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A big portion of the electricity generated is wasted in the form of losses. Losses occur at all levels of the power system- generation, transmission, and distribution. However, at least 75% of the total system losses occur in the distribution system. We present a study of real power losses reduction at the distribution level due to the use of solar thermal water heaters (STWHs) for Mayaguez, Puerto Rico. The electric generation displaced by STWHs was reflected in the thermoelectric generation plant, Costa Sur. The reduction of residential demand in Mayaguez was calculated to be 10 MW a day. The offset of emissions was considerable due to the generation displaced.