Distributed Generation refers to small-scale generating methods that are linked to the electrical grid, such as solar, wind, CHP, hydro, or more recent methods (DG). Customers can generate some or all of the electricity they require using DG systems. The electric load of a customer is the electricity they consume, such as for lighting, consumer electronics, or HVAC. The amount of electricity a client uses can be efficiently reduced by the consumer producing some or all of it. Generally speaking, Distributed Generation systems generate electricity for the buildings to which they are linked (e.g. solar panels on a home or business).
Power may be produced using renewable DG systems with no harm to the environment. However, the majority of renewable DG systems only generate electricity when their power source, like the wind or sunlight, is present. There may be instances when the customer needs to get electricity from the utility company's electric grid due to the intermittent nature of the power supply from DG systems. When a DG system generates more energy than the customer's load, the extra energy is delivered back to the electric grid of the utility company. The overall load that the utility company must supply is decreased as a result.
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