Most States Face Regulatory Logjams on Solar-Plus-Storage as Interconnection Procedures Lag

Why It Matters

Outdated interconnection rules inflate costs and stall clean‑energy projects, slowing the national renewable transition. State adoption of BATRIES recommendations could accelerate solar‑plus‑storage deployment and improve grid resilience.

Key Takeaways

• Only New Mexico scores A on interconnection rules
• 13 states receive F grades, lacking standardized procedures
• BATRIES toolkit shifts focus from nameplate to export capacity
• Fee caps and fast‑track screens aim to cut project delays

Pulse Analysis

The interconnection landscape for distributed solar and storage remains a patchwork of state rules, creating costly delays for developers. The Freeing the Grid scorecard, a joint effort by IREC and Vote Solar, evaluates 56 criteria across ten operational categories, revealing that a majority of states still rely on outdated, one‑size‑fits‑all procedures. While New Mexico stands out with an A‑grade, many states fall into C, D, or F categories, indicating weak screening thresholds, opaque fee structures, and a lack of statewide standards. These regulatory gaps translate into longer queue times, higher upgrade costs, and reduced project bankability, hampering the broader clean‑energy agenda.

To address these challenges, the Building a Technically Reliable Interconnection Evolution for Storage (BATRIES) project offers a practical toolkit. Central to its approach is redefining "export capacity" as the metric for grid impact, replacing the inefficient nameplate‑capacity model that forces unnecessary distribution upgrades. BATRIES also embeds export limits into fast‑track technical screens, allowing small inverter‑based systems under 50 kW (or 25 kW export) to bypass lengthy studies. Additionally, the framework proposes clear fee caps—$300 for systems up to 25 kW, $2,000 for up to 5 MW, and a $2,500 ceiling on supplemental review fees—providing developers with predictable cost structures.

If state regulators adopt these standardized, transparent policies, the solar‑plus‑storage market could see a surge in project velocity and investor confidence. Faster approvals and capped fees would lower the financial risk that currently leads to project cancellations, while flexible design‑modification pathways keep projects in the queue rather than being evicted. Such reforms would not only accelerate clean‑energy capacity additions but also enhance grid flexibility, positioning utilities to better manage high‑penetration DER environments. The industry and policymakers now have a clear, data‑driven roadmap to modernize interconnection processes and unlock the next wave of renewable growth.