A methodology that takes a uniform approach to establishing the true value of the electricity produced by distributed energy resources (DER). Value of distributed energy resources methodology (VODER) takes into consideration the unique nature of distributed energy generation such as solar and energy storage. Unique features include; power generation occurs close to the point of consumption, generation does not require fuel purchase and has significant environmental advantages over fossil fuel powered generation technologies. These characteristics generally increase the value of DER as they allow utilities to reduce their energy costs, avoid generation, transmission and distribution capacities costs and reduce the social and environmental impact. Adapting a VODER methodology represents an opportunity for states and utilities across the country to begin to assess the benefits of distributed generation and better plan for energy investments that provide maximum network and societal benefits. The VODER methodology can contribute to :

• Improving utility resource planning
• Informing solar incentive programs
• Establishing an analytical foundation for the determination of feed-in tariffs