Distributed generation refers to the technology of households and businesses having wind, solar or hydro electric systems safely connected to the grid, sharing their excess electricity with others in their area.

Why does distributed generation make sense?

• Less energy is lost in transmission.
• Makes the grid more resilient.
• Can avoid need for new transmission lines.
• Dispersed sources can help utilities meet growing demand at lower cost to its customers.
• If residents are compensated, distributed generation can become a new source of revenue, helping preserve rural communities.
• Can generate more of our energy in cleaner ways, improving our quality of life and reducing the hidden costs associated with environmental degradation.
• Reduce our nation’s dependence on foreign sources of energy, a dependence which leaves us economically vulnerable to countries that do not always have our best interests at heart. 

How does it work?
Distributed generation works for wind and hydro systems as well as solar electric.

Let’s say your neighbor has a grid tied solar electric system. Its sunny and a 100° out.  Your neighbors are not home and their solar panels are producing more electricity than the home is using. Excess energy, through net metering, (link to net metering) is pumped onto the grid for future credit. Where does the excess electricity go? It just doesn’t disappear, nor is it setting idle on the lines till they need it. Electricity follows the path of least resistance. Let’s say you do not have a RE system and you are running your air conditioner. You could be getting a portion of your electricity from the excess of the home with a grid tied solar electric system. This is done with minimal line loss. This safely back feeds the grid and helps it stay healthy in peak demand times. During the winter, the same scenario could also be played out with quality wind electric systems when heating is a major load.

Distributed generation makes sense!