Behind-the-Meter Distributed Generation: Lessons from the United States

Abstract Distributed energy resources (DER) including behind-the-meter (BTM) sources are playing an increasingly important role in the energy marketplace in the United States. During the Biden Administration the Federal Government adopted several policies to encourage DER and Congress enacted a suite of tax incentives supporting DER. But the political winds changed direction with the 2024 elections. The Biden policies have not been sustainable as the Trump Administration has emphasized fossil fuel generation, the Administration has revoked policies that support distributed energy by Executive Order where it has authority to do so, and Congress has removed many of the financial incentives for deploying DER. However, many states have adopted laws and tax policies that encourage the expansion of BTM DER, the most prominent of which is California. California’s long-standing support of DER provides an excellent case study of both the opportunities and problems associated with a sustainable approach to DER. California’s experience provides important lessons learned related to each of the key elements of DER—decarbonization, digitalization, decentralization, and democratization.