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American Focus > Blog > Environment > How Can Distributed Energy Resources Support Energy Justice?
Environment

How Can Distributed Energy Resources Support Energy Justice?

Last updated: June 10, 2025 6:31 am
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How Can Distributed Energy Resources Support Energy Justice?
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Energy justice is a critical issue that demands attention in today’s society. Historically marginalized communities, including BIPOC and low-income individuals, often face disproportionate challenges when it comes to accessing clean, affordable, and reliable energy. These communities are more likely to live in areas that are disaster-prone, with under-invested infrastructure and closer to polluting energy facilities like power plants. To address these disparities, a focus on energy justice is essential. Energy justice revolves around the principle that access to energy that meets these criteria is a basic right, and historically marginalized communities should have greater control over both the systems and the decision-making process surrounding energy procurement and management.

One way to achieve energy justice is through the use of distributed energy resources (DERs). DERs are assets like rooftop solar systems, backup batteries, and microgrids that are distributed on the grid and can be owned and operated within the communities where energy is needed. These resources provide local control over energy generation and consumption, which is essential for promoting energy justice. Additionally, DERs can contribute to a resilient and reliable energy system by enhancing the grid’s overall stability and reducing the need for expensive, polluting infrastructure.

However, despite the benefits that DERs offer, there are still significant barriers to accessibility for BIPOC and low-income communities. These barriers include cost-based obstacles, socioeconomic disparities, and historical inequities that have limited access to clean energy solutions. For example, lack of access to capital, challenges in securing loans, and disparities in housing quality all contribute to the difficulty that underserved communities face in adopting DERs. There is also a systemic mistrust between communities and utilities, as well as a lack of effective communication and engagement between utilities and DER companies.

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The structure of the utility industry itself can also be a barrier to accessibility for DERs in BIPOC and low-income communities. For-profit, monopoly, investor-owned utilities often prioritize their own profits over the needs of underserved communities, creating additional challenges for those seeking to install DERs. Community microgrids, which empower communities to build and operate their own electrical infrastructure, pose a threat to the traditional utility business model and are not currently allowed to freely enter the market in most states.

Despite these challenges, there are solutions available to address the lack of accessibility and leverage DERs for achieving energy justice. Programs can provide dedicated funding and loan structures for low-income households, while affordable housing initiatives can include DERs and VPP enrollment in subsidized housing costs. Overcoming socioeconomic and historical barriers will require a concerted effort from utilities, regulators, policymakers, and advocates to center community voices, redesign programs with equity at the core, and disrupt outdated utility structures.

In conclusion, DERs have the potential to transform the grid into a system that centers energy justice and serves all members of society, regardless of race, income, or location. By working together to address barriers to accessibility and promote equity in energy access, we can ensure that no one is left behind in the transition to a more just and sustainable energy future.

TAGGED:DistributedEnergyJusticeResourcessupport
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