As utilities across the U.S. confront growing electric loads and aging infrastructure, E3’s new white paper, Unlocking the Value of Smart Panels, analyzes how smart electric panels, specifically, SPAN® Edge Intelligent Service Point™ (ISP), can deliver substantial system-wide benefits when deployed under a utility ownership model. This study was funded by SPAN, Inc., but the analysis and conclusions are solely those of E3.
This research comes at a critical time: with building and transportation electrification accelerating, utilities are seeking scalable, modular solutions that can defer costly distribution upgrades, increase system flexibility, and enhance customer affordability. Smart panels give customers circuit-level visibility and control over electricity use inside the home. By shifting or limiting loads in real time, they help avoid overloading neighborhood transformers and service lines, reducing strain on local infrastructure and supporting electrification.
Key Findings
E3’s analysis quantifies the value of SPAN Edge ISP deployment using a representative residential feeder in California with limited headroom and significant electrification potential. Using distribution data, hourly load modeling, and CPUC cost-effectiveness frameworks, we identified measurable customer and utility benefits, including:
- Customer Net Benefits: $7,900 to $8,100 per device, primarily from avoided panel upgrades and time-of-use bill savings
- Utility Net Benefits: $3,200 to $10,600 per device, driven by avoided distribution system upgrades and deferred service extension costs
- Total Net Benefits: Exceeding $14,000 per device in high-deployment scenarios
- Distribution Upgrade Deferral: Utility benefits ranged from $101,000 to over $1.16 million for the representative feeder analyzed, illustrating significant potential to reduce last-mile infrastructure costs
- Cost-Effectiveness: Total Resource Cost (TRC) ratios of 3.8–6.5, demonstrating strong performance under established California regulatory metrics
These results demonstrate that smart panels – when strategically deployed and complemented with managed EV charging – can serve as virtual distribution assets that flex with system conditions and load growth.
Why this matters:
For Utilities and Grid Planners: This paper demonstrates how utility- or aggregator-owned smart panels can serve as dispatchable load management assets that help:
- Defer substation and transformer upgrades
- Increase hosting capacity in electrification-constrained areas
- Improve alignment between distribution planning and DER deployment
- Enable electrification, in line with California’s climate goals, without triggering costly upgrades
- Provide firm load control at the home level without compromising customer comfort
For Regulators and Policymakers: By aligning with California’s Standard Practice Manual and using existing CPUC cost tests (TRC, PAC, PCT), this analysis provides a framework for regulators to assess utility investments in smart panel programs with clarity and rigor. The findings are particularly relevant as states evaluate non-wires alternatives (NWA), DER incentives, and ratepayer equity in the face of rising capital costs.
For Technology Providers: This study demonstrates a potential business case for SPAN smart panels as grid-interactive devices. While E3 did not evaluate the field performance or technology cost of SPAN Edge ISP, the results indicate how smart panels can unlock additional value streams by offering real-time visibility and control at the grid edge – capabilities not available through traditional AMI or legacy metering infrastructure.
Who this paper is for:
- Utility program designers and distribution engineers evaluating non-wires solutions
- Regulatory staff and policymakers shaping DER compensation and cost-effectiveness frameworks
- Technology providers demonstrating grid value to utilities and regulators
- Grid modernization teams developing advanced planning and hosting capacity strategies
- DER aggregators and VPP operators interested in reliable load control technologies
E3’s findings underscore the importance of targeted smart panel deployment, especially in areas of the grid where electrification adoption is high and infrastructure constraints are emerging. Programs that combine utility ownership with strategic siting, clear eligibility criteria, and integration with managed charging have the potential to transform the economics of grid modernization, while expanding equitable access to electrification.
Download the full paper here >
To learn more about E3’s work in grid modernization strategies, distribution planning and granular, location-specific grid impact modeling, you may reach E3 Partner Eric Cutter directly at eric@ethree.com.
