Powering the Inevitable: A “no regrets” case for distributed energy

American clean energy policy faces a gridlock. AI and cloud providers, the public, and government officials remain at odds over affordability and reliable power, imbuing tensions in regulatory dockets and legislative hearings throughout 2026. These sessions center on three priorities: household energy affordability, enabling AI-driven infrastructure, and keeping clean energy pathways open amid federal funding constraints. 

These current policy concerns and discussions come as no surprise. Our aging grid is costing American businesses $150 billion annually. AI Data centers are consuming over 5 percent of all American electricity, yet they avoid paying peak prices. Still, consumers prefer to consume energy from cleaner sources. 

Overcoming the gridlock in clean energy policy requires a “no regrets” approach: a course of action that can be justified in more than one way and still produce strong results. We believe that the solution lies in distributed energy resources (DERs). These are localized energy assets that generate and store electricity where it is needed, rather than miles away at a power station.

Here are four “no regrets” actions that point to the expansion of DERs as a key solution.

1. Ensure enough grid capacity for growing energy needs

Grid pressure is rising. Projections indicate a 71 percent increase in cooling demand by 2050, driven not just by climate factors but by rapid technological progress, data centers, and increased manufacturing. As Executive Order 14262 confirms, if rising demand is our new reality, the grid must grow to meet it.

Expanding and diversifying electricity generation is a “no regrets” approach to meeting our current electricity demands because it strengthens the grid for both households and industries. It provides a variety of consumption sources and localized grid activity. People across the political spectrum recognize that diversifying the grid is necessary; so, the real debate is how best to do it.

2. Promote market-based choice in consumer energy consumption

Another important part of a “no regrets” energy strategy is making sure America’s energy system stays strong and sustainable over time. That involves giving consumers a real range of energy choices and building a system that reflects what people actually want and need across different communities.

When given the choice, consumers often choose cleaner and more diverse energy. Between 2010 and 2020, voluntary purchases of non-hydropower renewable energy increased fivefold, and the voluntary market made up over 35 percent of all non-hydropower renewable generation. Community solar makes the choice for clean energy tangible while providing electricity savings enabled by policy incentives. We believe that policymakers should take the demand for cleaner energy seriously and ensure that the energy mix and the policies that enable it reflect the preferences of the people using it.

Non-dispatchable resources like solar must be added to the grid as a supplement to other sources. This diversifies electricity sources without risking reliability or disrupting daily life. That is why expanding DERs is not about replacing every other kind of generation. It is about giving communities more flexibility and better matching energy resources to local needs. 

Not every community can rely on the same mix of power. Some will depend more on dispatchable power, while others will benefit more from DERs. A “no regrets” approach makes room for both, while still improving resilience and consumer choice.

3. Evaluate climate crisis mitigation from an economic standpoint

Arguments over the social costs of climate action often stall policy progress by turning debates into value-based fights. A more practical approach judges mitigation options by their bottom-line cost, which is the fiscal prudence a “no regrets” strategy relies on.

The cost of inaction is already real. Severe weather-related power outages made up 80 percent of all major outages from 2000 to 2023 and cost the U.S. economy more than $150 billion a year. The Department of Energy warns that outage risk could rise 100 times by 2030 if the grid is not made more resilient to worsening weather. DERs offer a financially sound response to those losses. 

The EIA estimates that 5 to 8 percent of electricity produced is lost during transmission in conventional systems. Local generation means less electricity waste, less congestion, and a more efficient grid.

4. Do not unfairly favor ratepayers 

Energy burdens have traditionally fallen hardest on low-income and marginalized households, with low-to-moderate income families spending over 6 percent of their income on utilities compared to 2.3 percent for higher income households. Community solar helps alleviate this energy burden by providing bill savings. 

A “no regrets” approach has to recognize that grid design affects more than one group. Inadequate infrastructure raises costs and creates problems for all ratepayers, regardless of rate class or income.

This point matters even more as energy demand grows. Massive data centers consumed an estimated 4.4 percent of all U.S. electricity in 2023, and their high energy use increases demand and infrastructure costs. DERs can help by providing local, stable, and often cheaper power, which makes the system more balanced and can protect ratepayers from price manipulation.

Microgrids offer one solution to this imbalance. Experts argue that they improve resilience and reduce peak demand, potentially allowing us to “get by” with less transmission. Furthermore, microgrids can be deployed faster than traditional infrastructure to meet peak demand needs.

The “no regrets” philosophy: why it matters

Clean energy policy is currently gridlocked by permitting, transmission, and interconnection disputes. A “no regrets” approach cuts through this by focusing on policies that solve critical problems.

If policymakers chose energy policy without knowing whether they would benefit a big tech leader, a small business owner, a ratepayer, or a citizen facing power outages and rising costs, they would create the fairest and most widespread benefits.

Expanding DERs improves reliability, reduces waste, lowers risk, and serves more stakeholders well under uncertainty. It is time for policymakers to think from behind the veil of ignorance and stop treating clean energy as a zero-sum fight. They should move quickly on policies that expand DERs, speed up deployment, and build an energy system that is more reliable, affordable, and fair for everyone.

Emma Søndergaard Jensen is Regulatory Policy Analyst, and Chris Kallaher is General Counsel & SVP at Ampion, where they connect people to local solar farms, boost sustainability in communities, and support local economies.

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