Federal solar credit ended Dec 31, 2025
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Glossary

Permission to operate (PTO)

Updated

The utility's written approval to switch on a grid-connected solar system.

Permission to operate is the utility's approval to turn on and connect a solar system to the grid. It comes after the system is installed, the local building or electrical inspection has passed and the utility has reviewed or inspected the interconnection, sometimes after installing a new meter. Running a system before PTO can violate your utility agreement. The PTO date often matters financially: export rate lock-ins, some incentive deadlines and the start of lease payments can be tied to it. In Arizona, for example, state law delays recurring lease payments until the utility grants permission to operate. Ask your installer who submits the interconnection application and how long PTO usually takes in your area.