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Distributed Generation
Practical Law Glossary Item 8-517-7787 (Approx. 3 pages)
Glossary
Distributed Generation
Refers to electricity that is produced and used on-site. It applies to a wide range of technologies including solar and wind. For example, some commercial entities and residential property owners have solar panels installed on the roofs of their property to produce electricity for their own use. In some cases, the electricity generation facilities are also connected to a utility's transmission infrastructure to allow the property owner to:
- Sell to their local utility any excess electricity its installation may produce.
- Buy electricity from the utility when its installation does not generate enough electricity to meet its needs.
Depending on the needs and expertise of the property owner, it may:
- Hire a contractor to build and install the generation facilities on its property. In this case, the property owner is responsible for operating and maintaining the facility.
- Enter into an agreement with a developer to build, install, own and operate the generation facilities in exchange for buying the energy produced by the project from the developer.
For more information on distributed generation, see Practice Note, Understanding Renewable Energy: Solar: Distributed Generation.