What are distributed energy resources?

Many Victorians are using distributed energy resources to generate, store, manage and sell their own energy. This includes solar panels, home batteries, electric vehicles and controllable air conditioners.

The use of distributed energy resources is increasing. Projections include:

  • By 2025, solar panels on homes and businesses will deliver up to 60% of our energy demand at times,
  • Within the next decade, the energy in small-scale batteries will increase eight-fold,
  • By the mid-2030s, electric vehicle use will increase by more than 1600%.

How can I access distributed energy resources?

Renters, community housing tenants, homeowners and rental providers can access subsidies to generate, store, manage and sell their own energy. Explore current subsidies:

Solar Victoria Programs:

  • Solar panels (PV)
  • Solar hot water
  • Solar battery
  • Solar panels for rentals
  • Solar for business
  • Heating and cooling
  • Zero emissions vehicles
  • Virtual Power Plant pilot

Victorian Energy Upgrades

Victorian Energy Compare

How is the Victorian Government supporting the transition to distributed energy resources?

Harnessing Victoria’s Distributed Energy Resources shows how we will support this shift to distributed energy resources, helping householders and businesses save money through control of their own energy. Energy affordability, sustainability and reliability remain top priorities for the government through this transition.

  • Opportunities - by integrating distributed energy resources into our electricity grid, we can lower our emissions and electricity prices and have greater energy security and consumer participation.
  • Challenges - we are addressing the challenges of connecting distributed energy resources to our old electricity system. This system was designed for a few coal generators rather than a vast network of small-scale renewables and strong consumer participation.

Our vision is to deliver reliable, sustainable and affordable energy services, and a zero emissions, climate ready economy and community.

An image shows what the traditional electricity system looks like compared to the vision of tomorrow. We move from a few large power plants to many small power producers. From a centralised energy system to a distributed energy system. From old infrastructure to modernised infrastructure. From distribution that goes in one direction, to distribution that goes in both directions. From passive consumers paying for energy, to consumers who actively participate in the energy system.

To achieve our vision, we will focus on:

  • Helping all householders access the benefits of distributed energy resources
  • Driving innovations through place-based initiatives
  • Future proofing consumer protections for our transforming energy system
  • Supporting business and jobs to harness the opportunities of distributed energy resources
  • Transforming our public and private buildings
  • Preparing our grid for distributed energy resources integration and consumer access to markets

The customer journey. 1: Awareness and research as consumers proactively seek information. 2: Engagement with marketing as suppliers engage with consumers to seek their business. 3: Consumers make their purchasing decisions. 4: Consumers select accredited providers to install DER devices and services. 5: Consumers choose a retailer and/or approved third party to connect devices and provide energy services. 6: Retailers and/or third parties provide energy services, billing and data management. 7: Consumers and suppliers dispose of DER products and services in line with regulations.

Learn more

Download the report to learn more about our vision for a distributed energy resources dominant future:

Harnessing Victoria's Distributed Energy Resources (PDF, 2.8 MB)

Harnessing Victoria's Distributed Energy Resources (DOCX, 1.9 MB)

Page last updated: 27/05/22