Core Insights - The integration of distributed energy resources (DERs) such as solar, wind, batteries, and electric vehicles is crucial for the energy transition, requiring modernization of infrastructure and new market rules to manage two-way power flow [1] - The deployment of DERs is influenced by federal, state, and local policies, with incentives like tax credits and renewable portfolio standards promoting their growth [1] - The commercial and industrial (C&I) sector is increasingly adopting DERs based on economic viability, sustainability, and resiliency, with a notable shift towards onsite solar and hybrid battery storage systems [2] Group 1: Market Trends and Growth - C&I rooftop solar has experienced a growth rate of 12% annually over the last five years, with an anticipated growth of 18% in 2024, driven by project cost reductions and supportive policies [2] - The installed capacity of utility-scale battery storage reached 28 GW by the end of Q1 2025, with significant concentration in Texas, California, and Arizona [3] - The market for battery energy storage systems is expected to see increased investment and deployment, with growth dependent on supportive power market frameworks and technology innovations [3] Group 2: Regulatory Environment - Federal policies enable DERs to access tax credits and wholesale markets, while state-level regulations like renewable portfolio standards and net metering provide essential incentives [1] - Collaboration between utilities and third-party aggregators is encouraged to alleviate grid constraints and enhance the deployment of DERs [3] - States with policies promoting community solar and utility partnerships are seen as having growing opportunities for expanding DERs and improving grid resiliency [3]

Core Insights - Distributed Energy Resources (DERs) are increasingly recognized for their ability to enhance grid reliability and resilience, particularly during peak load periods, thereby reducing the risk of brownouts and blackouts [2][3] - The integration of advanced technologies, including artificial intelligence (AI) and vehicle-to-grid (V2G) systems, is facilitating the optimization of energy consumption and the deployment of DERs [6] Group 1: Benefits of DERs - Utilities can benefit from Demand Response (DR) and Demand-Side Management (DSM) by lowering operational costs and avoiding expensive peaker plants, while also providing potential equity ownership opportunities for customers [1] - DERs support peak-shaving and improve overall reliability, with virtual power plants (VPPs) effectively managing load resources to respond to grid conditions [1][2] - The global market for battery energy storage systems (BESS) is projected to grow to over $120 billion to $150 billion by 2030, with more than $30 billion expected in the U.S. alone [4] Group 2: Role of Microgrids - Microgrids are essential for deploying DERs, offering real-time monitoring and rapid response capabilities to grid events, thereby enhancing overall performance [3][4] - San Diego Gas & Electric has launched four microgrids to improve grid reliability, demonstrating the practical application of energy storage in supporting critical infrastructure [3][4] Group 3: Advanced Technologies - Advanced technologies such as smart thermostats and electric water heaters are crucial for managing energy consumption based on grid conditions, promoting the adoption of DERs [6] - Vehicle-to-grid (V2G) technology allows electric vehicles to act as mobile distributed energy resources, providing power back to the grid during peak demand periods [6]