Expanding PV Value: Lessons Learned from Utility-Led Distributed Energy Resource Aggregation in the United States

Distributed PV capacity in the United States has increased from about 0.4 Gigawatts (GW) in 2010 to 10.5 GW in 2017 (GTM Research and SEIA 2018). When distributed PV is coupled with other emerging distributed energy resources (DERs) like battery storage and electric vehicles (EVs) they can provide demand response, voltage regulation, and other grid services. When many DERs are aggregated and called upon to provide these services simultaneously they may offer the same or more value than large, centralized power producers. In the United States, utility efforts to aggregate DERs are in the nascent stage. If initial DER aggregation programs prove successful, it could open new value streams for PV and other emerging DERs, thereby expanding deployment and transforming the energy market. The literature on the scope, performance, and lessons learned from utility-led DER aggregation programs is limited. This report fills this research gap, first by surveying utility-led DER aggregation programs nationwide, and then providing a deeper analysis of five utility pilots. We compare lessons learned across the five cases to develop a list of common challenges and related solutions that other utilities might consider when developing next generation programs.