Power Solutions

A few peak hours can set your capacity costs for the entire year.

On-site generation and BYOP put those hours — and your exposure to market price spikes — back under your facility's control. Own your power the way you own your production line.

On-site natural gas generation units at an industrial facility

Why capacity charges bite

One afternoon in July can cost you the rest of the year.

Most regional capacity markets set your facility's demand tariff not on your average load, but on your usage during a small handful of system-wide peak hours — often just four to five hours across the entire year, typically on the hottest summer afternoons. Miss that window and you're locked into that rate for the next twelve months, regardless of how efficiently you run every other day. It's a narrow, predictable exposure that most facilities never actively manage — they just absorb it.

~5 hrs of peak load can set a full year of capacity charges
12 mo that rate applies once it's locked in
“PJM, ERCOT, and most regional transmission organizations calculate a facility's capacity obligation from its contribution to a small number of coincident system peaks — the '5CP' or '1CP' methodology used across most U.S. wholesale markets.”

Source: regional transmission organization tariff filings (PJM, ERCOT capacity market documentation)

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Engineer inspecting a substation transformer against the sky
Heavy machinery running on a factory floor served by on-site generation

How it works

On-site generation and BYOP, explained plainly

On-site generation means installing gas- or diesel-fired generators, a CHP (combined heat and power) unit, or in some cases solar-plus-storage, on your own property — sized to carry your facility through the hours when grid capacity pricing and market prices spike. Rather than pulling every kilowatt from the utility during that window, you run on your own equipment, and the meter simply sees a lower draw during the hour that sets your rate.

BYOP — Bring Your Own Power — is the contractual and interconnection framework that lets a large facility own, lease, or co-locate that generation behind its own meter while staying properly interconnected with the grid for backup and export. We handle the utility interconnection filings, the protective relay design, and the market registration so your on-site asset counts where it needs to count — during curtailment events, demand response calls, and capacity-setting peaks.

See it in practice

When it makes sense

Four profiles where on-site power pays for itself

On-site generation and BYOP aren't right for every account. They earn their cost when a facility carries real peak exposure, real downtime risk, or both.

High-load manufacturing Capacity-driven

Continuous shift operation · demand consistently above 2 MW · sensitive to capacity tag charges

Get a facility assessment

Cold storage & food processing Resilience-driven

Product loss risk during outages · refrigeration load runs around the clock · regulatory temperature logs

Get a facility assessment

Data centers & critical facilities Uptime-driven

Zero-tolerance for unplanned downtime · existing backup generation that could be monetized · demand response eligible

Get a facility assessment

Multi-site industrial portfolios Portfolio-driven

Several accounts across one or more utility territories · appetite to standardize a BYOP program across sites

Get a facility assessment

Getting there

From load study to live generation

A BYOP program is an engineering project first and a contract second. Here's the sequence we run with every facility.

Step 1

Load & peak analysis

We pull twelve months of interval data and map your facility's contribution to the region's coincident peaks, so we know exactly which hours matter and how much capacity you'd need to shave them.

Step 2

Generation sizing & economics

We model generator, CHP, or storage options against your load profile and current tariff, then build a payback case that separates capacity savings, energy savings, and resilience value.

Step 3

Interconnection & permitting

We file the utility interconnection application, coordinate protective relay and switchgear design, and manage local permitting so the install clears every gate the first time.

Step 4

Commissioning & market registration

Once the asset is live, we register it for demand response and capacity market participation where eligible, and hand you a dispatch protocol your operations team can run without us in the room.

Proof, not promises

Facilities that put this to work

A closer look at how on-site generation and BYOP programs played out for facilities like yours.

Capacity tag reduction at a cold storage plant

Case study · Cold storage · BYOP

How a 24/7 refrigeration facility sized on-site generation to its five highest-risk hours and cut its capacity tag without touching production.

Read the case study

CHP payback for a multi-shift manufacturer

Case study · Manufacturing · On-site generation

The load study, sizing model, and interconnection path that got a combined heat and power unit online inside one budget cycle.

Read the case study

How capacity markets actually set your rate

Energy Insights · Power solutions

A plain-English walkthrough of the peak-hour methodology utilities use to price the next twelve months of your bill.

Read on Energy Insights

Ready to put those hours back under your control?

Call (855) 734-4110 and we'll walk your load data and current tariff before recommending anything.