National Grid generally requires any PV plant >500kW, and sometimes smaller ones, to have what they call "effective grounding". This can take the form of either a grounding transformer/Zig-Zag transformer or a Neutral Ground Reactor. I believe both would fall under the general category of impedance grounding. I generally see Zig-Zag transformers used with Wye-G:Wye-G and NGRs used with Wye-G
elta, although I'm not sure of the exact reasons behind that.
The best way I understand it is the utility is concerned with the impact of the PV system during a nearby ground fault on the transmission system. With a solidly grounded Wye-Wye system the fault current has a return path through the PV system secondary, which could desensitize the utility ground fault detection and cause high fault currents to flow. It makes sense to me that adding impedance between the PV system neutral and ground could reduce these fault currents.
I believe there are also concerns with temporary overvoltage under some of these fault scenarios, which NGRs/Zig-Zags can mitigate. I'm less clear on how this works.
I admit I don't truly understand some of the fundamentals here, this is just what I've picked up in dealing with NGRID. It also often appears that the utilities themselves don't understand what they mean by "effective grounding". We just suck it up and buy a zig-zag to make them happy.
Solectria has published some good documentation on this issue that may be helpful.