Behind-The-Meter Power (BTM) in California

California’s energy landscape is rapidly evolving as electricity demand surges, putting pressure on policymakers to balance ambitious emissions reduction goals with the need for a grid that remains affordable, reliable, and supported by firm, dispatchable power.

For manufacturers and large commercial and industrial (C&I) operators, the stakes are considerable. Rising electricity costs, grid reliability challenges, aggressive decarbonization mandates, and increasing demand for uninterrupted power are pushing organizations to rethink how they source energy.

One solution is gaining serious momentum: behind-the-meter (BTM) power generation, also known as self-generation.

What is Behind-the-Meter Power?

Behind-the-meter (BTM) power refers to electricity generated on-site, at or near a facility, rather than purchased entirely from the utility grid. These systems can include:

Natural gas generators (microturbines)
Combined heat and power (CHP) systems
Solar plus storage microgrids
Fuel cells
Battery energy storage systems (BESS)

Unlike traditional grid dependence, BTM systems give organizations direct control over their energy production, cost structure, and reliability.

California is Driving the Seismic Power Shift to Self-Generation

California presents a unique combination of challenges that make self-generation not just attractive, but increasingly necessary:

High and Volatile Energy Costs. California consistently ranks among the highest electricity prices in the United States. Time-of-use pricing, demand charges, and peak pricing events can make energy costs unpredictable and difficult to manage, especially for energy-intensive operations.
Grid Reliability Concerns. Wildfires, extreme weather, and aging infrastructure have led to Public Safety Power Shutoffs (PSPS) and unplanned outages. For facilities that cannot afford downtime—like advanced manufacturing plants, even a short interruption can mean significant financial losses.
Electrification and Load Growth. State policies are pushing electrification across transportation, buildings, and industry. This growing demand is placing additional strain on an already stressed grid.
Aggressive Decarbonization Goals. California’s push toward carbon neutrality requires organizations to reduce emissions while maintaining operational performance, which is no small task for energy-intensive sectors.

The Case for Self-Generation for Large Commercial and Industrial Applications

Several factors make self-generation a compelling option in California.

Cost Control and Predictability. Behind-the-meter generation allows organizations to hedge against volatile utility pricing. By producing power on-site, facilities can:

Reduce peak demand charges
Avoid high time-of-use rates
Stabilize long-term energy costs

For large energy users, this can translate into millions in savings over the long term.

Reliability and Resilience. Self-generation ensures that critical operations continue, even when the grid does not.

For example:

Manufacturers avoid costly production shutdowns
Commercial facilities maintain tenant operations and safety systems

When paired with microgrid controls and energy storage, BTM systems can seamlessly island from the grid during outages.

Energy Efficiency Gains. Technologies like combined heat and power(CHP) significantly improve energy efficiency by capturing and reusing waste heat for:

Process heating
Steam generation
Space heating or cooling

This can push total system efficiency above 70–80%, compared to ~50% or less for traditional grid power.

Decarbonization Without Compromise. Self-generation doesn’t have to conflict with sustainability goals. In fact, it can accelerate them.

Organizations can deploy:

Renewable generation (solar, biogas)
Low-carbon fuels (renewable natural gas, hydrogen blends)
High-efficiency systems that reduce overall emissions

BTM systems also provide a stable platform for integrating intermittent renewables. Natural gas powered turbine generators are often cleaner than most power grids.

Faster Deployment vs. Grid Upgrades. In many parts of California, new or expanded facilities face long interconnection timelines and costly utility upgrades.

Behind-the-meter solutions can:

Reduce reliance on grid interconnection capacity
Enable faster project timelines
Support expansion without waiting years for utility approvals

Self-generation Benefits for Large Commercial and Industrial Applications

Manufacturing. Manufacturers rely on consistent, high-quality power for automation, robotics, and process systems. Even brief disturbances can halt production or damage equipment.

Self-generation provides:

Voltage and frequency stability
Reduced downtime risk
Lower operating costs

CASE STUDY: CHP for Precision Medical Manufacturing – Applied Medical Resources

Commercial Real Estate. Office buildings, campuses, and mixed-use developments benefit from:

Lower operating expenses
Improved tenant satisfaction
Enhanced ESG performance

BTM systems can also support EV charging infrastructure and building electrification.

