What is an example of a distributed generation resource?

Residential solar panels are a prime example of a distributed generation resource because they generate electricity at or near the point of consumption, such as on the rooftops of homes. This localized generation reduces transmission losses and enhances energy independence for consumers. By harnessing solar energy directly at the site where it is used, residential solar panels allow homeowners to generate their own electricity, often resulting in lower energy bills and a reduced carbon footprint.

In contrast, large hydroelectric dams, natural gas power plants, and nuclear power stations are typically centralized generation resources, as they generate electricity on a much larger scale and transmit it over long distances through high-voltage transmission lines. These centralized systems are more vulnerable to disruptions and losses during long-distance transmission compared to distributed resources like residential solar panels.