This tool is intended to provide clarity on which interconnection pathway is required for a particular solar project.

Interconnection in Virginia is governed by the North American Electric Reliability Corporation (NERC) and Federal Energy Regulatory Commission (FERC) interconnection procedures. Under these regulations, the interconnection application process must follow one of two paths: PJM or SCC interconnection rules. The pathway required is on a case-by-case basis, depending on numerous factors and regulations.

The two main determinants are:

• The ownership of the facility to which the project wishes to interconnect
• The proposed project’s voltage

PJM

If the transmission facility to which the project wishes to interconnect is owned by PJM or required to be operated by PJM, then the developer must go through the PJM process. At a certain voltage, utilities are unable to handle transmission and sub-transmission power and must turn the interconnection process over to PJM. PJM only operates transmission and sub transmission lines that a member facility or utility has turned over to the PJM process. Through this handover, PJM becomes in charge of the interconnection process; developers must receive interconnection approval through the PJM process. Utility thresholds for turning the process over to PJM differ based on the utility, with 69kV often used as a basis. However, distribution cooperatives can own up to 138kV facilities and maintain ownership. Project developers should inquire with the utility in their region about the threshold used.

Utility-owned, SCC

If the project is owned by a utility and the utility maintains control of the interconnection process at the elected voltage, the project should apply for interconnection through the SCC process.

Some projects that apply for interconnection through the SCC are also required to go through the PJM process. Per PJM Manual 14H Section 2.1.1, a PJM New Service Request is required to “interconnect a Generating Facility to distribution facilities located in PJM Region that are used for transmission of power in interstate commerce, and to make wholesale sales using the output of the Generating Facility.” Projects that plan to sell the power generated from their proposed solar facility must therefore receive a Wholesale Market Participation Agreement (WMPA) from PJM. For projects of this nature, PJM studies are performed concurrently with state reviews. Project developers and utilities find it difficult to apply for approval through the SCC and PJM processes at the same time because the structure, timelines, and requirements differ greatly.

Notes

• The timing of each interconnection study in the overall permit application process varies between projects. Generally, developers look to have completed at least one interconnection study, or even have finished all interconnection studies, before beginning local/state permitting. This is due to the large cost and uncertainty of the interconnection process.
• In March 2024, NERC proposed a ruling in which projects that “have or contribute to an aggregate nameplate capacity of greater than or equal to 20 MVA” and are connected to at least 60 kV will need to register with NERC and be subject to forthcoming restrictions. Check NERC resources for updates to this proposal.