The Interconnection Challenge
As hundreds of solar projects are ready to provide Americans with reliable and affordable energy, grid delays are stopping them in their tracks. Even after a record-breaking 50 gigawatts of new solar capacity were installed in 2024, more than 2,300 gigawatts of clean energy projects remain stuck in interconnection queues, waiting years for a path to connect to the grid.
This is nearly double the total amount of electric capacity installed on the U.S. grid now.
Solar’s historic growth and scalability make it a critical energy option for meeting America’s surging energy needs, but outdated planning processes are standing in the way. That’s why the Solar and Storage Industries Institute (SI2) is leading practical grid connection reforms to help clear the jam.
In our recent white paper, “Game Changing Interconnection Reform”, our experts provide clear reforms to reduce solar and storage project delays and accelerate project deployment. These reforms build on FERC’s 2023 Order and show that much of the backlog is caused by disconnected planning processes and an outdated funding model.
“FERC’s order laid the groundwork for improvements, but many interconnection issues remain. Our reforms are focused on cutting wait times, clarifying costs and keeping more solar and storage projects moving so that the grid can support a clean energy future,” said Dave Gahl, Executive Director, SI2.
SI2’s Clear Path Forward
The white paper outlines how smarter, more integrated transmission planning, paired with an entry queue fee can streamline the interconnection process, reduce costs and bring more solar and storage projects online faster.
Key SI2 reforms include:
- Integrating the interconnection queue into transmission planning: Current transmission planning processes operate independently and on different timelines. Instead of treating them as separate processes, experts at SI2 recommend creating a pathway for projects that have met certain milestones and demonstrated their readiness into the regional planning process.
This would force planners to think strategically and broadly about projects and their benefits to the entire system.
- Realign incentives with an Entry Queue Fee: Under the current customer funding model, interconnection customers are paying for substantial grid upgrades for which they are not solely responsible.
SI2’s entry fee proposal removes the financial risk and has the interconnection customer paying a nonrefundable entry fee that is based on project size, as part of the initial project request. This fee would be applied towards system network upgrades identified in the grid operator’s long-term regional plan.
This approach “pools” costs and distributes them more fairly between developers and grid operators, so that the burden of the total costs to upgrade would no longer be the sole responsibility of just the developer.
Looking Ahead
In the coming months, SI2 will be releasing a new short report that explains how the Southwest Power Pool’s combined comprehensive planning process and associated generator interconnection reforms – including a new fee structure – are a model for other ISO/RTOs.
“Overall, our research on interconnection aims to open the door to faster clean energy deployment with fewer surprises and delays for everyone involved,” said Gahl.
