Texas Clean Energy 2026

Distributed generation (DG), like residential, community, multi-family, and small C&I projects, are growing in TX, driven by customers seeking reliability during extreme weather. At the same time, the grid benefits from DG and distributed energy resources (DERs) with increased load flexibility and reduced capacity investment. ADER and broader market reforms aim to integrate assets, though uncertainty around long-term impacts and market structures remains. Weak mechanisms, unclear market signals, and financial pressures slow the industry despite the opportunities in solar, BESS, and virtual power plants (VPPs). This panel will explore the evolving DG landscape, key barriers, and which assets are best positioned to succeed.

• Post-OB3 headwinds and tailwinds landscape: What’s affecting the market size, projected growth rate, and outlook for DG and DERs? After a rush in Q4 2025, the resi bottom dropped out: What’s the future of this market with low homeowner compensation and no tax incentives? Is HB 431 having an impact? BTM batteries for load shifting?
  • The real value of DG: Is net metering needed, and would ERCOT and the PUCT consider it? What market mechanisms could enable DG (updated rate design, new compensation, state incentives)? Are equipment delays and capacity constraints an issue?
  • Federal funding: Is Solar for All gone? What’s still available? How does this affect planning and financing pivots? What makes a DG or DER project economically viable?
  • Demand response: What operational models and revenue streams are financeable and in line with projections? What about VPPs? Are flex load rewards/penalties effective? How do small C&I loads behave in tight grid conditions, and why? How might this affect reliability?
  • What should coordination among regulators, utilities, transmission operators, aggregators, and DER owners look like? SPP/MISO Texas: Full compliance with FERC Order 2222 is anticipated by the end of 2029, what’s that doing for DG and DERs in that area?