The National Standard Practice Manual (NSPM) for Benefit-Cost Analysis of Distributed Energy Resources establishes a consistent framework for evaluating DER investments from a societal perspective. It guides policymakers and regulators in defining objectives, selecting appropriate cost-benefit tests, and identifying relevant impacts. The manual emphasizes transparency, symmetry in treating costs and benefits, and alignment with policy goals such as affordability, reliability, and environmental sustainability. It includes multiple perspectives—utility, participant, and societal—and addresses impacts like avoided energy and capacity costs, grid services, emissions reductions, and customer savings. The NSPM also promotes the use of scenario and sensitivity analysis to address uncertainty. By standardizing methodologies, it supports informed decision-making and ensures DER policies and programs deliver maximum net benefits to society.
