A distribution transformer is a type of electrical transformer that steps down high voltage electricity from the power grid to a lower voltage suitable for use in homes and businesses. It plays a crucial role in the electrical distribution system, ensuring that electricity is delivered safely and efficiently to end users. These transformers are typically located near residential areas or commercial buildings, allowing for the efficient transfer of electricity over short distances. By converting high voltage to lower levels, distribution transformers help minimize energy loss and protect electrical devices from damage due to excessive voltage.