DG-integrated distribution system planning is an imperative issue since the installing of distributed generations (DGs) has many effects on the network operation characteristics, which might cause significant impacts on the system performance. One of the most important characteristics that mostly varies because of the installation of DG units is the power losses. The parameters affecting the value of the power losses are number, location, capacity, and power factor of the DG units. In this paper, a new analytical approach is proposed for optimally installing DGs to minimize power loss in distribution networks. Different parameters of DG are considered and evaluated in order to achieve a high loss reduction in the electrical distribution networks. The algorithm of the proposed approach has been implemented using MATLAB software and has been tested and investigated on 12-bus, 33-bus, and 69-bus IEEE distribution test systems. The results show that the proposed approach can provide an accurate solution via simple algorithm without using exhaustive process of power flow computations.