IREC Study Grades Each State’s Interconnection Practices

Why It Matters

Efficient interconnection is essential for scaling solar and storage, directly affecting utility costs and rate growth. The grades give regulators and investors a clear benchmark to drive policy reforms.

Key Takeaways

• New Mexico earned the sole A grade in interconnection
• Eight states improved grades; Oregon and New Jersey rose to B
• Thirteen states or territories lack statewide interconnection regulations
• Over 80% of states score C or below, showing lag
• IREC’s ten‑category roadmap aims to speed DER connections

Pulse Analysis

The Interstate Renewable Energy Council (IREC) released its annual “Freeing the Grid” report, a benchmark that grades every state’s rules for connecting distributed energy resources (DERs) such as rooftop solar and battery storage. Using ten performance categories—cost, timeline, transparency, and more—the study assigns grades from A to F. In the 2026 edition, New Mexico stands alone with an A, while nine states achieve B or higher. The remaining 41 jurisdictions fall at C or lower, and 13 lack any statewide interconnection framework, highlighting a fragmented national landscape.

Eight states improved their grades since the 2023 report, most notably Oregon and New Jersey, which vaulted from D to B, and Maine, which moved up to B as well. These gains often stem from recent legislative reforms that set clear timelines, cap interconnection fees, and require utilities to publish standardized application portals. Yet the fact that more than four‑fifths of states still sit at C or below signals persistent bottlenecks that can delay projects, inflate costs, and contribute to rising electricity rates—issues regulators are under pressure to curb.

IREC’s report does more than rank; it offers a ten‑category policy playbook that states can adopt to streamline interconnection, reduce backlog, and lower upfront costs for developers. For utilities, embracing these recommendations can improve grid reliability by integrating clean‑energy resources faster, while legislators gain a data‑driven justification for updating outdated statutes. As the United States pushes toward a 2030 net‑zero target, efficient interconnection will be a linchpin for scaling solar and storage, making the “Freeing the Grid” grades a critical metric for investors and policymakers alike.