Distributed generation expansion planning (DGEP) has been frequently reported in the literature around the world. In this scope, renewable technologies which are considered as a kind of distributed generations are developing due to their environmental benefits. However, only a few renewable energies have proven to be competitive so far, while their economic viability is also limited to certain regions of the world. In this paper, an encouraging mechanism is proposed in favor of clean technologies in the planning process. This mechanism is defined based on a grant function of emission not polluted which is paid to DG owners to promote renewable and clean technologies. In the planning process, a multi-objective optimization algorithm is applied to produce a Pareto set of optimal planning schemes by taking into account different objective functions (cost and grant functions). The best planning scheme among the Pareto set is chosen based on a composite utility which are obtained through a Monte Carlo simulation of uncertain situations. Distributed generation technologies which are considered in this paper are conventional and renewable technologies, namely photovoltaic (PV), wind turbine (WT), fuel cell (FC), micro turbine (MT), gas turbine (GT), and reciprocal engine (RE). To assess the ability of the proposed method, a typical distribution system is used for expansion planning under two environmental scenarios. (C) 2009 Elsevier Ltd. All rights reserved.