Existing regulatory approaches to DER lack the precision and granularity necessary to ensure that DER can continue to scale in a cost-effective manner that is aligned with the public interest. To address this need, with the support of the U.S. Department of Energy’s Office of Electricity,  Berkeley Lab and Current Energy Group developed an illustrative regulatory framework. By adopting a technology-neutral and modular approach, the framework enables flexibility and scalability for DER providers, utilities, and regulators. Clear price signals and incentives encourage the provision of valuable grid services, while equitable cost allocation promotes efficient use of distribution capacity and interconnection resources. This approach mirrors traditional ratemaking principles for importing customers and positions DERs as integral components of a dynamic and cost-effective energy future.