A large number of DER technology companies are presently in the transition from research and development to product commercialization. These companies frequently conduct prototype demonstrations in order to obtain operating experience, as well as to gain name recognition.

The first version of the product prototype, generally referred to as the 'alpha', is usually tested in a laboratory or some other controlled setting to collect operating data. The 'beta' prototype is an improved version of the 'alpha'. It typically undergoes proof-of-concept testing with demonstration partners in a simulated real-world application. Finally, field demonstrations are conducted to verify the on-site operation of the DER device in a real-world application. All of the data and information collected from the prototype testing is applied to the final product design. It is also common for the product to go through a series of design changes over time, as more is learned about its operation.