This paper presents a novel method to reduce the inrush currents produced by interconnecting induction generators. The method is based on the sequential energization of the contactors and a grounding resistor connected at the neutral point of a wye-connected stator. Analytical developments are presented, which permit to determine the optimum value of the neutral resistor directly. Theoretical and simulation analysis show that the proposed method can be almost as effective as the traditional three series resistor method. The proposed method requires only one resistor and one bypass contactor and is therefore more cost-effective than the traditional methods.