Simplifying Solar Connections: The Utility Interconnection Process Explained

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Generating electricity from the Sun is a challenge on its own. Many solar-powered home stay connected to the grid even with solar panels. The utility grid is a complex distribution network, and you have to get permission from the grid operator to connect your home to the grid.


In this article, you will learn all about solar interconnection.

What Is Interconnection?

In this process, an individual asks for and is granted permission by the local utility company to connect their home to the utility grid.

Cost And Timeline

The timeline depends upon your system size and utility company. It can vary from 2 to 4 weeks.

The price of interconnection is dependent on a few things:

  • Your home’s location and the location of the electric grid.
  • The utility company
  • The size of your solar system. 

These factors can cause prices to range from zero to a few hundred dollars which will be 

included in the total cost of your system.

The Process

You can’t start generating clean energy until you're given the green light from your utility provider. This process is divided into two steps:

  • Permission to install.
  • Permission to operate.

However, some utilities are an exception since they only need a request for permission to operate. Whatever the case, the end goal is the same: permitting you to have a properly designed and installed solar energy system to generate clean and safe energy.


If you have an Authority Having Jurisdiction (AHJ - the local building department that controls your area), you also need their approval for your solar energy system installations.

Permission To Install

Some utilities will require you to present an application as permission to install. This will be submitted by your solar company, in which the overall system design, electrical plans, and equipment specifications will be reviewed. Its purpose is to ensure the correct working of the solar system.

The Steps

The steps for your interconnection might look like this:

  1. Your signature on all documents as the utility account holder.
  2. The engineering plan for the solar power system.
  3. Supplement, engineering, homeowners’ insurance documents.
  4. Application reviewed by the utility company for credibility and authenticity.
  5. Application verified by the utility company if all conditions are met.

Your application will only be approved if grid capacity is confirmed and all requirements are met. The application can be cancelled between steps 2 and 4. Now, you’ll have to provide additional information or make corrections for your approval to be granted.

Permission To Operate

After installation and passing all the local jurisdiction inspections, your solar contractor will submit permission to operate or a PTO application. Permission to install focuses on a review of the installation plans, while permission to operate is a review of the completed installation.

The Procedure

Your solar company will submit another application to the utility. The timeline will look something like this:

  1. Installation photos
  2. Verified and passed inspection documents.
  3. Permission to operate interconnection documents.
  4. Your signature on all the documents.
  5. Supplement documents required by your utility.
  6. Checking your solar power system (It can be a virtual or on-site inspection).
  7. The last step is the verification step, the same as permission to install.

Your electric meter will be converted to a bi-directional meter. This will measure the precise amount of energy, in kilowatt-hours (kWh), travelling from the grid to your home and the extra solar energy produced back to the grid. If you’ve cleared permission to operate, you can safely use solar panels.


However, there’s always the possibility of your application being rejected. There can be several reasons for this:

  • The solar system failed the inspection.
  • The inspector didn’t clear the work order by calling the utility to confirm the inspection was passed.
  • The customer’s utility company account has a hold or other issues.

The Importance of Interconnection

To have a safe electric system, interconnection is necessary, which is why the utility company scrutinises each detail at the inspection so that everyone stays safe and away from harm. Once the connection is established, the grid can turn off electricity to your home in case of power outages to prevent damage.


You can try solar islanding if you don’t want to be inconvenienced by power outages. In this, a solar battery is added to the solar panels so that your home can have electricity even during power outages.

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