The term “distributed generation” generally refers to small-scale generating facilities installed on an end user’s side of the utility meter and interconnected to the utility’s low-voltage distribution system. Distributed generation usually is designed to meet an end user’s on-site energy needs, often with power generated from solar, wind, or biogas resources or cogeneration technology. While each distributed generation investment is unique and requires careful, fact-specific due diligence, a well-structured investment can create opportunities for end users to lower their energy bills, reduce energy price volatility, earn tax benefits, improve electric service reliability and create product differentiation through environmentally conscious decision-making.
For more information, see Julia E. Sullivan, et al., Why End-Users Are Investing (Big) in Distributed Generation, The Electricity Journal, Vol. 27, Issue 2, pp 23-32 (March 2014) (available at https://www.sciencedirect.com/science/article/pii/S1040619014000219)