• On-site Power Locating power generation at or near the end- user site.

• Standby and Backup Power supplies critical loads during periods of power outage or grid disturbance.

• Combined Heat and Power (CHP), or cogeneration, reduces both demand and energy charges. Heat rejected from on-site electrical power generation is used to heat living spaces or as process heat, leading to lower energy consumption and cost.

• Demand Charge Reduction (Load Shaving) reduces utility bill demand charges by supplying a part of the peak load using on-site power. If the customer’s power off-take increases for 10-30 minutes, it leads to higher demand (per kW) charges. Demand charges are often a major component of utility bills, and DG can be used to mitigate such medium-term load events.

• Power Quality Improvement to meet utility requirements. This may take the form of power factor correction, reduction of harmonics fed into the grid, or peak load shaving in which very high transient loads are met ‘behind the meter’, complying with utility requirements, and avoiding penalty. This is particularly important for industrial and commercial customers operating power electronic equipment such as computer power supplies, motors and industrial drives.

• Load Shaving reduces power loads for which operation during peak-load period (as identified by the utility) cannot be avoided. This results in lower utility bills, particularly in grid-constrained areas.

• Renewables like photovoltaics (PV) allow the direct placement of non-fossil fuel, clean, domestic energy on the grid. As these energy sources become more cost effective and reliable, they are playing a more significant role in our energy future and sustainability.

• Net Metering reduces energy usage for the end customer. If an end-user chooses to install grid-connected photovoltaics or other renewable energy sources, the power fed to the grid by is metered, just like the power consumed by the end-customer from the grid. This reduces the customer’s monthly energy off-take from the grid, utility charges, and avoids fossil fuel-based generation of electricity. The energy fed into the grid at the user's site is therefore valued at full retail electricity price.

• Remote Power: Remote equipment installations such as communications and off-grid houses and cabins are supported by remote power systems, which are also categorized as distributed generation.

Copyright 2005 Solectria Renewables LLC. All rights reserved.