---
title: What is Distributed Generation?
description: Discover how distributed generation (DG) can help Northeast businesses save on energy costs, enhance sustainability, and boost grid resilience. Learn about Catalyst Power’s innovative DG solutions.
image: https://blog.catalystpower.com/hubfs/Untitled%20design%20-%202024-09-29T212706.019.jpg
---

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# What is Distributed Generation?

[ Emiley Mallory ](https://blog.catalystpower.com/more-power-to-you/author/emiley-mallory) •  October 2, 2024

In a world where energy consumption is as vital as a morning cup of coffee, the way we generate power is evolving rapidly. Enter distributed generation (DG), an innovative approach that is reshaping our relationship with renewable energy sources, especially in the Northeast. Let’s delve into what DG is, how it’s being used in the Northeast, and why business owners should pay attention. 

**What are Distributed Generation Systems?** 

DG refers to the production of electricity from decentralized sources, often located close to where it will be used. Think solar panels on rooftops, small-scale wind turbines in open rural areas, or commercial buildings' combined heat and power systems (called “cogeneration” systems). Unlike traditional power plants that generate electricity far away and send it through a sprawling grid, DG sources are integrated into local energy systems, creating a more resilient and efficient network.  

It’s energy production right in your neighborhood (or at your front door). As more businesses prioritize energy usage, DG is becoming a critical component in meeting sustainability and cost-efficiency goals. 

**DG Opportunities in the Northeast** 

The Northeast is buzzing with DG activity, driven by a unique combination of government incentives, technological advancements, and a population that values sustainability. States like Massachusetts and New York have pioneered programs that support solar energy installations, while Connecticut invests in energy storage and community solar projects. 

**Solar Power:** Massachusetts has become a leader in solar energy. With its Solar Massachusetts Renewable Target (SMART) program, businesses can benefit from financial incentives while reducing their carbon footprint. Many companies have made solar photovoltaics a core part of their sustainability strategy, showcasing their environmental commitment.  

Businesses in New York have also made great use of solar power and have increasingly embraced community solar to access clean energy and reduce electricity costs without installing solar panels on their properties.  It's an affordable alternative that promotes energy efficiency and easier access to clean energy. 

**Energy Storage Systems:** The rise of battery storage systems allows businesses to store excess energy generated during peak sunlight hours and use it when demand spikes. This not only reduces costs (and emissions) but also ensures reliability. By leveraging energy storage, businesses can guard against rising energy prices and improve operational resilience. 

**Benefits for Business Owners** 

You might be wondering, "[Why should I care about DG](https://blog.catalystpower.com/more-power-to-you/why-should-i-care-about-the-source-of-my-energy)?" If you’re a business owner, DG isn’t just a buzzword; it’s a game-changer for your bottom line.  

- **Cost Savings:** You can significantly lower your energy bills by generating a portion of your own power supply.  State (and some federal) incentives make DG solutions more accessible, helping to offset upfront costs and deliver a faster return on investment. 

- **ESG Goals:** Consumers are increasingly drawn to businesses prioritizing sustainability in today's market. By adopting DG solutions, you position your company as a forward-thinking leader in corporate responsibility and can retain more employees. 

- **Grid Resilience:** DG enhances the resilience of the overall power grid. When more people produce energy locally, it reduces the long distances your energy travels, including the strain on the grid during peak times, lowering the risk of outages. In the event of grid disruptions, businesses with DG systems are often less affected, improving reliability and continuity. 

**Your Future is Brighter with DG** 

As we navigate the complexities of modern energy needs, distributed energy resources provide a beacon of hope. It’s not just about reducing costs; it’s about creating a sustainable, reliable energy future. For business owners in the Northeast, adopting a DG system is not merely an option—it’s a strategic move.   
   
When you partner with Catalyst Power, [there is no upfront cost to signing up](https://blog.catalystpower.com/more-power-to-you/how-can-i-connect-to-solar-farms-in-new-york) for community solar. Depending on the location, businesses in New York can take advantage of our program and save an average of 5-10% on their monthly energy bill. If you're in another state, reach out to our team to explore other available programs. 

Catalyst Power’s [Connected Microgrid®](https://catalystpower.com/our-solutions/connected-microgrid/) is another great example of making DG solutions work for you. It’s a behind-the-meter solution that creates on-site solar generation (with optional battery storage) at a fixed rate your budget will thank you for. 

So, whether installing solar panels or participating in a community solar project, upgrading your current systems with DG is a significant shift toward more energy independence and positive environmental impacts.  

[ Learn More about Catalyst Power’s Distributed Generation Opportunities! ](https://catalystpower.com/contact-us/)

 

[Connected Microgrid](https://blog.catalystpower.com/more-power-to-you/tag/connected-microgrid), [Budget Certainty](https://blog.catalystpower.com/more-power-to-you/tag/budget-certainty), [Community Solar](https://blog.catalystpower.com/more-power-to-you/tag/community-solar), [Product Education 101](https://blog.catalystpower.com/more-power-to-you/tag/product-education-101), [Education](https://blog.catalystpower.com/more-power-to-you/tag/education), [Retail Energy](https://blog.catalystpower.com/more-power-to-you/tag/retail-energy)

## About Catalyst Power

As an independent, integrated provider of commercial electricity and gas as well as distributed energy solutions, Catalyst Power helps your business get the most from your power supply.

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### [How a Connected Microgrid Can Scale with Your Business](https://blog.catalystpower.com/more-power-to-you/how-a-connected-microgrid-can-scale-with-your-business)

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[![](https://blog.catalystpower.com/hs-fs/hubfs/Untitled%20design%20-%202025-06-28T223902.205.jpg?width=720&name=Untitled%20design%20-%202025-06-28T223902.205.jpg) ](https://blog.catalystpower.com/more-power-to-you/decoding-your-commercial-energy-contract-key-terms-every-business-should-understand)

### [Decoding Your Commercial Energy Contract: Key Terms Every Business Should Understand](https://blog.catalystpower.com/more-power-to-you/decoding-your-commercial-energy-contract-key-terms-every-business-should-understand)

 Understand key terms in commercial energy contracts to avoid surprises and control costs. Empower your business with cle…

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### [The Steep Cost of Commercial Blackouts—And How to Prepare](https://blog.catalystpower.com/more-power-to-you/the-steep-cost-of-commercial-blackouts-and-how-to-prepare)

 Learn about the financial impact of commercial blackouts and discover how onsite power generation can protect your busin…

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