Distributed generation (DG) is predicted to play an increasing role in the electric power system of the near future. There are different types of DG units from the constructional and technological points of view, which have a different influence on the distribution network. The impact of DG on the network is considered, with a more extensive discussion on the influence of DG on the network losses. The calculation of these network losses is applied in several optimisation programs to quantify an optimal size and location of the DG unit. In these programs the power quality can be taken into account but harmonic losses are rarely considered, although it is known that several DG topologies can have a negative influence on the total harmonic distortion and thus on the harmonic losses. Therefore, this paper will investigate the influence of converter-connected DG units on fundamental and harmonic losses in the distribution network.