The POWER Interview: Grid Integration of DERs

Integrating distributed energy resources (DERs) such as solar, wind, batteries, and electric vehicles into the power grid is an important part of the energy transition. Utilities and transmission system operators know they need more flexibility when it comes to power generation and delivery, which involves modernizing infrastructure, using advanced controls, and developing new market rules to manage two-way power flow. The integration of DERs can support a more resilient supply of electricity. Coordination of smaller, local, decentralized energy sources with existing utility systems, through aggregators and digital platforms, is happening worldwide. Challenges to integrating DERs include managing intermittency, ensuring grid stability, and of course updating regulations for their use. The benefits are many, from having more control of energy costs to utilizing cleaner forms of power generation. Jerry Polacek is president of IPP Solutions at Aggreko, a global leader in providing modular energy solutions, including mobile power generation, temperature control (HVAC), and energy services for industries. Polacek, along with Michael Kushner, general manager for C&I (commercial and industrial) IPP Solutions for Aggreko, provided POWER with insight into the company’s work in support of DERs, particularly for the commercial and industrial sector. POWER: What policies and regulations affect DERs? Polacek: In the U.S., DERs are impacted by federal, state, and local policies and regulations. Prominent federal policies enable DERs to receive tax credits, set access to wholesale markets and pricing, and affect permitting. At the state level, renewable portfolio standards (RPS), net metering programs, and community solar policies provide important incentives to promote the growth of DERs. Locally, developers must understand permitting requirements and address stakeholder concerns to gain support for DERs. As a developer, we actively navigate these frameworks to accelerate deployment for C&I customers and community solar projects, ensuring compliance while maximizing incentives.

For more information about distributed energy resources and their importance across the power sector, read “Reshaping the Power Grid: Driving Resilience Through DERs” in the January 2026 issue of POWER.

POWER: What are some of the challenges related to integrating DERs into the grid?Kushner: Developers must navigate a series of challenges to successfully integrate DERs into the grid. They face long interconnection timelines and uncertain grid connection costs, variable permitting requirements, and site-specific engineering challenges. The most effective developers leverage a programmatic process and harness the team’s domain expertise across siting, engineering, development, project finance, and construction management to reliably deliver projects. Our experience shows that early engagement with utilities and proactive interconnection planning significantly reduces delays and mitigates development risks.

Jerry Polacek POWER: In light of current U.S. policy, should deployment of DERs now be focused more on natural gas or diesel generators, microturbines, fuel cells, and combined heat and power (CHP) systems, rather than on renewable energy resources?Polacek: Deployment of DERs should continue to be driven by technologies that best serve the needs of energy consumers. From our experience, C&I customers most frequently select DERs based on economics, sustainability, and resiliency. Under current U.S. policy, technologies such as onsite solar and hybrid battery storage systems continue to deliver the lowest cost energy while also supporting customers’ sustainability objectives. With the grid straining from sustained demand growth and more frequent extreme weather events, we expect energy consumers to increasingly seek DERs that offer firm capacity. Hybrid microgrids combining solar, storage, and thermal generation that Aggreko offers are an effective energy solution for consumers seeking dispatchable power supply and sustainability for mission-critical operations. POWER: What is the current and future market for rooftop solar for commercial and industrial facilities?Kushner: C&I rooftop solar has grown 12% annually over the last five years and an impressive 18% in 2024. Growth has come through substantial project cost reductions, supportive federal and state policy incentives, and customers pursuing ambitious sustainability objectives. While the changing federal policy landscape has created some headwinds it has also clarified the ongoing “beginning of construction” safe harbor of solar projects less than 1.5 MW by incurring 5% of the cost, subject to tax credit sunset provisions. We anticipate robust growth through 2026 and beyond as our C&I customers work to place in service rooftop solar projects ahead of the Dec. 31, 2027 investment tax credit expiration date.