CASE STUDY: [QUINNIPIAC UNIVERSITY]

Industrial Operations. Refineries, processing plants, and heavy industry require both electricity and thermal energy, making them ideal candidates for CHP and hybrid systems.

Benefits include:

High efficiency
Reduced emissions intensity
Improved process reliability

Incentives Supporting Self-Generation in California

California’s Self-Generation Incentive Program (SGIP) can play a role in improving project economics. The SGIP provides financial incentives for distributed energy resources.

SGIP incentives are available for both energy Generation and Storage technologies. Natural gas turbines are eligible technologies subject to certain stipulations. CHP projects using the Flex Turbine® may be eligible for SGIP incentives.

Why FlexEnergy Natural Gas Turbines are Perfect for California

FlexEnergy’s turbine-based systems are engineered for industrial and manufacturing environments, where reliability and efficiency are non-negotiable.

Industry-Leading Uptime and Proven Reliability. The Flex Turbine fleet had demonstrated 99%+ mechanical availability, backed by an enviable track record of more than 4 million runtime hours.

Advantages:

Only one eight-hour scheduled maintenance interval annually.
We are the OEM with service support available regionally – no middleman for fast problem resolution.
Fewer moving parts (compared to reciprocating engines) means less maintenance, fewer breakdowns, and more uptime.

Wide Fuel Tolerance. The Flex Turbine maintains clean, efficient performance across a broad spectrum of gas qualities:

~350 Btu/scf to ~2500 Btu/scf.
Sour Gas tolerant; 15,000 ppm by mass H2S.
Acid Gas tolerant.
Can burn up to 5% hydrogen – 100% expected by 2025

Rapid Deployment and Grid independence. Many manufacturing plant projects face multi-year delays for electrical upgrades, transformer additions, or new substation construction. FlexEnergy turbine CHP systems can be deployed in weeks, not years – delivering immediate relief from grid constraints.

Scalable and Modular: FlexGrid Microgrids. Beyond single-unit deployment, we offer the FlexGrid microgrid solution:

For existing facilities: supplement or island from the utility to improve resilience.
For new projects: build a custom, scalable CHP microgrid aligned with facility expansion.

Our FlexGrid microgrids can scale up from 200kW to ~10 megawatts, as needed.

Flex Turbine® Product Options

GT333S Microturbine (approximately 333 kW) – suited for smaller manufacturing operations, facilities, and distributed R&D campus loads requiring CHP.
GT2000S Gas Turbine Generator (Siemens-powered) – up to ~2 MW for larger operations, district-energy systems, central plants, and manufacturing campuses needing multi-MW CHP.

The Flex Turbine® Secures CARB Recertification

Importantly, the Flex Turbine operates cleaner than utility grids. For instance, according to the most recent eGRID data for 2023, the CAMX grid serving California emits 0.392 pounds of NO_x per MWh annually – nearly double the 0.210 pounds per MWh generated by the Flex Turbine.

The chart below illustrates 2023 NO_x emissions for U.S. utility grids as compared to the Flex Turbine.

For organizations with emissions performance goals, carbon-reduction plans, and/or permitting constraints, a Flex Turbine powered system delivers major compliance and sustainability advantages.

The Strategic Advantage of BTM Power in California

Behind-the-meter power is no longer just a backup plan, it’s a strategic asset.

Organizations that invest in self-generation gain:

Energy independence
Operational resilience
Cost competitiveness
Regulatory flexibility

In California’s evolving energy environment, these advantages can define long-term success.

Is Now the Time to Act?

For many organizations, the answer is yes.

Advancements in distributed energy technologies, combined with California’s regulatory and economic pressures, have created a tipping point. Self-generation is no longer reserved for niche applications, it’s becoming a mainstream solution for forward-thinking operators.

Take Control of Your Energy Strategy

California’s grid will continue to evolve, but uncertainty around cost, capacity, and reliability is likely to persist. Behind-the-meter power gives organizations the ability to take control—turning energy from a liability into a competitive advantage.

For manufacturers and C&I operators, self-generation isn’t just an option—it’s a smarter way forward.

Call FlexEnergy Solutions today at +1 (720) 826-0708 or contact us online to schedule a self-generation strategy consultation.

Behind-the-Meter

California Self-Generation Options for Large Commercial and Industrial