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Consultant E3 Submitted Final DER Report With ICC

Category: Illinois
Related Categories: Distributed Energy Resources, Report

Illinois receives final report on Value of DER. In mid-January, Illinois Commerce Commission consultant E3 submitted a final report as part of a process to determine appropriate compensation levels for distributed energy resources (DER). 

Among other things, the report: (1) recommends base rate compensation of $300/kW for net-metered solar at Ameren and ComEd and $250/kW of other installed solar; (2) recommends the annual additive services compensation for standalone storage of $32/kW at Ameren and $25/kW at ComEd; (3) found that value “depends strongly on aligning DER output with hours of stress on individual feeders… [and] dispatchable DERs are the resources best suited to relieve it,” but noted that “compensation for these resources should be tied to performance to guarantee realization of potential value”; (4) found that most of the value of DG to the state “could be achieved by cheaper utility scale resources, and existing compensation for DG creates affordability concerns for non-participants”; and (5) found that some suggested DER benefits, such as resilience, flexibility, reduced methane leakage, and voltage regulation/optimization, cannot “be quantified with sufficient certainty today to consider them for compensation.”

Final Report   (02/2025)
ICC Workshop Series Into Investigation Into DER