In view of the difficulty in passively identifying the nature of faults in distribution networks and the high equipment cost of existing active detection schemes, a permanent fault identification and location scheme using an inverter-interfaced distributed generator (IIDG) connected to feeders for signal injection is proposed. After the faulty feeder is isolated, the power electronics in the IIDG are switched on for a short time and a voltage signal is injected into the feeder through the modified LCL filter and grid-connected transformer. The analysis shows that the aerial mode voltage of the feeder will not remain 0 under permanent faults. A highly sensitive criterion with fixed thresholds is constructed using approximate entropy (ApEn) to identify fault nature. Then the fault distance is further calculated based on the detected mutation point of the aerial mode voltage under permanent faults. The correctness of the theory and the effectiveness of the scheme are verified in PSCAD/EMTDC simulations.© 2017 Elsevier Inc. All rights reserved.