States Across America Taking Bold Steps to Enhance Distributed Energy Resources Solutions
In a time when the demand for energy in the United States continues to soar—fueled by the rapid development of artificial intelligence data centers, a surge in domestic manufacturing, and the widespread electrification of transport—various states are actively seeking innovative strategies to alleviate pressure on their energy grids. The Pew Charitable Trusts, through its energy modernization project, has highlighted the increasing adoption of distributed energy resources (DERs) as a viable solution to this challenge.
Understanding Distributed Energy Resources
Distributed energy resources encompass a range of technologies, including rooftop solar panels, battery storage solutions, and smart home appliances, which can generate and store energy close to where it is consumed. By relying on DERs, states can not only meet energy demands but also ensure a more reliable and affordable power supply to their communities.
The Pew Charitable Trusts, in collaboration with the North Carolina Clean Energy Technology Center, has launched a State Policy Explorer—a comprehensive tool that catalogs over 400 state-level legislative actions regarding DERs enacted between 2021 and 2025. This inventory reveals a plethora of initiatives aimed at advancing the adoption and integration of DERs, such as the establishment of energy storage solutions, electric vehicle infrastructure, and microgrid development.
Innovative Legislative Measures
To facilitate the wider adoption of DERs, state legislators are implementing a variety of policies designed to incentivize participation from private individuals and businesses. These include compensation mechanisms for owners of DERs and efforts to reduce the upfront costs associated with installing these technologies. Investment support and net metering are two common approaches utilized, where individuals generating surplus energy through systems like rooftop solar can send this electricity back to the grid and receive compensation.
However, states are now exploring additional strategies beyond these foundational financial mechanisms to increase DER penetration and cater to the rising energy demand. Some notable advancements include:
1. Improving Grid Planning: Twenty-four states have begun to amend their legislation to better integrate DERs into utility planning and investment frameworks. Through such laws, utilities are permitted to propose incentive programs encouraging residential DER installations like energy storage and smart thermostats. For instance, South Carolina’s H.B. 3309 enables utilities to proactively plan for and integrate DERs, while Kansas and Michigan have introduced measures to augment the energy sourced from DERs.
2. Establishing Procurement Targets: To further encourage DER deployment, twelve states are now setting specific targets for their adoption. An intelligence example comes from Rhode Island, which has established an ambitious energy storage target of 885 MW by 2033. Similarly, plans in North Carolina and New Jersey prioritize third-party solar engagements and expand community solar programs, respectively, ensuring a diverse mix of energy resources.
3. Enhancing Energy Resilience: In response to the increasing frequency of severe weather events, lawmakers across 24 states are promoting initiatives like microgrids, which provide contingency energy sources for critical infrastructure, ensuring resilience during outages. For instance, Tennessee and Idaho have launched commercial property-assessed clean energy programs focusing on energy upgrades, while Texas utilizes funding to enhance backup power solutions for essential facilities.
4. Simplifying Permitting Processes: Lengthy and complicated permitting processes have often posed barriers for commercial DER projects. In response, Colorado’s legislature has passed measures to streamline the permitting for EV charging systems and residential solar applications, making it easier for individuals to adopt renewable energy technologies.
5. Streamlining Interconnection: A crucial way to facilitate the integration of DERs is through the simplification of grid connections. Vermont and Illinois have taken steps to enhance the interconnection process for energy storage facilities and establish working groups to address challenges in distribution system upgrades.
Conclusion
The active engagement by various states in promoting DERs embodies a pivotal shift in energy policy aimed at fostering resilience, diversifying energy sources, and ensuring more sustainable and reliable energy systems. By reviewing the plethora of laws within the State Policy Explorer, decision-makers can glean insights and strategies being embraced nationwide to bolster energy resiliency, minimize costs for consumers, and broaden energy access through the proliferation of distributed energy resources. More information regarding these innovative legislative efforts can be accessed via the Pew Charitable Trusts’ Energy Modernization hub.
For further inquiries, contact Matt Herbert at [email protected] or call 605-759-8911 for additional information on advancing energy solutions as communities adapt to current needs and challenges.
Understanding Distributed Energy Resources
Distributed energy resources encompass a range of technologies, including rooftop solar panels, battery storage solutions, and smart home appliances, which can generate and store energy close to where it is consumed. By relying on DERs, states can not only meet energy demands but also ensure a more reliable and affordable power supply to their communities.
The Pew Charitable Trusts, in collaboration with the North Carolina Clean Energy Technology Center, has launched a State Policy Explorer—a comprehensive tool that catalogs over 400 state-level legislative actions regarding DERs enacted between 2021 and 2025. This inventory reveals a plethora of initiatives aimed at advancing the adoption and integration of DERs, such as the establishment of energy storage solutions, electric vehicle infrastructure, and microgrid development.
Innovative Legislative Measures
To facilitate the wider adoption of DERs, state legislators are implementing a variety of policies designed to incentivize participation from private individuals and businesses. These include compensation mechanisms for owners of DERs and efforts to reduce the upfront costs associated with installing these technologies. Investment support and net metering are two common approaches utilized, where individuals generating surplus energy through systems like rooftop solar can send this electricity back to the grid and receive compensation.
However, states are now exploring additional strategies beyond these foundational financial mechanisms to increase DER penetration and cater to the rising energy demand. Some notable advancements include:
1. Improving Grid Planning: Twenty-four states have begun to amend their legislation to better integrate DERs into utility planning and investment frameworks. Through such laws, utilities are permitted to propose incentive programs encouraging residential DER installations like energy storage and smart thermostats. For instance, South Carolina’s H.B. 3309 enables utilities to proactively plan for and integrate DERs, while Kansas and Michigan have introduced measures to augment the energy sourced from DERs.
2. Establishing Procurement Targets: To further encourage DER deployment, twelve states are now setting specific targets for their adoption. An intelligence example comes from Rhode Island, which has established an ambitious energy storage target of 885 MW by 2033. Similarly, plans in North Carolina and New Jersey prioritize third-party solar engagements and expand community solar programs, respectively, ensuring a diverse mix of energy resources.
3. Enhancing Energy Resilience: In response to the increasing frequency of severe weather events, lawmakers across 24 states are promoting initiatives like microgrids, which provide contingency energy sources for critical infrastructure, ensuring resilience during outages. For instance, Tennessee and Idaho have launched commercial property-assessed clean energy programs focusing on energy upgrades, while Texas utilizes funding to enhance backup power solutions for essential facilities.
4. Simplifying Permitting Processes: Lengthy and complicated permitting processes have often posed barriers for commercial DER projects. In response, Colorado’s legislature has passed measures to streamline the permitting for EV charging systems and residential solar applications, making it easier for individuals to adopt renewable energy technologies.
5. Streamlining Interconnection: A crucial way to facilitate the integration of DERs is through the simplification of grid connections. Vermont and Illinois have taken steps to enhance the interconnection process for energy storage facilities and establish working groups to address challenges in distribution system upgrades.
Conclusion
The active engagement by various states in promoting DERs embodies a pivotal shift in energy policy aimed at fostering resilience, diversifying energy sources, and ensuring more sustainable and reliable energy systems. By reviewing the plethora of laws within the State Policy Explorer, decision-makers can glean insights and strategies being embraced nationwide to bolster energy resiliency, minimize costs for consumers, and broaden energy access through the proliferation of distributed energy resources. More information regarding these innovative legislative efforts can be accessed via the Pew Charitable Trusts’ Energy Modernization hub.
For further inquiries, contact Matt Herbert at [email protected] or call 605-759-8911 for additional information on advancing energy solutions as communities adapt to current needs and challenges.
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