Interconnection shake-out: 160 GW of solar advances as 12% of projects bow out

AI generated summary

The interconnection landscape for solar energy in the U.S. is undergoing significant changes, with approximately 160 GW of solar projects advancing while around 12% of projects, totaling over 130 GW, have withdrawn from the interconnection queue. This decline is attributed to stricter interconnection rules imposed by regional grid operators, which have led to increased costs and heightened requirements for project approval. As a result, the total interconnection capacity in the queues has decreased from 2,596 GW in 2023 to 2,290 GW in 2024, with solar experiencing the largest drop of 11.9%.

Despite the overall reduction, about 386 GW of capacity has secured signed interconnection agreements, indicating that a portion of projects is still progressing. Texas leads with over 100 GW of signed agreements, while the Western Interconnection holds an additional 83 GW. The analysis highlights that many projects withdrawing from the queue had been waiting for years, with some facing deadlines due to the impending reduction of tax credits under the Inflation Reduction Act. As developers reassess their timelines, the future of solar interconnection remains uncertain, but the current landscape reflects both challenges and opportunities for the sector.