Navigating Interconnection Delays for Commercial Solar Projects in the PJM Queue

For Illinois businesses in the ComEd territory, the decision to "go solar" is often driven by a compelling ROI and a commitment to corporate ESG goals. However, once the contract is signed and the engineering is done, many projects hit a massive roadblock: the PJM Interconnection Queue.

PJM Interconnection, the RTO that manages the grid in northern Illinois, is currently working through a multi-year backlog of energy projects. These "interconnection delays" are more than just a nuisance; they can significantly impact your project's financial feasibility, your ability to claim tax credits, and your long-term energy planning. This guide explains why the queue is jammed, what the recent reforms mean for your Illinois business, and how you can navigate the gridlock to keep your solar project on track.

PJM's Billion-Dollar Backlog: What Interconnection Delays Mean for Your Solar ROI

To understand the delay, you have to understand the sheer scale of the transition. PJM currently has hundreds of gigawatts of capacity waiting in the queue—more than the total existing power on the entire PJM grid.

The Impact on Your Project

1. Capital Locking: If you've already committed capital to a project, a 3-year delay in interconnection means your "payback period" starts 3 years later, significantly lowering the project's Net Present Value (NPV).
2. Tax Credit Risk: Federal tax credits like the Investment Tax Credit (ITC) have specific "start of construction" and "placed in service" requirements. While the Inflation Reduction Act extended these, long delays can still create uncertainty for your tax planning.
3. Incentive Volatility: State-level incentives like Illinois Shines operate on "blocks." If your project is delayed, you may find that the incentive levels have dropped or that the program rules have changed by the time you are ready to connect.

To understand why this queue is specifically slower in the PJM region, see our resource on solar interconnection queue in PJM: why it's slower.

Behind the Gridlock: The Top 3 Causes of PJM Interconnection Delays Today

How did the grid operator for the world's most sophisticated energy market end up with a 5-year backlog?

1. Volume vs. Velocity

The PJM study process was designed in an era when they studied one massive coal plant every few years. Today, they are studying thousands of smaller solar and storage projects. The shear volume of "interconnection requests" (IRs) has increased by 1,000% over the last decade.

2. The "Serial" Study Process

Until recently, PJM used a "first-come, first-served" serial study process. If a project at the front of the queue dropped out, PJM had to "re-study" all the projects behind it to see how the change impacted the grid. This led to a "cascading" effect of delays.

3. "Speculative" Projects

Because it was historically cheap to "get in line," many developers submitted projects to the queue before they had secured land or financing. These "speculative" projects clogged the queue, making it impossible for "ready" projects (like yours) to move forward.

The Proactive Playbook: 5 Expert Strategies to Navigate the PJM Queue and Keep Your Project on Track

While you can't force PJM to work faster, you can make strategic decisions that minimize your risk.

1. Focus on "Behind-the-Meter" (BTM) Projects: If your solar array is designed primarily to offset your own usage (Net Metering) and is under a certain size (typically 2 MW or 5 MW depending on the utility), it may qualify for an "expedited" study process through ComEd rather than the full PJM queue.
2. "Right-Size" Your Interconnection Request: Don't ask for more capacity than you actually need. Larger interconnection requests trigger more complex (and slower) "System Impact Studies."
3. Perform a "Pre-Application" Study: Before formally entering the queue, have an engineer perform a preliminary study of your local substation's capacity. If the substation is already "congested," your interconnection costs and delays will be significantly higher.
4. Choose an Experienced EPC Partner: Work with a solar Engineering, Procurement, and Construction (EPC) firm that has a track record of successfully navigating the PJM process. They know the "shortcuts" and the pitfalls to avoid.
5. Monitor the "Reform" Transition: PJM is currently transitioning to a new process. Understanding which "Transition Cluster" your project falls into is critical for predicting your timeline.

Read more about the regulatory changes in how FERC Order 2023 impacts interconnections.

PJM Queue Reform is Here: Is Your Solar Project Ready for the New Interconnection Process?

In 2023, the Federal Energy Regulatory Commission (FERC) and PJM approved a massive overhaul of the interconnection process.

The Shift to "First-Ready, First-Served"

The new process moves away from the old serial approach and toward a "cluster" study approach.

• Milestone Requirements: To stay in the queue, developers must now hit specific milestones regarding land control and financial deposits. This effectively "kicks out" the speculative projects, clearing the way for real commercial projects.
• Fast-Track for Clean Energy: The reform includes a "Fast-Track" path for smaller projects and those that don't require major grid upgrades.

Is Your Project "Ready"?

Under the new rules, "readiness" is the new currency. To move to the front of the line, your Illinois project must have:

• Binding Site Control: Proof that you have the legal right to build on the land.
• Financial Commitment: Significant "readiness deposits" that are forfeited if the project drops out of the queue.

Conclusion

Interconnection delays are the single biggest challenge facing large-scale commercial solar in northern Illinois today. However, by understanding the mechanics of the PJM queue and the impact of the new reforms, Illinois businesses can make smarter, data-driven decisions. The "Ready" project—one that is properly sized, well-funded, and expertly managed—will be the one that bypasses the gridlock. In the race to 100% clean energy in Illinois, the most important step is often the one that happens before a single panel is installed: getting your project through the queue and onto the grid.

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Sources:

• PJM Interconnection - Queue Reform Overview
• FERC Order No. 2023 - Interconnection Reform
• Solar Energy Industries Association (SEIA) - Interconnection Resources
• Illinois Power Agency (IPA) - Long-Term Renewable Resources Procurement Plan
• Clean Energy States Alliance (CESA) - Navigating the Interconnection Process