Distributed Energy Resources (DER)

Distributed Energy Resources (DER) are decentralized power sources like solar, batteries, and EV chargers that generate or store energy near the point of use. Learn how DER supports grid resilience and efficiency.

Definition of Distributed Energy Resources (DER)

Distributed energy resources (DER) are small-scale power generation and energy storage systems located close to where electricity is consumed, rather than at centralized power plants. These resources generate, store, or manage electricity at the distribution level of the grid.

Common examples of DER include solar panels, wind turbines, battery energy storage systems (BESS), electric vehicles (EVs), microgrids, and demand response systems.

DER enables a more decentralized, flexible, and resilient energy ecosystem.

How do distributed energy resources work?

Distributed Energy Resources operate by generating or storing electricity locally and either consuming it onsite or exporting excess energy back to the grid.

A typical DER setup may include:

  • Onsite generation (eg rooftop solar)
  • Energy storage systems (eg batteries)
  • Smart inverters and power conversion systems
  • Energy management systems (EMS)
  • Grid interconnection controls

These components allow energy to flow dynamically between the grid and end users, improving efficiency and reliability.

Why are distributed energy resources important?

DER plays a critical role in modern energy systems by:

  • Reducing reliance on centralized power plants
  • Supporting renewable energy integration
  • Enhancing grid resilience and reliability
  • Lowering transmission losses
  • Enabling energy independence for businesses and communities

As electrification and renewable deployment increase, DER helps stabilize and modernize aging grid infrastructure.

Key types of distributed energy resources

1. Solar Photovoltaic (PV) Systems

Onsite solar generation for residential, commercial, or industrial use.

2. Battery Energy Storage Systems (BESS)

Store excess energy for later use or grid support.

3. Combined Heat and Power (CHP)

Generates electricity and captures usable heat from the same process.

4. Electric Vehicles (EVs) & Vehicle-to-Grid (V2G)

EV batteries can function as mobile distributed energy assets.

5. Demand Response Systems

Adjust electricity consumption in response to grid conditions.

Distributed energy resources vs Centralized energy

Traditional energy systems rely on large, centralized power plants transmitting electricity over long distances. In contrast:

  • Centralized systems = One-way power flow
  • DER systems = Two-way, dynamic power flow

DER transforms consumers into “prosumers” who can both consume and generate electricity.

Distributed energy resources in EV and green infrastructure

DER is foundational to EV and green infrastructure because it enables:

  • Solar-powered EV charging stations
  • Localized energy storage to reduce grid strain
  • Microgrids supporting remote or critical facilities
  • Smarter, decentralized energy networks

As EV adoption increases, DER helps ensure charging infrastructure remains scalable and reliable.

Operational challenges of managing DER

Managing distributed assets across multiple locations introduces complexity, including:

  • Monitoring asset performance remotely
  • Coordinating maintenance across sites
  • Managing spare parts and equipment lifecycles
  • Ensuring compliance with grid interconnection standards
  • Maintaining SLA performance across distributed infrastructure

Without centralized visibility, DER ecosystems can become fragmented and inefficient.

Managing distributed energy resources with CMMS & field service software

Modern CMMS and field service platforms help organizations:

  • Track DER assets across multiple sites
  • Automate preventive maintenance
  • Monitor performance and detect anomalies
  • Coordinate field technicians and service schedules
  • Maintain regulatory and compliance documentation

This ensures DER systems operate reliably, efficiently, and at scale.

Distributed energy resources: Powering the decentralized energy future

As the energy transition accelerates, Distributed Energy Resources are reshaping how electricity is generated, stored, and consumed. By decentralizing energy production and improving resilience, DER is a cornerstone of sustainable, future-ready infrastructure.