Energy systems
Front-of-the-Meter Solar
Definition
Front-of-the-meter (FTM) solar refers to photovoltaic installations sited on the utility side of the customer meter — such as solar farms and power-plant-scale arrays — that generate electricity for delivery to the grid. It contrasts with behind-the-meter (BTM) systems installed on the customer's side, which primarily serve on-site consumption.
References
definition and market split
Overview
What it means
The meter boundary defines different market models, regulation, and revenue streams. FTM projects earn revenue from wholesale markets, power purchase agreements, or feed-in tariffs, and are treated as generation assets by grid operators, whereas BTM systems interact with retail tariffs and net-metering rules.
How it is used
Developers, utilities, and regulators use the FTM/BTM distinction to classify projects, design interconnection and compensation rules, and segment the solar market in capacity statistics and forecasts.
Why it matters
As distributed solar grows, the distinction shapes tariff design, grid planning, and debates over who pays for network costs — central questions in the politics of the energy transition.