Distributed Energy Resources Could Avoid $614 Billion in US Power System Costs by 2050
A new report from The Brattle Group and The Pew Charitable Trusts suggests that expanding Distributed Energy Resources (DERs)—such as solar, battery storage, and managed EV charging—could save the US power system over $614 billion through 2050. By integrating these resources into utility planning, the study estimates that DER capacity could quadruple, adding more than 400 GW to the grid. This expansion would help mitigate rising electricity costs for households by offsetting approximately half of projected bill increases. The report highlights that addressing policy barriers in distribution system planning, permitting, and interconnection processes could account for $266 billion in avoided costs. Furthermore, increased DER deployment offers a hedge against demand uncertainty; if actual load growth is lower than expected, the ability to leverage distributed resources could reduce the costs associated with overbuilding conventional infrastructure by $33 billion between 2030 and 2040.
Topics: distributed energy resources electricity costs energy affordability grid modernization renewable energy policy