Issue Area

Distributed Solar and Batteries

Overview

Distributed solar and batteries are small-scale energy resources that generate and store power close to where it’s used. These technologies — including rooftop solar, community solar, home batteries, and microgrids — help lower electricity costs, decarbonize the electric system, and increase energy reliability by making communities less reliant on centralized power systems. 

Distributed solar and batteries — along with other resources such as electric vehicles and demand response — are collectively known as Distributed Energy Resources (DERs). DERs can be aggregated and synchronized to meet large-scale energy needs, reduce strain on the grid, and provide backup power during critical periods. 

State lawmakers play a crucial role in the deployment of DERs. States set the standards for how these resources interconnect to the grid, as well as the compensation and rate designs that shape their economic value. By easing regulatory burdens, incorporating DERs into planning, and developing programs for community solar and agrivoltaics, states can support local economies while advancing clean energy goals and improving reliability.

NCEL Point of Contact
Emily Odgers

Grid Specialist

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Key Facts

The majority of American households could reduce their electricity costs by an average of 15% by installing a solar-plus-battery system, while also being able to meet at least half of their electricity needs during a power outage. Solar itself can also increase home values by approximately $15,000.

Stanford

The average community solar subscriber reduces their electricity costs by 10% over the life of their subscription. Community solar allows multiple customers, including renters, homeowners, non-profits, and business owners, to subscribe and benefit from a local solar project without panels needing to be located on their property.

WRI

Residential solar in the U.S. is up to seven times more expensive to install than in peer countries such as Australia and Germany. Much of this cost difference is a result of “soft costs” (expenses related to administrative needs, such as permitting and inspections).

Permit Power
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Resources

NCEL Resources

Online Resources

As Cheap as Our Peers | Permit Power

Examines how reducing regulatory red tape, such as siting and inspection processes, can bring U.S. rooftop solar installation costs in line with peer countries. These actions could dramatically increase solar adoption and save American households billions by 2040.

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What to know about plug-in solar | Solar United Neighbors

Overview of what plug-in solar is, its benefits, and opportunities for state legislators.

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State Policies and Programs for Community Solar | National Laboratory of the Rockies

Catalogues current state policies and programs establishing or funding community solar programs across the U.S.

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Resources | Renewable Energy Farmers of America

Resources for rural communities and farmers on the impacts, costs, and reliability of renewable energy, agrivoltaics, community solar, private property rights, and more.

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Reducing Peak Demand | Clean Energy States Alliance

Outlines best practices and considerations for state policymakers and regulators when designing state energy storage programs with the goal of reducing peak electricity demand and emissions.

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Media Contact

For more information please contact NCEL's Grid Specialist Emily Odgers

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