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Dispersed electrical generation connected into the U.S. utility grid is a promising way to increase energy production. However, to assure technical compatibility of the grid and potentially large numbers of these small generation sources, an engineering evaluation effort is required. Work is presented that is currently under way to test inverter power systems in a grid-connected environment. The technical details of the tests related to utility interface and of the special equipment required to conduct them are described. Results from testing grid-connected inverters for photovoltaic applications will be examined.