Solar Interconnection Grant Opportunity

The Virginia Department of Energy is soliciting applications for the Solar Interconnection Grant Program, which provides funding to Virginia public bodies to offset interconnection costs for distributed solar facilities on previously developed sites, with applications due October 2, 2026 and questions due September 18, 2026.

Grant awards will not exceed 25 percent of total solar project cost or $600,000, whichever is less. The program distributes approximately $2,000,000 in total funding across eligible applicants. Virginia Energy reserves the right to make partial awards or reject applications at its discretion.

Eligible interconnection-related costs include transformers, relays, direct transfer trip equipment, SCADA/telemetry systems, metering modifications, protection equipment, engineering studies, and other utility-required infrastructure necessary to complete grid interconnection. The anticipated performance period is 6 to 18 months.

Applicants must be Virginia public bodies and maintain active registration in eVA.virginia.gov. Compliance with Virginia procurement laws and prevailing wage requirements consistent with federal Davis-Bacon standards is mandatory. Indirect costs are capped at 10 percent or less of requested funding. Construction contracts are subject to retainage of up to 5 percent.

Awardees must execute a contract agreement with Virginia Energy, submit monthly invoices by the 15th of each month, and provide quarterly progress reports documenting completed work and applicable metrics. Awardees are required to maintain payroll records demonstrating prevailing wage compliance.

Award notifications are expected within ten to twelve weeks following the October 2 deadline.