In 2035, microgrids will be the core building block of a modern grid, in which the U.S. Department
of Energy (DOE) has envisioned that 30-50% of electricity generation will be served by distributed energy resources (DER). Microgrids have a unique role in transforming the electric grid. The nation simultaneously faces increasing threats from extreme weather events and opportunities to
electrify entire sectors of the economy and address ongoing inequities in energy access. Microgrids,
which can aggregate many of the most profound capabilities DER has to offer, provide real and imme-
diate solutions to a broad range of challenges.
Realizing the DOE’s vision requires deliberate effort and thoughtful action across states andactors. Regulators, policymakers and industry stakeholders must create the appropriate struc-
tures to leverage market activity, encourage diverse investments and respond to the changing demands of consumers, companies, and communities. The DER paradigm shift requires policy-
makers to remove existential barriers and support a self-sustaining market. In many contexts, micro-
grids are helping realize this vision today, but the country has a long way to go.
Think Microgrid’s 2024 State Scorecard expands upon the framework established by the 2023 State
Scorecard. It incorporates new policy activity from utility commissions, legislatures, and state agencies across the country, highlighting policy successes while calling attention to the continued barriers to market enablement. Overall, the Scorecard depicts a landscape where states are incrementally driving progress, but also a landscape that remains largely unchanged. The Scorecard is intended to provide both an informed assessment of where the country stands today and a roadmap to achieving a long-term policy vision supporting microgrid commercial-ization. Think Microgrid’s research finds that even states that have taken dedicated approaches to microgrid policy and regulation have struggled to create attractive environments for diverse, scaled capital deployment. It suggests a clear need for state, community and industry leaders to identify and execute immediate and practical action today.
