This paper has adopted the new bio-inspired Manta-Ray Foraging Optimization (MRFO) algorithm for optimal allocation of multiple Distributed Generation (DG) units attached to Radial Distribution Systems (RDSs) in order to reduce the total energy loss of the studied system. The DG units are optimized to work with a unity power factor (UPF) and optimal power factor (OPF) during a 24-h time-varying demand. The MRFO algorithm optimized single, two, and three DG units. The total energy loss and energy-saving during the time-varying demand are calculated and compared with the original case. The MRFO algorithm behavior is compared to the Particle Swarm Optimization (PSO) and Atom Search Optimization (ASO) algorithms regarding energy loss and energy-saving values. The standard 69-bus RDS is used as a test system. Considerable improvements in energy saving, loss reduction, and voltage profile are achieved after installing DG units, mainly when operating with optimal power factors. The MRFO algorithm achieves energy losses of 817.91, 751.08, and 730.25 kWh with 1, 2, and 3 DG units with UPF allocations, respectively. On the other hand, when the DG units are optimized to work with OPF, the MRFO achieves energy losses of 233.24, 142.08, and 106.79 kWh with the same number of DG units, respectively. Furthermore, the MRFO algorithm has efficient behavior compared with the PSO, ASO, and other algorithms for different operations and conditions.