Strategically sited grid-support photovoltaic (PV) applications have been proposed to provide value (cost savings) to electric utilities experiencing transmission and distribution (T&D) system overloads. These applications can potentially defer transformer and transmission line upgrades, extend equipment maintenance intervals, reduce electrical line losses, and improve distribution system reliability. This research presents and tests a method to calculate the reduction in distribution system electrical line losses. It also describes how to optimize plant size, plant location along a distribution feeder, and load transfer from an adjacent feeder. Results at Pacific Gas and Electric Company indicate that a 0.50 MW PV plant at Kerman, California, has $37,000 in energy loss savings value over the plant's life with additional value due to capacity loss savings. These results are site specific.