Smart grid gets more and more popular today. Distributed generation is one of the key technologies, and especially, the integration problem of the distributed generation is an important issue. Especially, the location and capacity of the distributed generation play an important role for the performance of the distribution network. In this paper, an optimization model to minimize the loss cost of the unsatisfied demand is given. This model is based on a reliability computing method which avoiding power flow calculation in a previous work. Then the model is used on the IEEE-123 nodes experiment network and a result of five distributed generation placement is got.