The UK’s behind-the-meter (BTM) battery energy storage market is experiencing unprecedented growth, driven by a mix of economic opportunities and infrastructure pressures. Rob Moore, Chief Business Development Officer (utility scale), explains the forces driving this growth and why it’s a trend that will continue.
With the global BTM market reaching $42.3 billion globally in 2024 and growing at 19.5% annually, the UK’s landscape for energy storage is changing.
There are three primary drivers that have led to soaring demand for BTM BESS:
Energy prices remain high and volatile, forcing businesses to seek new ways to manage costs. This volatility has pushed many companies who were previously considering alternatives to switch to behind the meter.
While BTM battery storage delivers clear value as a standalone solution for managing energy costs and grid constraints, the economics become even more compelling when co-located with solar generation.
Solar-plus-storage installations unlock additional value streams that standalone solar cannot deliver. During peak generation periods, excess solar power can be stored for later use. This time-shifting capability delivers compound benefits that justify the additional investment. For companies that invested in solar years ago, adding further solar and/or retrofitting with battery storage often represents the missing piece that unlocks the full economic potential of their renewable energy infrastructure.
A growing number of energy-intensive businesses face a critical bottleneck: continued operational growth is being held back by what their grid connection can support.
This constraint is becoming increasingly common across the UK, making BTM batteries an attractive solution. With or without on-site generation, batteries can provide the additional power capacity that enables businesses to expand operations.
Several regulatory shifts have improved the BTM landscape, but one change stands out as transformative: OFGEM’s P415 code modification. This regulatory shift now permits BTM batteries to trade in energy markets exactly like front-of-meter systems – increasing the value of behind-the-meter batteries by 400% or more in some locations.
P415’s impact cannot be overstated. BTM installations can now access wholesale markets and, through optimisers, aggregate with other suppliers to participate in larger markets above 1MW. This means batteries can generate revenue in energy markets during periods when they’re not supplying power to the host site.
P415 has fundamentally expanded the business case for BTM installations by creating multiple revenue streams where none existed before.
Unlike previous UK energy schemes driven by grants and subsidies – such as CHP or AD – today’s BTM market represents a genuine, durable value proposition. The economics work without government support.
The UK is witnessing a permanent market transformation. This isn’t a temporary spike followed by a crash. Even when the current growth moderates, demand will continue growing. Installation costs keep falling, making more sites economically viable, while electrification trends ensure growing energy demand.
Three powerful forces – volatile energy costs, grid capacity constraints, and transformative regulation – have aligned to create ideal conditions for BTM battery storage growth. With P415 unlocking new revenue streams and the fundamental economics proving sound without subsidies, this growth is built on solid foundations.
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