A new measure, the distributed generation impact factor (DGIF), is used for evaluating the impact of newly introduced distributed generators on a networked distribution or a transmission system. Distribution systems are normally operated in a radial structure. But the introduction of distributed generation needs load flow calculation to analyze the networked system. In the developed framework, the potential share of every generation bus in each line flow of a networked system can be directly evaluated. The developed index does not require the solution of power flow equations to evaluate the effect of the distributed generation. The main advantage of the developed method lies in its capability of considering simultaneous outputs of multiple generation sites.