Abstract

ABSTRACT This article1 presents a summary of some of the primary state and federal incentives that are currently available for the use of distributed generation (DG).2 Although there are various definitions for DG, in general it refers to the use of small-scale power generation technologies located at or near the point of use. At present, there are many important incentives available, from both federal and state sources, for the development and use of DG. Although not all states provide incentives for the development of DG, and many impediments to development remain, the rate of growth in this sector is impressive. In fact, it is hard to overestimate the importance of this energy sector. Not only does DG represent a significant new source of electric generating capacity, it is also changing the structure of the electric generating industry. As more businesses and homes produce much if not all of their own electricity, the demand for new large-scale generating projects and new transmission and distribution...

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