Why Solar Projects Take Years: The Interconnection Queue, Explained
If you're a landowner who has been approached by a solar developer or if you have actively explored leasing your land for a solar farm, you may be wondering why the process takes so long. Initial conversations are often filled with excitement: generous annual lease rates per acre, long-term guaranteed income, and minimal impact on your day-to-day operations. Yet months turn into years, and construction equipment seems nowhere in sight.
What causes the delay? Is the developer dragging their feet? In almost every case, the primary reason that solar projects take years is because of the administrative and technical process known as the interconnection queue. Understanding how the interconnection queue works, why it takes so long, and how to evaluate your land’s readiness for a potential solar lease can help you navigate solar development with confidence and realistic expectations.
What is the Interconnection Queue?
The interconnection queue is essentially a waiting list for new energy projects that want to connect to the power grid. To prevent overloading power lines, causing blackouts, or damaging grid infrastructure, regional transmission organizations (RTOs), independent system operators (ISOs), and local utilities require every utility-scale energy project to undergo this formal review.
When a developer submits a proposal to connect a new solar farm to the grid, the project enters the queue. Grid operators then conduct a series of engineering studies to determine:
Whether the existing transmission or distribution system can handle the additional electricity.
What grid upgrades (such as transformer replacements or new circuit breakers) are required to accommodate the power safely.
How much those required upgrades will cost and who will pay for them.
Why the Interconnection Queue is Backlogged
According to research from Wood Mackenzie, transmission infrastructure stands as the primary constraint on new energy projects nationwide. Even when projects clear administrative hurdle after administrative hurdle, grid capacity bottlenecks create massive delays. For example, in the MISO (Midcontinent Independent System Operator) region alone, roughly 70 GW of projects with executed interconnection agreements remain unbuilt, while another 40 GW are held up by permitting and financing challenges.
Several factors contribute to this growing backlog:
Surging Volume of Renewable Energy Applications: Federal tax incentives, state-level clean energy mandates, and falling equipment costs have spurred an unprecedented boom in solar, wind, and battery storage projects. Grid operators are simply overwhelmed by the volume of applications submitted each year.
Speculative Queue Positions: Historically, developers could submit multiple interconnection applications for different properties to test which locations were most viable. This led to "queue clogging," where a single developer might occupy five spots in the queue for five different property locations, intending to build on only one. When a developer withdraws an unviable project from the queue, grid operators often have to restudy all subsequent projects behind it, causing cascading delays for everyone else.
Network and Grid Upgrade Costs: If an engineering study reveals that connecting a solar farm requires $10 million in regional substation upgrades, the developer must decide if the project remains financially viable. If the cost is too high, the developer drops out. That exit triggers a restudy for the remaining projects in line, resetting the timeline for landowners waiting on those projects.
Everything After the Queue: County permits, zoning hearings, financing, and power purchase agreements all add time after the grid study.
In recent years, the time spent waiting in the interconnection queue has increased significantly. Nationally, the average time a project spends from entering the queue to reaching commercial operation has risen from roughly 2 to 3 years a decade ago to 5 years or more today.
The Stages of Solar Land Development
To understand where the interconnection queue fits into the broader timeline, it helps to view the solar development process in four main phases:
Site Control
Interconnection & Queue Studies
Final Permitting & Engineering
Construction and Commercial Operation
Decommissioning
Phase 1: Site Control (Months 1-6)
During the Site Control phase, landowners sign an option agreement or solar lease option, granting the developer exclusive rights to evaluate the property. During this time, the developer conducts initial due diligence, assesses buildable acreage and exclusion zones, and pays the landowner an upfront option fee while determining site viability. At the same time, the landowner is not permitted to enter into any other lease agreements.
Phase 2: Interconnection & Queue Studies (Years 1-3+)
The second (and longest) phase of the solar farm development process includes the interconnection and queue studies. The application is submitted to the regional grid operator or local utility, and the grid operators perform detailed system impact and facility studies to determine necessary grid upgrades and cost estimates.
