This paper is based on the observation that there is a improved interest in small scale electricity generation. The paper covers a survey of existing small scale commonly called distributed generation technologies and then move on a discussion of the major advantages and issues of distributed electricity generation. Different technologies are summarized on the basis of their advantages and disadvantages. Small-scale generation is also commonly called on-site generation, dispersed generation, embedded generation or decentralised generation. And in conclusion, an attempt is made to define the distributed generation concepts more precisely and its application in Rural Electrification to electrify those area where grid is not available