The Opportunity

A rapidly growing number of building owners are installing solar and battery storage systems on homes and commercial and industrial buildings to improve resiliency, reduce costs, and limit greenhouse gas emissions.

The Challenge

Increased DER deployment creates challenges and opportunities for distribution utilities, grid operators and wholesale electricity markets. On distribution systems, high levels of solar generation can push line voltage outside of required operating ranges. Grid operators have concerns about DER operations during frequency and voltage dips and would like more visibility into DER operations, and their potential impact on wholesale markets. Wholesale markets could benefit from aggregated DERs that provide grid services, if a number of regulatory and operational issues can be solved.

Solutions

A new generation of smart inverters, compliant with IEEE 1547-2018, will be broadly available by the end of 2021. These inverters have voltage control, ride-through and communications capabilities that can help address the full range of grid operation challenges and opportunities.  Utility regulators in a few states have begun the process of determining detailed smart inverter configurations that will work best in their jurisdictions, but many more need to complete that work by the end of 2021 to gain the maximum advantage of this technology for their jurisdictions.