Phase 3: Final Permitting & Engineering (Year 3+)
The third phase of the solar land development process is where the final permits and engineering studies are completed. This includes local zoning approval, conditional use permits (CUP), and environmental reviews. Once interconnection approval and cost estimates are secured, the developer secures power purchase agreements (PPAs), satisfies local county requirements, and secures project financing.
Phase 4: Construction & Commercial Operation (Year 4+)
Next, the solar farm and supporting equipment is constructed. This includes the solar panels themselves, mounting racks, inverters, and utility connections. Once the project is fully energized and the solar panels are producing clean energy, full lease payments commence for the landowner. Solar lease payments typically range from around $700 to $2,000+ per acre per year, without royalties.
Phase 5: Solar Farm Decommissioning (Year 20+)
Most solar leases range from 20-35 years. When the solar farm reaches the end of its operational lifespan or the lease agreement expires, one of two things occurs: the solar farm is decommissioned, or the developer may extend the lease (depending on the specific lease agreement). If they choose to end the lease and decommission the project, most solar lease agreements require the developer - not the landowner - to remove the solar panels and restore the land to its original condition pre-lease. If the site remains profitable and grid capacity is still available, the developer may propose extending the lease or upgrade the facility with new, modern solar panels and equipment. In most leases, the extension periods range from 5-10 years.
To protect the landowner, local authorities and lease terms typically require developers to post a decommissioning bond or letter of credit before construction begins. This ensures dedicated funds are held in reserve to restore the land back to its original or agricultural condition, even if the solar company goes out of business.
What the Interconnection Queue Means for Your Solar Lease
For landowners, the interconnection queue explains most of what happens, or doesn't happen, after you sign. First, keep in mind that your option period is the queue period. Developers typically make smaller option payments while the project works through studies and permitting. Many options include extensions, so land commonly stays under option for several years.
If a solar farm never gets built on your property after the option period, remember that withdrawal is normal - not personal. Because most queued projects are never built, there's a real chance your project withdraws. A well-written agreement spells out what happens next, including when the option ends and restrictions on your land are released. Always conduct due diligence for solar lease offers and have a licensed attorney review your lease documents before you sign anything.
It’s also important to remember that grid proximity drives everything. Projects close to substations and transmission lines with available capacity tend to face lower upgrade costs and have a better shot at reaching construction.
What Makes Property Attractive for Solar Development?
Because the interconnection queue takes years and costs developers hundreds of thousands of dollars in study fees, developers prioritize land with the highest likelihood of passing queue studies quickly.
Developers evaluate key criteria before investing in queue applications:
Proximity to High-Voltage Transmission Lines: The closer your property is to an existing transmission line or distribution circuit with open capacity, the lower the interconnection cost.
Proximity to Substations: Connecting directly near a substation reduces the need to build expensive off-site power lines (gen-tie lines) across neighboring parcels.
Buildable Acreage & Slope: Flat to gently sloping terrain (under 5% slope) free of wetlands, flood zones, or restricted species habitats minimizes environmental permitting delays.
Proximity to Existing Solar Projects: Areas with existing solar infrastructure often indicate favorable local utilities, clear permitting pathways, and compatible grid capacity.
A fast and free way to determine if your land qualifies for a solar farm lease is to get a free LandApp Property Report, which rates your property’s suitability on a scale of 0 to 100 within its proprietary Solar Value Index Scores. This score is calculated based on the factors listed above and more, so you can see if your property could be suitable instantly. Within LandApp’s free Property Reports, you can also see the nearest solar farm, substation, and transmission line.
If your land is suitable for a solar farm and you’re interested in leasing your land, you can list your property for lease for free on LandApp to connect directly with developers actively seeking sites. Listing is completely free, with no fees, commissions, or obligations to accept any offers. Interested developers would reach out to you directly with offers, so you stay in full control.
