ significantly.
Understanding these differences isn’t just technical jargon; it is central to how we plan India’s energy future. With ambitious targets of 500 GW of non-fossil capacity by 2030 and Net Zero by 2070, India will require storage solutions that can operate both at the grid scale and at the consumer level. This article explores the key differences, applications, and national relevance of BTM and FTM storage models, especially as India seeks to democratize energy through policy, innovation, and localization.
What is Front-of-the-Meter (FTM) Storage?
Front-of-the-Meter storage refers to battery systems that are deployed before the consumer meter, usually connected directly to the transmission or distribution network. These systems are typically large-scale and are operated by utilities, independent power producers (IPPs), or grid operators.
Their main function is to provide grid-level services such as:
- Frequency regulation
- Renewable energy time-shifting
- Peak demand management
- Ancillary services
FTM systems are particularly vital for balancing the intermittent nature of renewable energy sources like solar and wind. For instance, during the day, when solar generation peaks, excess energy can be stored and then dispatched in the evening when demand rises.
A notable example is Tata Power’s 10 MW lithium-ion battery system in Delhi, developed in partnership with AES and Mitsubishi. This installation marked India’s first grid-scale battery and helped stabilize grid frequency while demonstrating the feasibility of large-scale energy storage.
What is Behind-the-Meter (BTM) Storage?
Behind-the-Meter storage, on the other hand, is deployed on the consumer’s side of the electricity meter. It includes energy storage systems installed in homes, commercial buildings, hospitals, or factories. Often paired with rooftop solar systems, these batteries store self-generated energy for later use or serve as backup during outages.
BTM systems are owned and operated by the end users and offer several benefits:
- Load shifting to avoid peak-time charges
- Backup power during grid failures
- Reduction in diesel generator usage
- Increased self-reliance
For example, a tech park in Bengaluru using BTM battery storage can reduce its dependence on diesel gensets during peak hours or outages, simultaneously lowering its carbon footprint and operational costs. Similarly, residential complexes in Pune are adopting lithium-ion storage systems for backup, replacing traditional inverters and lead-acid batteries.
Key Differences: FTM vs BTM Storage
Understanding the contrast between these two models is essential for choosing the right solution depending on location, scale, and use-case. Here’s a comparative overview:
| Feature | FTM Storage | BTM Storage |
| Location | Utility side of meter | Consumer side of meter |
| Ownership | Utility/IPPs/Grid Operator | Individual/Business |
| Use Cases | Grid balancing, frequency support | Peak shaving, backup power |
| Scale | MW to GW | kW to MW |
| Revenue Model | Capacity payments, energy arbitrage | Bill savings, demand response |
| Visibility | Fully integrated with grid operations | Limited grid interaction |
India’s Policy Landscape and Storage Push
The government of India has recognized the need for robust storage infrastructure and is actively supporting both FTM and BTM deployments. Key initiatives include:
- PLI Scheme for Advanced Chemistry Cells (ACC): Aims to develop 50 GWh of battery manufacturing capacity in India, supporting both BTM and FTM applications.
- National Green Hydrogen Mission: Requires FTM storage to stabilize electrolyzers powered by renewables.
- SECI’s BESS Tenders: Solar Energy Corporation of India (SECI) recently floated tenders for 4,000 MWh of standalone Battery Energy Storage Systems (BESS), marking one of the largest FTM opportunities in the country.
- Smart Cities Mission: Encourages decentralized storage solutions, including BTM batteries, to power EV charging, water systems, and emergency services.
- Draft Electricity Rules on Energy Storage (2022): Propose clear definitions and roles for both FTM and BTM systems, a key step in removing regulatory ambiguities.
According to NITI Aayog and Rocky Mountain Institute, India will need around 160 GWh of cumulative storage capacity by 2030 to support its energy transition. This demand will have to be met by both large utility-scale projects and distributed solutions across urban and rural landscapes.
Use Cases & Applications
FTM Storage Examples:
- Renewable energy plants integrating storage for time-shifted supply
- Load balancing in states with high renewable penetration like Tamil Nadu and Gujarat
- Frequency regulation services provided by large-scale battery systems
BTM Storage Examples:
- Hospitals using battery storage for uninterrupted power supply
- EV charging stations storing energy from rooftop solar to reduce grid draw
- Rural microgrids using second-life EV batteries to power villages after sunset
Challenges & Opportunities
Despite their potential, there is some way to go for both models:
- High Capital Cost—While battery prices are declining, the upfront investment can still be prohibitively expensive for many consumers.
- Lack of Available Monetization Models—This is especially true for BTM users who wish to generate revenue by providing grid services or engaging in peer-to-peer energy sharing.
- Safety and Recycling Concerns—There is a safety concern around poor-quality batteries entering the Australian market, as well as environmental damage from a lack of recycling infrastructure.
- Policy Gaps—Policy development around new and existing regulations for grid integration, payment of compensation, and energy arbitrage is still emerging.
However, the opportunities far outweigh the challenges. India’s growing electric mobility sector, industrial decarbonization push, and digital grid modernization all point toward massive potential for both FTM and BTM adoption. Innovations such as virtual power plants (VPPs) that aggregate BTM systems to act like grid-scale assets are already being tested in markets like Australia and the US, and India could follow suit.
The clean, smart, and resilient transition of the power system is dependent on how energy storage is deployed at all levels. FTM storage will enable overall grid stability and renewable scaling. BTM storage will empower end-users, drive down fossil fuel reliance, and enable true energy democratization.
India will not need to choose between FTM or BTM. Developing a hybrid approach that privileges the merits of both models will be vital to developing a ready energy ecosystem in the future. With favorable policy, declining costs, and an innovative ecosystem, India’s journey to become a global leader in decentralized energy storage economic models has already begun.
The meter might separate them physically, but in the future of energy, BTM and FTM are on the same side: powering a sustainable India.
