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Consumers Energy Trade Ally · Davisburg, Michigan
What Are Distributed Energy Resources (DER)?

Article · April 4, 2025

What Are Distributed Energy Resources (DER)?

DER refers to on-site energy generation and storage systems that operate independently or in conjunction with the power grid. Types of DER Systems: Learn More About Microgrids How DER Benefits…

DER refers to on-site energy generation and storage systems that operate independently or in conjunction with the power grid.

Types of DER Systems:

  • Solar PV Systems – Generate clean electricity and reduce dependence on grid power.
  • Battery Energy Storage – Store excess energy for later use, improving efficiency and reducing peak demand costs.
  • Co-Generation (CHP) – Simultaneously produce electricity and heat for industrial processes.
  • Microgrids – Autonomous power networks that integrate multiple energy sources.

Learn More About Microgrids

How DER Benefits Businesses

1. Reduce Electricity Costs

  • Generates low-cost renewable energy on-site.
  • Lowers peak demand charges through battery storage and load management.
  • Allows businesses to sell excess power back to the grid.

2. Improve Energy Reliability & Blackout Protection

  • Ensures power supply during grid failures or blackouts.
  • Microgrids allow facilities to operate independently when needed.
  • Provides backup power for critical operations.

3. Enhance Sustainability & Carbon Reduction

  • Helps businesses meet sustainability goals and reduce carbon footprint.
  • Qualifies for government incentives and renewable energy credits.

Case Study: A large industrial plant installed a solar + battery storage system, reducing electricity costs by 40% while eliminating downtime from power outages. (Read More)

How to Implement a DER Strategy

Step 1: Assess Energy Needs

  • Conduct an energy audit to analyze current usage and peak demand patterns.
  • Identify opportunities for on-site generation and storage.

Step 2: Choose the Right DER Technologies

  • Solar + Battery Storage for cost savings and peak load reduction.
  • Co-Generation (CHP) for high-energy industries needing heat and power.
  • Microgrids for full energy autonomy and grid independence.

Step 3: Optimize & Monitor Performance

  • Use energy management systems (EMS) to track generation and consumption in real-time.
  • Continuously adjust system performance for maximum efficiency.

Final Thoughts: Take Control of Your Energy Future

Businesses that invest in Distributed Energy Resources gain a competitive advantage by lowering costs, improving reliability, and securing their energy future.

Are you ready to cut energy costs and improve resilience? Contact EDE today for a customized DER strategy.

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