This law modifies the law 20.571 on electricity generation (http://climatepolicydatabase.org/index.php/Distributed_Generation_Law_(Law_20.571)) . Its objective is to foster the development of residential-scale distributed generation systems. Through this law, the allowed nominal capacity increases up to 300MW. The law was updat4ed in 2024 to increase the maximum allowed installed capacity, expand the incentives for renewable self-consumption, and streamline the grid integration process.

Spanish: La ley número 21.118 modifica la ley general de servicios eléctricos, con el fin de incentivar el desarollo de las generadoras residenciales. Esta ley aumenta la potencia nominal aceptada hasta los 300 kW.