GLOSSARY

The ongoing monitoring, reporting, maintenance coordination, and financial oversight of renewable energy systems after they have been installed. Effective asset management helps maximize energy production, extend equipment life, identify issues early, and ensure systems continue delivering expected financial returns. Learn More

Energy equipment installed on the customer’s side of the utility meter, such as solar panels or battery storage. Behind-the-meter systems help reduce utility costs by generating or storing electricity directly at the property before power is purchased from the utility.

A Battery Energy Storage System (BESS) stores electricity for use when it provides the greatest financial or operational value. Depending on the market, batteries can reduce demand charges, shift energy use to lower-cost periods, participate in utility incentive programs, generate new revenue streams, and provide backup power during outages. Learn More

The process of replacing fossil fuel-powered building systems—such as natural gas heating or water heating—with electric alternatives. Electrification is becoming increasingly important as utilities, municipalities, and building performance standards encourage lower-carbon buildings.

In some regions, utilities and grid operators pay qualified energy resources, including battery storage, for being available to supply electricity when demand is highest. Participation in capacity markets can create additional revenue opportunities for battery storage projects.

A financing mechanism available in many states that allows qualifying energy improvements to be repaid through a property tax assessment over an extended period. C-PACE can reduce upfront capital requirements for eligible renewable energy projects.

Many commercial utility bills include charges based not only on total electricity consumed but also on the highest level of electricity demand during a billing period. Demand charges often represent a significant portion of commercial electric bills and can frequently be reduced through battery storage or energy management strategies. Learn More

Programs offered by utilities or grid operators that compensate building owners for temporarily reducing electricity usage during periods of high grid demand. Automated battery systems are increasingly being used to participate in these programs.

Distributed Energy Resources are smaller energy systems located near where electricity is consumed rather than at large centralized power plants. Examples include solar panels, battery storage, EV charging infrastructure, and microgrids. Learn More

A financing model that allows building owners to receive the benefits of renewable energy systems without purchasing the equipment outright. Depending on the structure, the provider finances, owns, operates, and maintains the system while the customer pays through service fees or shares in generated savings.

A building’s ability to continue operating during utility outages or grid disruptions. Renewable energy systems combined with battery storage can improve resilience by providing backup power for critical building functions or, in some cases, entire facilities.

Technology that captures electricity for later use. Battery energy storage is currently the most common commercial storage technology and can improve financial performance, operational flexibility, and resilience.

A framework many investors, lenders, and organizations use to evaluate environmental responsibility, social impact, and governance practices. Renewable energy projects often support ESG goals by reducing emissions, improving operational efficiency, and demonstrating long-term sustainability planning.

A federal tax incentive that may significantly reduce the cost of qualifying renewable energy projects. Eligibility, credit amounts, and project requirements evolve over time, making careful planning important when evaluating project economics.

Services provided by energy resources that help maintain the reliability and stability of the electrical grid. In some markets, battery storage systems can generate revenue by providing services such as frequency regulation, reserve capacity, or demand response.

A financial metric used to estimate the profitability of an investment over time. IRR is commonly used to compare renewable energy projects with other investment opportunities.

The average cost of producing electricity from an energy system over its lifetime, including installation, maintenance, financing, and operating costs. LCOE is frequently used to compare different energy technologies.

Strategies that reduce or shift electricity consumption during periods of high demand. Load management can lower utility costs and improve the economics of battery storage systems.

The practice of storing electricity or changing when energy is used so that less electricity is purchased during expensive peak periods. Battery storage makes load shifting possible without disrupting building operations.

A localized energy system that can operate either with or independently from the utility grid. Microgrids often combine solar, battery storage, backup generation, and advanced controls to improve resilience and reliability.

The income generated by a property after operating expenses but before financing costs and taxes. Reducing utility expenses through renewable energy improvements can increase NOI and potentially enhance property value.

The highest level of electricity consumption reached by a building during a billing period. Utilities often base demand charges on this peak usage, making peak demand reduction a major opportunity for commercial facilities.

Using battery storage or operational controls to reduce a building’s highest electricity demand. Peak shaving is one of the most common ways commercial battery systems lower utility bills.

A long-term agreement in which a third party finances, owns, and operates a renewable energy system while the property owner purchases the electricity it produces at an agreed-upon rate. PPAs often require little or no upfront capital investment. Learn More

A comprehensive evaluation of how renewable energy technologies can support an organization’s financial, operational, and sustainability goals. Rather than focusing on individual technologies, a renewable energy strategy identifies the solutions that provide the greatest long-term value across an entire property or portfolio. Learn More

The ability of a building to maintain critical operations during disruptions such as utility outages, severe weather, or grid instability. Depending on system design, battery storage can provide backup power ranging from essential systems to entire facilities.

A measure of how much financial benefit an investment generates relative to its cost. Renewable energy projects are often evaluated based on expected utility savings, incentives, operational benefits, and long-term asset value.

Technology that converts sunlight directly into electricity using photovoltaic panels. Solar PV is the most common form of commercial onsite renewable energy generation.

Electricity pricing that varies depending on the time of day. Energy consumed during periods of high demand is typically more expensive than energy used during off-peak hours. Battery storage can help reduce costs under TOU rate structures by storing lower-cost electricity and using it during expensive periods.

Financial programs offered by utilities or state agencies to encourage adoption of renewable energy and battery storage technologies. Incentives may include rebates, performance payments, grants, or participation in demand response and grid service programs.

A network of distributed energy resources—such as batteries, solar systems, and smart building controls—that operate together to support the electric grid. Building owners in some markets can earn revenue by allowing qualified battery systems to participate in virtual power plant programs. Learn More