Solar leads as U.S. grid interconnection agreements grow 33%

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In 2024, U.S. grid interconnection agreements surged by 33% year-over-year, reaching a record 75 GW, with solar and energy storage projects accounting for 75% of this total, or 58 GW. The report from Wood Mackenzie highlights that improvements in the interconnection process have led to increased efficiency, despite a 9% decrease in new project entries and a 51% rise in withdrawals of non-viable projects since 2022. Research analyst Kaitlin Fung noted that these reforms are beginning to accelerate interconnection studies.

Looking ahead, Wood Mackenzie anticipates that solar will continue to dominate interconnection agreements in 2025, having represented half of all signed agreements since 2019. The report also indicates regional disparities in interconnection success rates and processing times, with Texas' ERCOT leading in both metrics due to its efficient queue process. In contrast, California's CAISO faces challenges with low success rates attributed to speculative projects. Additionally, while natural gas interconnection requests have increased, successful approvals have declined by 25% since 2022, underscoring ongoing challenges in the sector.