Time and Location: What Matters Most When Valuing Distributed Energy Resources

The Role and operation of the U.S. electric power system is changing as a result of policy incentives, technological improvements, and consumer choices in technology and service. Consumers have increasing choice and control over their electricity service. The range of choice is diverse: owning or leasing on-premises generating systems [such as solar photovoltaic (PV), wind, and combined heat and power systems], subscribing to services with dynamic pricing and undertaking energy efficiency measures to save money by controlling electricity use, and using storage devices to manage when and how they consume grid-supplied electricity. Collectively, these demand-altering measures are referred to as distributed energy resources (DERs).