Solar Interconnection Grant Program
The Virginia General Assembly established the Solar Interconnection Grant Program through Senate Bill 659 and House Bill 683 (2026) to address one of the barriers facing public-sector solar development: the cost of interconnecting distributed solar energy systems to the electric grid. While the cost of solar equipment has declined substantially over the past decade, interconnection costs, including utility-required system upgrades, protection equipment, engineering studies, and other infrastructure improvements, have become an increasingly important factor affecting project feasibility.
These costs can present a challenge for local governments, school divisions, and other public bodies that seek to invest in clean energy while remaining responsible stewards of taxpayer funds. Even projects with strong economic returns may be delayed, downsized, or cancelled when interconnection costs exceed available capital budgets or available grant funding. As a result, otherwise viable public solar projects may fail to move forward despite providing long-term energy savings.
The Solar Interconnection Grant Program, administered by the Virginia Department of Energy (Virginia Energy), is intended to help offset these costs, enabling public bodies to pursue solar projects that reduce energy expenditures and increase the deployment of clean energy across the Commonwealth. The program also supports the Commonwealth's broader interest in understanding the nature and extent of interconnection challenges facing public-sector projects.
In addition to providing financial assistance, the Program serves an important data collection and policy development function. Current information regarding interconnection costs, timelines, study requirements, and upgrade drivers is limited and often project specific. By collecting standardized information from grant applicants and recipients, Virginia Energy will develop a more comprehensive understanding of the barriers affecting public solar deployment. This information will support the Department's required reports to the General Assembly and may help inform future policy efforts related to distributed energy resource interconnection.
Solar Interconnection Grant Program Application
Solar Interconnection Grant Program offers grant funding to public bodies to offset costs associated with the interconnection of solar facilities located on previously developed project sites, as defined in § 56-576. Funding may be used for interconnection-related costs that are necessary to connect an eligible solar facility to the electric distribution system, including transformers, relays, direct transfer trip (DTT), SCADA/telemetry, metering modifications, protection equipment, engineering, and other utility-required infrastructure necessary to complete interconnection.
Eligibility: Virginia public bodies, as defined in § 2.2-3701, installing distributed solar projects
Total amount of funding available: Approximately $2,000,000
Anticipated Period of Performance: 6 -18 months
Applications are due 11:59pm, October 2, 2026.
To Apply, Create Account and Log In Here
Link to Full Program Guidance: Here
