Neutral Grounding Resistor is used to avoid damages and disturbances due to the ground faults. Resistor is fitted between the neutral of a Generator or a Transformer and the Earth / Ground (explained below in the schematic diagram) to limit this current and giving protection devices enough time to react. This also produces a value that is sufficiently low to prevent damaging fault currents to the power generation, distribution and other associated equipments, yet high enough to operate clearing relays.

Resistor grids are formed in Punched Stainless, Wire Wound, Formed Stainless Steel and Edge Wound design; these elements are provided with mica or ceramic insulator of suitable voltage rating.