February 23, 2026 Solar development in 2026 is being shaped less by equipment availability and more by how projects interface with the grid. Interconnection has moved from a procedural step to a defining design factor.
Utility requirements are tightening, queues remain crowded, and technical standards are being enforced more consistently. As a result, projects that account for grid behavior early are advancing, while those relying on late-stage adjustments are encountering delays, redesigns, or downsizing.
This shift is changing how photovoltaic systems must be engineered from the outset.
The Move From Procedural to Performance-Based Interconnection
By 2026, most ISOs and utilities have fully implemented reforms tied to FERC Order 2023 and 2023-A. The intent is clear: prioritize projects that are demonstrably ready and technically sound.
Cluster studies operating under “First-Ready, First-Served” frameworks require higher-fidelity engineering earlier in the process. Electrical layouts, inverter selections, and control strategies are now reviewed as indicators of project viability, not placeholders to be refined later.
In markets with centralized interconnection queues, projects now need substantially more engineering completed before they can even enter the queue. Projects entering the queue with incomplete assumptions face greater uncertainty.
Why 2026 Rules Are Reshaping Site Layout Decisions
Interconnection risk is increasingly influencing physical system design. Cluster-based cost allocation and shared network upgrades mean projects can inherit expenses driven by overall grid congestion, not just individual impact.
This has pushed engineering teams to evaluate grid conditions well before finalizing layouts. Substation loading, feeder constraints, and nodal congestion are now part of early feasibility discussions.
At the site level, this can result in:
- AC system sizing aligned with realistic export assumptions.
- Layouts designed to accommodate phased capacity or future adjustments.
- Inverter strategies that balance performance with interconnection flexibility.
These decisions reflect a broader shift toward engineering systems that protect long-term project economics, not just maximize theoretical output.
IEEE 1547-2018 is Now Embedded in Utility Review
Although IEEE 1547-2018 has been in place for several years, 2026 marks a turning point in enforcement. With more states formally adopting the standard, advanced inverter functionality is now a baseline requirement.
Utilities are expecting PV systems to actively support grid stability through voltage regulation, frequency ride-through, and coordinated protection behavior. These capabilities must be demonstrated clearly during review, not assumed.
As a result, inverter settings, plant-level controls, and communications architecture are increasingly reviewed as an integrated system. Projects that address these elements during design tend to experience fewer iterations during interconnection approval.
Flexible Interconnection and the Rise of Hybrid Design
Another defining trend for 2026 is the growing use of flexible interconnection. Utilities are allowing projects to connect to constrained grids by limiting output through software-based controls rather than requiring immediate physical upgrades.
This approach shifts the focus from static peak assumptions to operational performance across varying conditions. Dynamic modeling, export limiting, and curtailment strategies are now part of standard engineering conversations.
Battery storage is playing an expanding role in this context. Under current FERC guidance, storage can often be added without forfeiting queue position, allowing systems to manage peak output while preserving interconnection rights.
As a result, PV engineering is increasingly converging with hybrid system design, where solar, storage, and controls are developed together.
Designing for Approval Momentum, Not Just Compliance
Many interconnection delays stem from designs that technically meet code requirements but fail to address utility concerns around grid behavior, upgrade exposure, or operational risk.
KMB’s solar engineering approach emphasizes early coordination between electrical, structural, and utility-facing design elements. With experience across more than 2,400 solar projects nationwide, the focus is on creating systems that move efficiently through review by anticipating questions rather than responding to them late in the process.
Whether it’s through maximizing rooftop solar design for commercial buildings or reducing grid dependence with solar and EV charging, both highlight how early engineering decisions influence long-term system performance and approval timelines.
Solar Engineering for a Grid That Will Keep Evolving
We can expect that the regulatory environment will continue to change beyond 2026. Interconnection standards, grid constraints, and utility expectations are always evolving alongside increasing electrification and load growth.
Projects that succeed will be those engineered with flexibility, realistic grid assumptions, and a clear understanding of how utilities evaluate risk. Solar engineering is no longer limited to producing compliant drawings.
It is a strategic tool for keeping projects moving.
At KMB Design Group, solar engineering is built around performance, compliance, and foresight. The objective is not simply to design systems that meet today’s rules, but to help projects get approved and built in a grid environment that continues to shift. Reach out to learn more and plan your next project.