Interconnection is a separate process from your building permit, run by a different organisation, with its own requirements — and it comes last, after the array is built and inspected. It is where DIY installers most often lose a month they did not budget for, and occasionally where they discover a piece of equipment that will not be approved.

Grid-connected home energy equipment subject to utility interconnection rules
Anything that can export to the grid falls under your utility's interconnection agreement.

What the utility is actually protecting

Their concern is not your house. It is the grid and the people who work on it. An interconnected system must disconnect itself automatically when the grid goes down — anti-islanding — so crews are never working on lines your array is energising. Almost every requirement below traces back to that.

The equipment requirement that can end a project

Your inverter almost certainly must be listed to UL 1741 and conform to IEEE 1547, and many utilities maintain an approved equipment list naming specific models. This is the requirement that catches people who bought a cheap unlisted inverter from a marketplace: the array is built, the inspection passed, and the utility will not approve the equipment.

Check your utility's approved list before ordering the inverter. It costs one search and prevents the single most expensive mistake available in a DIY interconnection.

What the application asks for

  • A single-line diagram — the same one from your permit set is usually accepted
  • Equipment specifications for the inverter, and often the panels, with listing information
  • Total system size in kW AC, which is what any capacity limits apply to
  • Your account details and the service address
  • Proof of permit and inspection sign-off
  • A licensed contractor's details, which some utilities require regardless of what your building department allowed
  • An application fee, commonly $0-500

The sequence

  1. Apply early. Many utilities accept an interconnection application before installation. Running it in parallel with your permit rather than after inspection can save a month.
  2. Technical review. The utility checks your equipment and the impact on their circuit. Usually two to six weeks.
  3. Interconnection agreement. You sign; this is the contract governing export, and it is where your net metering or export tariff is set.
  4. Meter exchange, if needed — many older meters cannot measure export and must be swapped for a bidirectional one.
  5. Witness test, in some territories: a utility representative verifies the system disconnects correctly on grid loss.
  6. Permission to Operate. Written authorisation. Only now may the system run.

Do not energise before PTO

This is worth stating plainly. Running a grid-tied system before receiving Permission to Operate breaches your interconnection agreement and can result in disconnection of your service. It is also, in a system that has not yet had its anti-islanding behaviour verified, exactly the situation the whole process exists to prevent.

The wait is genuinely frustrating — a finished array in full sun doing nothing — and it is not optional.

Read the export terms before you sign

The interconnection agreement is where your export compensation is defined, and that number affects your payback more than any equipment choice. Three things to establish: the export rate in cents per kWh, whether it is locked and for how long, and whether existing customers are grandfathered when the tariff changes.

The difference between full retail net metering and an avoided-cost export rate can be several years of payback on the same hardware — the net metering guide works through how much. If your export rate is poor, it is worth knowing before commissioning, because it may change whether you add storage.

Common reasons applications stall

  • Inverter not on the approved list — the expensive one, and entirely avoidable
  • System size above a threshold triggering a longer engineering study
  • Circuit saturation where many neighbours already have solar, which can require an upgrade study
  • Missing inspection sign-off, which most utilities will not proceed without
  • No licensed contractor named, where the utility requires one

None of this applies to a genuinely off-grid system with no utility connection, which is a large part of why off-grid DIY is so much simpler — see grid-tied versus off-grid versus hybrid.