Abstract
This paper has presented the concept of distributed generation to endorse microgrid in Oman to enhance utilization of solar energy. The various components of a 3 kW solar photovoltaic based distributed generation system have designed to meet the lighting load of a laboratory. The HOMER Pro software has used to model and simulate the output power of PV system and per unit energy cost. The optimized energy cost determined under sensitivity scenario becomes US$0.17per kWh. During off peak duration, the microgrid can export 740 kWh surplus powers to the grid annually. Paper has also discussed the benefits and challenges of distributed generation and microgrid
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