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ARTICLE · 24 FEBRUARY 2026

Interconnection Deposit Financing: A Novel Approach

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Topping the early to-do list for developers of renewable energy projects is snagging a spot in the interconnection queue.

United StatesFinance and Banking
Edward J. Hammond
Edward J. Hammond
Sarita Olson
Sarita Olson
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Topping the early to-do list for developers of renewable energy projects is snagging a spot in the interconnection queue. This task has become particularly important as high demand has led to long wait times to interconnect – estimated at four to nine years for wind, solar and battery storage projects – so developers often seek a place in line even before permitting and site control is in place. In exchange for a spot in the interconnection queue, developers must pay costly, though initially refundable, interconnection deposits that vary by project size and interconnection provider. As the project hits certain milestones in development, the interconnection deposits become non-refundable.

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