To cope with the challenge of more photovoltaic (PV) installation, the impact of the distributed PVs on the short-circuit current in distribution grids is analyzed. It is pointed out that the traditional fault location approach based on the fault current is fully adequate in the case that the PVs are installed on the upstream buses. The worst condition in the case of PVs installed on the feeders is given and the adaptability ranges of traditional fault location approach are deduced. Two fault location methods are proposed for the cases of the traditional fault location approach not satisfied, such as, the reclosing based method and the fault direction detection based method. The conclusions are drawn that no more than 1.5 times of the rated current may be seen from the PV whether three phase short-circuit or two-phase short-circuit occur. Almost all of the cable and overhead line based feeders meet the requirements of the traditional fault location approach when the PV installed no more than 25% of the capacity of the feeders. The two proposed fault location methods are feasible.