Generation on-site for use by a customer is frequently called distributed power and is typically privately owned by a business or individuals. The power production generally occurs behind the utility meter and either substitutes for power purchases or supplies power to the grid for credit when producing more than the customer consumes.
A significant advantage of distributed power is that far fewer losses in transmission and distribution occur on delivering power. The economy of scale of large utility scale power plants can evaporate when consideration of these power losses are included. ArborWind has picked their wind turbine size to minimize the per kwh cost yet still be competitive with utility delivered power from large power plants.
Another important advantage of distributed power is that it can help to stabilize the grid by supplying power close to the source of consumption. It is complementary with the evolving smartgrid to help balance load needs and production in the most efficient manner.