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A Better Name for Distributed Generation

November 11, 2025

For an introduction to solar electric energy systems see our PV201 online course.

Words and names are important and powerful, especially for solar technical terms such as Distributed Generation. The term “distributed generation” in the solar industry means an energy generation system located and generating energy where the energy is also consumed. However, the term is confusing since all energy is distributed if it’s connected to the grid; it’s distributed in basically three different ways.

One way is for electric power companies to generate electricity and distribute it to their customers from huge power plants such as nuclear, coal or natural gas. Another way is through Utility Scale Solar farms, and that energy is generated, then distributed to and purchase by the consumer. The third way, as an example, is for a residential or small commercial customer to own a solar PV system that generates solar power and sells that power back into the grid, which is “Distributed Generation”.

The term “Distributed Generation” was created when all electrical power generation was from large centralized power sources. By one definition, the word Distributed means spread-out. But it also means dealt-out and that is a different meaning. The term seemed to make sense at the time, but is it time to change the term so that it reflects a more accurate definition of consumer generated energy.

Here is a list of solar terms or acronyms that may be more suitable than Distributed Generation:

  • Consumer Owned Generation (CO Generation)
  • Primary Consumer Generation (PC Generation)
  • Ultimate Consumer Generation (UC Generation)
  • Independent Transferable Energy Resource (ITER Generation) Just for fun – Same acronym as the International Thermonuclear Experimental Reactor
  • Site Power Option Transferable Generation (SPOT Generation)
  • Energy Source On-Site Generation (ESOS Generation)
  • Consumer Energy Source Generation (CES Generation
  • Energy Consumer On-Site Generation (ECOS Generation)

It may seem like a minor thing but it isn’t. The perceived context of a word or term is rooted deeply in the interpretation, and effects are too often misunderstood. We need to get away from the context of “Distributed”.

 

Kelly Provence
Solairgen School of Solar Technology
info@solairgen.com
(800) 262-7560

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