This thesis provides a tool to determine the maximum capacity, of a given power grid, when connecting distributed photovoltaic parks including the optimal allocation of the parks taking the power grid configuration into account. This tool is based on a computational model that evaluates the hosting capacity of the given grid through power flow simulations. The tool also integrates a geographic information system that links suitable land areas to nearby substations that can host photovoltaic parks. The mathematical model was tested on different cases in the municipality of Herrljunga, Sweden, where it was determined to be possible to connect 47 photovoltaic parks of 1MWp to the power grid as well as the most appropriate substations to allocate them to without the need for grid reinforcements. Additionally, the concept of grid cost allocation is presented and briefly discussed while analysing the results in relation to national energy targets.