Abstract: The traditional neutral grounding method is easy to lead to over-compensation and under-compensation, and the location error of grounding fault is large. A new neutral grounding method is designed to solve the problem of over-compensation and under-compensation of fault current by using active arc suppression technique and parallel connection of median resistance, single-phase-to-ground fault location based on the weighted multi-source shortest path algorithm (Floyd algorithm) can be used for fault location of multiple transmission lines. Finally, by comparing the maximum fault current curve and error analysis curve of three different grounding modes, it is found that the fault current of the proposed method is the most stable, and the fault current is only between 15 A and 20 A, the maximum error rate of fault location is less than 3%, which proves the superiority of the grounding mode and the feasibility of the design.