Reports of distributed energy’s demise have been greatly exaggerated, according to a 2025 survey of distributed energy and microgrid industry professionals.
When the One Big Beautiful Bill Act became law in July 2025, many industry experts feared solar-heavy distributed energy development would dry up with the loss of federal incentives. While survey respondents (67%) say the loss of federal incentives harmed them, they remain bullish about the near-term future for renewable and fossil distributed energy resources (DERs) and microgrids. In fact, our respondents anticipate growth in almost all DER technology types, with increases expected between 4% to 12% for resources like solar, wind turbines, biogas, batteries, natural gas generators, fuel cells, and hydrogen electrolyzers.
Strong market fundamentals and demand for DERs and microgrids remain. However, the loss of federal incentives and other challenges means developers must be better at optimizing projects by stacking value and minimizing risks. To achieve that goal, DER and microgrid projects are becoming more complex. The industry is maturing, shifting from a reliance on subsidies to a focus on the true value a project can deliver.
To maximize project value, development may be trending from simpler solar and storage projects to more complex microgrids.1 For organizations to continue to exist in an era of slimmer margins, they must manage complexity with sophisticated modeling approaches and tools as well as integrated control strategies so that projects meet financial requirements to move forward at every stage.
This report examines findings from an October/November 2025 market survey of more than 150 distributed energy and microgrid professionals conducted by Energy Changemakers, Factor This Renewables and Xendee.
Read it to learn about:
- The impact of federal policy changes, interconnection delays, and other challenges for microgrid project development.
- How distributed energy and microgrid projects are evolving to meet financial and organizational objectives.
- What distributed energy and microgrid professionals want from planning tools, software and control systems.
