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American Focus > Blog > Environment > What Are Distributed Energy Resources?
Environment

What Are Distributed Energy Resources?

Last updated: May 19, 2025 8:15 am
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What Are Distributed Energy Resources?
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The concept of a home equipped with solar panels on the roof and a battery storing excess energy for later use is becoming increasingly common in the United States. Up to 25% of new solar installations now include attached storage, providing a range of benefits beyond just the individual homeowner.

These solar+storage systems can offer economic gains through rebates or reduced utility bills, enhance public health by reducing pollution, improve safety by providing backup power for medical equipment, and contribute to environmental justice by promoting energy independence. The impact of these systems extends beyond the household to benefit the neighborhood, community, and environment at large.

To fully understand the potential of these systems, it is essential to grasp the changing landscape of the grid. The traditional grid consists of centralized power plants for generation, high-voltage transmission lines for distribution, and smaller distribution systems for delivering electricity to end-users. However, advancements in renewable energy technologies now allow for distributed generation, where power can be produced locally and shared within the community.

This shift towards distributed energy resources (DERs) has significant implications for environmental justice and energy equity. Communities can now choose cleaner power sources, reduce energy costs, achieve energy independence, and enhance local resilience. By taking control of their power sources, communities can address public health and environmental concerns while shaping a more sustainable energy future.

DERs encompass a wide range of technologies, including solar panels, batteries, generators, demand response programs, energy efficiency measures, electric vehicles, and EV chargers. These resources can work together to coordinate responses to grid conditions, either through physical integration as microgrids or virtual coordination as virtual power plants.

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As we navigate this evolving energy landscape, the focus should be on how these technologies interact with the grid and the benefits they provide. By harnessing the potential of DERs, homes, neighborhoods, and communities can contribute to reshaping the power system towards a more sustainable and equitable future. In the upcoming parts of this series, we will delve into the organization of DERs into microgrids and virtual power plants, exploring how they can support equity in the power system of tomorrow.

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