New Market Survey from Xendee Reveals DER Developers are Shifting Project Focus Amidst Federal Funding Losses

Despite funding losses, developers remain bullish due to increasing electricity demands and the availability of cost-effective solutions like microgrids

LAS VEGAS, Jan. 21, 2026 (GLOBE NEWSWIRE) -- Xendee Corporation, provider of the leading design and operation platform for distributed energy and microgrid systems, announced today the results of a new market survey executed by Energy Changemakers and Renewable Energy World that highlights how distributed energy and microgrid projects might be evolving in 2026 following federal policy changes and ongoing utility challenges.

Between the elimination of solar incentives, the introduction of tariffs on international distributed energy technologies, the surge in energy demand from data centers, on-shoring of critical supply chains, and the increasing cost of electricity, this past year has created an entirely new set of navigational challenges. To understand exactly where and how microgrid and distributed energy developers are shifting their strategies to meet objectives, Energy Changemakers and Renewable Energy World surveyed more than 150 industry professionals in October and November 2025.

Despite federal funding changes, project outlooks remain strong

The survey revealed a shift from reliance on government funding as developers pivot to move projects forward:

60% of respondents said they expect federal policy changes to create challenges in 2026.
More than two-thirds shared state-level grants and incentives aren’t enough to offset the loss of federal funding.
Despite the loss of federal funding, 70-75% of developers did not identify funding as a top challenge in 2026. This potentially indicates that the funding process has evolved to depend less on the federal government.

Multiple DER technologies become essential to success

Challenges with interconnection queues and data center demand, coupled with extreme weather, are driving developers towards microgrids and greater complexity in project development to meet the market’s energy needs and remain competitive:

Survey respondents expect to deploy a broader mix of distributed energy resources in future microgrid projects, including: solar (+5%), battery energy storage (+12%), natural gas generators (+9%), fuel cells (+7%), wind turbines (+5%), biogas generators (+11%), and hydrogen electrolyzers (+6%).
81% of complex, multi-DER developers have projects under development, whereas only 48% of developers focused on simpler, 1-2 DER technology systems have projects under development. The additional complexity of microgrids enables them to remain economically viable by capturing more value.

"With permitting delays and power outages already costing businesses real money, speed to power and cost certainty have become non-negotiable. Many companies are forced to rethink where power comes from, and now see the traditional grid as too fragile, accelerating the shift to microgrids," said Adib Naslé, CEO of Xendee. "Our data shows that integrated microgrids deliver faster and stronger returns than standalone DERs."

Tools to reduce risk take precedence

With funding losses, businesses are leaning towards tools that help reduce project risks, move faster, and improve margins to advance DER and microgrid development:

47% of microgrid developers and 56% of non-microgrid DER developers (1-2 DER technologies) shared that “reducing project risk” was the top benefit they seek from microgrid planning tools.
42% of microgrid developers and 61% of non-microgrid DER developers said “return on investment” was the other top benefit they look for from microgrid design tools.
Focusing solely on smart microgrid control technologies, 64% of microgrid developers named “return on equity” as a top 3 benefit they seek, and 64% named innovative “forward-looking predictive capabilities.”

To view the full market survey, please visit: https://xendee.com/2026-microgrid-market-survey

About Xendee Corporation
Xendee is an award-winning software platform built to integrate feasibility analysis and proposal generation, portfolio assessment, detailed engineering, and operation of Distributed Energy Resources and EV fast-charging infrastructure. It is the only integrated provider of microgrid design and Artificial Intelligence-based microgrid operation optimization software. Xendee’s techno-economic algorithms can produce an ideal investment solution and operation schedule to meet organizational goals which can include reducing costs, cutting emissions, and increasing resilience. Explore how Xendee can empower your organization by setting up a call with us at xendee.com/demo.

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