Renewable or non-conventional electricity generators employed in DG systems or Microgrids are known as distributed energy resources (DERs) or microsources. One major aim of Microgrids is to combine all benefits of non-conventional/ renewable low-carbon generation technologies and high-efficiency combined heat and power (CHP) systems. In this regard, the CHP-based DERs facilitate energy efficient power generation by capturing waste heat while low-carbon DERs help to reduce environmental pollution by generating clean power. Prospective DERs range from micro-CHP systems based on Stirling engines, fuel cells and micro turbines to renewables like solar photovoltaic (PV) systems, wind energy conver sion systems (WECS) and small-scale hydroelectric generation. Choice of a DER very much depends on the climate and topology of the region and fuel availability. Possibilities of using biofuels and application of various storage technologies like flywheel batteries and ultracapacitors are also being investigated across the globe in the field of Microgrid research. Most of the countries are coming up with schemes to support the exploitation of the renewable/non-conventional energy resources for meeting up global carbon commitment.