Distributed energy resource interconnection: An overview of challenges and opportunities in the United States

Decarbonizing the energy sector and electrifying buildings and transportation requires the rapid and cost-efficient build-out of solar, energy storage, demand management, and other distributed energy resources (DERs). Many jurisdictions have recognized the critical importance of DERs to the clean energy transition and are developing solutions to enable the more rapid and cost-efficient integration of DERs onto the electric grid. At the same time, as the scale and speed of DER deployment grows, more challenges are emerging, including lengthy interconnection timelines, costly grid upgrades, and regulatory and technical barriers to enabling the variety of benefits DERs can provide to the grid.

Interconnection, in particular, can pose a significant challenge to growing DER penetration. Interconnection rules and regulations spell out the procedural and technical requirements for connecting DERs to the grid. When these rules are well-designed, they can support faster and more cost-effective DER integration, but when they are outdated or poorly designed, they can slow or even halt DER growth.

This article describes some of the key challenges that U.S. states are facing with DER interconnection to the distribution system, and highlights leading solutions to address those challenges. While the article focuses on DER interconnection rules and regulations in the United States, many of the lessons learned and solutions are likely applicable to other jurisdictions that are experiencing rapid DER market growth.