The growth of the world's population, the evolution of economic and industrial activity, comfort, and the modernization of life have led to an increase in the electrical load. But the burning of fuels such as oil, natural gas, and coal to generate electrical energy causes different problems all over the world such as climate change, the greenhouse effect, and pollution, which is exceptionally harmful to human beings and dangerous for the existence of our planet. Because of the pressure of current environmental problems, power distribution companies are forced to shift from large-scale electric power generation to distributed electric power generation. In this paper, the Beta Hill Climbing algorithm is presented to solve the problem of locating and sizing distributed generation units with a unity power factor. Active power loss reduction, voltage deviation, and voltage stability index were used as objective functions. To validate the algorithm, standard IEEE-33 and IEEE-69 circuits were selected and their results were compared with other algorithms presented in the literature, with the proposed algorithm obtaining a better performance.