An Overview of Behind-the-Meter Solar-Plus-Storage Regulatory Design: Approaches and Case Studies to Inform International Applications

Behind-the-meter energy storage systems paired with distributed photovoltaic (DPV) - with the capability to act as both generation and load - represent a unique and disruptive power sector technology capable of providing a range of important services to customers, utilities, and the broader power system. How should regulators, utilities, and policymakers manage the range of challenges and opportunities that increased behind-the-meter energy storage deployment will bring to the power system, in particular when these systems are paired with DPV? This report is intended to offer key regulatory considerations for facilitating DPV-plus-storage programs for retail customers; relevant cases from U.S. states are provided as examples of how novel regulatory issues related to behind-the-meter energy storage systems paired with DPV are being addressed in practice. At a high level, designing a regulatory framework that aligns DPV-plus-storage deployment with larger policy objectives requires thoughtful deliberation across a range of technical and economic issues. While this report attempts to segment many of these issues into distinct topics to enhance reader understanding, in reality, DPV-plus-storage regulatory issues are all closely integrated, and design decisions on a single aspect often have broader implications. With that in mind, this report outlines a series of steps that can be employed by regulators to approach DPV-plus-storage regulatory design.