(The Center Square) – Virginia is launching a new grant program aimed at helping local governments and school divisions cover grid connection costs that can delay or derail public solar projects.

Lawmakers set aside $2 million for the Solar Interconnection Grant Program, which opened for applications Monday through the Virginia Department of Energy.

The program is aimed at interconnection costs, which can include utility-required transformers, relays, metering changes, protection equipment, engineering and other upgrades needed before a solar facility can connect to the electric distribution system.

Virginia Energy says those expenses can make public-sector solar projects harder to complete when the required upgrades exceed available capital or other funding.

The funding comes from Virginia’s general fund in fiscal 2027. The Department of Energy may use up to 15% of the amount for staffing, or as much as $300,000.

An earlier House budget amendment sought $5 million for the program before lawmakers ultimately approved $2 million.

The program was established through Senate Bill 659 and House Bill 683, identical bills passed by the General Assembly. The law took effect July 1 and directs the Division of Renewable Energy and Energy Efficiency to award competitive grants to public bodies, including local governments and school divisions.

Priority must be given to projects on previously developed sites.

Grants may cover eligible interconnection costs up to 25% of the total solar project cost or $600,000, whichever is less, according to Virginia Energy.

“Virginia’s public bodies should not have to put strong solar projects on hold because the cost of connecting to the grid is beyond reach,” Virginia Department of Energy Director Vince Maiden said. “This program will help communities move viable projects forward, reduce long-term energy costs, and provide better information about the interconnection challenges that public-sector solar projects face across the Commonwealth.”

The program is temporary and expires July 1, 2027. The law also requires Virginia Energy to report annually on the program to the chairs of the House Appropriations and Senate Finance and Appropriations committees by Nov. 1.

Applications are due Oct. 2.

This post was originally published on The Center Square.