What does "self-consumption" mean in the context of distributed generation?

In the context of distributed generation, "self-consumption" refers to the practice of generating power primarily for personal use rather than for export to the energy grid. This approach is often employed by individuals or businesses with renewable energy systems, such as solar panels, allowing them to utilize the energy generated on-site. By using this generated power, they can significantly reduce their reliance on the grid, leading to cost savings on energy bills and a lower carbon footprint.

Self-consumption emphasizes the idea of utilizing energy where it is produced, which aligns with the goals of distributed generation, highlighting the shift towards localized energy solutions and greater energy independence. This strategy also reflects on the sustainability aspects of energy production, as it encourages the efficient use of renewable resources, directly promoting energy resilience and reducing the overall demand on centralized power plants.