Technology
Distributed Generation (DG) refers to electricity generation that occurs at or near the point of consumption, rather than at large, centralized power plants. DG systems are typically smaller in scale and connected to the distribution grid or directly to customer facilities. Common examples include rooftop solar panels, small wind turbines, combined heat and power systems, fuel cells, and backup generators. In renewable energy, distributed generation primarily consists of solar photovoltaic systems installed on homes, businesses, schools, and other buildings. DG offers several benefits including reduced transmission losses (since power is generated close to where it's used), increased grid resilience, reduced strain on transmission infrastructure, and greater energy independence for consumers. DG systems can operate independently (off-grid) or in conjunction with the utility grid (grid-tied), often with net metering arrangements that allow excess power to be sold back to the utility. The growth of distributed generation, particularly solar DG, is transforming the traditional centralized electricity system into a more decentralized, flexible, and resilient grid architecture.