Solar Energy Regulatory Relief Act of 2011 - Directs the Secretary of Energy (DOE) to: (1) establish a program to provide competitive grants and/or challenge grants to local governments that have adopted best practices for solar permitting for properties located in the United States, (2) provide voluntary certification and recognition for such governments, and (3) implement specified criteria for awarding such grants.
Authorizes the use of funds for competitive grants for: (1) training and the development of materials and tools for making the local permitting process for solar energy systems more standardized, efficient, and less expensive; and (2) solar energy system deployment projects or programs to pilot new permitting strategies or processes. Authorizes the use of funds for challenge grants for: (1) solar energy system deployment projects, and (2) programs to pilot new permitting strategies or processes.
Requires the Secretary to rescind grant funds provided to any grant recipient that receives funds based on a commitment to adopt best practices for solar permitting but that is unable to implement the steps necessary to adopt such practices.
Makes each eligible entity receiving funds responsible for a matching amount not to exceed 50% of the funds provided.