Solar

Interconnection Agreement The utility contract that lets your solar system legally connect to the grid

Alex Rivera By Alex Rivera, Senior Solar Editor · Updated 2026-06-09
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An Interconnection Agreement is the contract with your local utility that authorizes your solar system to connect to the grid and, where allowed, export power back to it. You must have this agreement in place before your system can be switched on, because it leads to Permission to Operate (PTO), the final green light that lets you flip the system into service. The agreement spells out the technical and safety requirements your installation must meet so it doesn't harm the grid or utility workers. Both timelines and fees vary by utility, so the wait between submitting your application and receiving approval depends on where you live and how busy your utility is. Until the agreement is signed and PTO is granted, running your panels can violate your utility's rules and put your installation out of compliance.
Also Known As
Grid Interconnection Agreement Utility Interconnection Application Net Metering Agreement PTO Agreement
Used in Context
  1. Your installer submits the interconnection agreement to the utility once your panels pass the local building inspection.
  2. Homeowners who book through Dreamy Leads often ask how long the interconnection agreement will take before they can turn their system on.
  3. Because the utility hadn't returned the signed interconnection agreement, the system sat dark for weeks despite being fully installed.
Related Terms
Solar Net Metering The utility billing policy that credits solar owners for surplus electricity sent to the grid Solar NEM 3.0 (Net Billing Tariff) California's solar export rule that pays avoided-cost rates instead of full retail credit Solar Photovoltaic (PV) System A solar electric setup that turns sunlight into usable electricity Solar Kilowatt-Hour (kWh) The unit of energy used for electricity billing—one kilowatt of power used for one hour Solar Solar Easement A recorded agreement that protects your property's access to sunlight from being blocked
Frequently Asked Questions

Can I turn on my solar system before the agreement is approved?

No. You must have a signed interconnection agreement and Permission to Operate before switching your system on. Running panels without approval can violate your utility's rules and create safety and compliance problems. Wait for the utility's final green light before activating the system.

How long does an interconnection agreement take?

Timelines vary by utility. Some approve applications quickly, while others take weeks or longer depending on their workload and review process. Your installer typically submits the paperwork after inspection, then you wait for the utility to issue Permission to Operate. Ask your installer or utility for a local estimate.

Are there fees for an interconnection agreement?

Fees vary by utility. Some charge application or processing costs, while others may not. The amount depends on where you live and your specific utility's policies. Check with your local utility or installer to confirm what costs, if any, apply to your interconnection in your area.

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