Utilities crafting new business models and customer programs in response to flat demand and the growth of distributed energy resources (DERs) such as rooftop solar, energy efficiency, and electric vehicles should both leverage industry best practices and seek effective stakeholder collaboration in designing and executing meaningful test projects, according to a new Rocky Mountain Institute (RMI) report.RMI’s report, Pathways for Innovation: The Role of Pilots and Demonstrations in Reinventing the Utility Business Model, explores challenges to effective innovation at U.S. electric utilities, with a focus on pilot and demonstration projects. The report offers recommendations for utilities, regulators, and DER technology providers to incorporate meaningful pilot and demonstration projects into innovation programs that advance a low-carbon, distributed, resilient energy system.The report's authors sit down to discuss these recommendations.