Distributed Energy Demonstration Act of 2017 This bill requires the Department of Energy (DOE) to establish grant programs for: (1) advancing the integration and optimization of distributed energy resources (i.e., smaller power sources that can be aggregated to provide power, such as rooftop solar panels) into the electric energy grid; (2) designing and producing an energy storage demonstration program using household hot water heaters; (3) advancing electric vehicles technologies; and (4) supporting the voluntary deployment of granular electricity pricing that is based upon the electricity's value at the time and location of the production or consumption of the electricity. In addition, the bill amends the Energy Independence and Security Act of 2007 to reauthorize through FY2025 and revise DOE's grant program for smart grid investments. The bill prohibits federal entities from requesting the creation, recording, or collection of sensitive personal data as a result of this bill's requirements.