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California State Rebates: Self-Generation Incentive Program (SGIP)

Everything you need to know about the California Self-Generation Incentive Program (SGIP)

Key Details

  • The California State Self-Generation Incentive Program (SGIP) offers incentives for electricity and energy storage generated through wind turbines, fuel cells, CHP systems, and advanced energy storage in private residences.
  • The SGIP aims to reduce GHG emissions, lower demand, and reduce customer electricity bills.
  • Pacific Gas & Electric (PG&E), Southern California Edison (SCE), Southern California Gas Company (SoCal Gas), and Center for Sustainable Energy are the Program Administrators of the Self-Generation Incentive Program.
  • 88% of SGIP funds are allocated to energy storage technologies

Self-Generation Incentive Program (SGIP)

Launched in 2001, the Self-Generation Incentive Program (SGIP) rewards users for generating their own electricity through wind turbines, fuel cells, various types of combined heat and power (CHP), and advanced energy storage.

Assembly Bill 209 of 2022 expanded the program's eligibility to include solar photovoltaic systems incorporating energy storage technologies in private residences.

The SGIP aims to change the market for distributed energy resource (DER) technology and contribute to lowering GHG emissions. The program is also geared towards decreasing demand and reducing customers' electricity consumption and bills.

As of 2023, Participants in the SGIP include retail electricity and gas consumers of Pacific Gas & Electric (PG&E), Southern California Edison (SCE) or Southern California Gas (SoCal Gas), and the Center for Sustainable Energy (CSE).

The SGIP program offers incentive rates for renewable generation and energy storage budget categories.

Budget Allocation

As of February 2023, the budget allocation of the SGIP program is divided as follows:

Energy Storage Technologies – 88% of funds

  • Large-scale storage (greater than 10 kW) - 10%
  • Small residential storage (equal to or less than 10 kW) – 7%
  • Residential equity – 3%
  • Non-residential equity – 0%
  • Equity resiliency (residential and non-residential) – 63%
  • Heat pump water heaters (general) – 5%
  • SJV Pilot budget – 0%

Renewable Generation Technologies – 12% of funds

Energy Storage General Budget

88% of the incentive funding is set aside for energy storage technologies. Of this proportion, 7% is explicitly designated for small residential projects with a capacity of less than or equivalent to 10 kW.

Energy Storage Equity Budget

Regardless of the project scale, the incentive budget allots 3% to the residential energy storage equity budget for eligible residential (single-family and multifamily low-income housing). The non-residential energy storage equity budget receives no funding from the incentive budget.

Renewable Generation Budget

Generation technologies are given 12% of the incentive funding; there is no step-down structure for incentives.

Equity Resiliency Budget

Unused money from the Generation Technology budget has been used to create a $100 million Equity Resiliency Budget.

Heat Pump Water Heater (HPWH) Budget

For equity initiatives, a $4 million budget for heat pump water heaters (HPWH) has been set aside. Furthermore, 5% of the incentive money is set aside for general market HPWHs.

SJV Pilot Budget

A sum of $10 million has been put aside from SCE and PG&E’s unspent non-residential equity budget.

Incentive Rates for SGIP

The Self-Generation Incentive Program's budget is split into renewable generation and energy storage.

Renewable Generation Incentive Rates

  1. The level of incentives for renewable energy projects is $2.00/W, and there is no step-down structure.
  2. The level of incentive for renewable generation resiliency adder is $2.50/W. When added to the base incentive of $2.00/W, this makes a total incentive of $4.50/W for projects that use renewable energy for resiliency purposes.

Energy Storage Incentive Rates

The total incentive funds for energy storage are split into five steps for large storage and seven steps for small storage in homes. Incentives for energy storage usually go down by $0.05/Wh between each step.

However, if the previous incentive step fills up within ten calendar days in all Program Administrator territories, the incentive for large-scale storage projects that aren't claiming the ITC will drop to the next step.

The small residential carve-out will cost $0.10 per kWh instead of $0.05 per kWh. For equipment bought before December 31, 2021, the incentive rate for large-scale storage projects that claim the ITC will stay 72% higher than the incentive rate for large-scale storage projects that don't claim the ITC in all steps.

The table below provides a breakdown of the energy storage incentive rates.

Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7
Energy Storage General Budget $/Wh $/Wh $/Wh $/Wh $/Wh $/Wh $/Wh
Large Storage (>10kW) $0.50 $0.40 $0.35 $0.30 $0.25 N/A N/A
Larger Storage Claiming ITC $0.36 $0.29 $0.25 $0.22 $0.18 N/A N/A
Residential Storage (<= 10kW $0.50 $0.40 $0.35 $0.30 $0.25 $0.20 $0.15

The SGIP Application Process

Applications are generally assigned an incentive rate and reviewed in the sequence in which they are received. However, if the number of applications received on a single day exceeds the amount of funding available in a given Program Administrator's territory for a particular budget and step, a lottery will be held.

Applications are subject to the Program Administrator's incentive rates to which they pertain.

Application Submission

  • All SGIP applications and required documents must be submitted through the SGIP online application database at www.selfgenca.com at all stages of the application procedure.
  • Applications that are mailed, emailed, faxed, or physically delivered will not be accepted.
  • Companies or individuals must establish an account and register users at www.selfgenca.com in order to submit an application and/or project documentation.
  • Registered Applicants can make and edit applications after their accounts have been confirmed.
  • Only applications that are completely filled out can be assigned incentive money or entered into a lottery.
  • Only full applications will be considered for a reservation. Multiple submissions or duplicate applications for the same job will be rejected.
  • To submit an application, applicants must consent to the Terms of Use for the SGIP online application database. The Terms and Conditions can be obtained at www.selfgenca.com.

California’s Self-Generation Incentive Program Administrators

Potential incentives applicants can access information about the program and apply for incentive funding by contacting the following Program Administrators:

Pacific Gas & Electric (PG&E)
Website: www.pge.com/sgip
Email Address: selfgen@pge.com

Telephone: (415) 973-6436
Mailing Address: PG&E Payment Research
Attn: Self-Generation Incentive Program
PO Box 997310
Sacramento, CA 95899

Center for Sustainable Energy® (CSE)
Website: www.energycenter.org/sgip
Email Address: sgip@energycenter.org
Telephone: (858) 244-1177

Mailing Address: Center for Sustainable Energy
Attn: Self-Generation Incentive Program
3980 Sherman Street,
Suite 170
San Diego, CA 92110

Southern California Edison (SCE)

Website: www.sce.com/SGIP

Email Address: SGIPgroup@sce.com
Telephone: (626) 302-0610
Mailing Address: Self-Generation Incentive Program
Southern California Edison
P.O. Box 800
Rosemead, CA 91770-0800

Southern California Gas Company (SoCalGas)

Website: https://www.socalgas.com/for-your-business/powergeneration/self-generation-incentive
Email Address: selfgeneration@socalgas.com
Mailing Address: Self-Generation Incentive Program

Southern California Gas Company
555 West Fifth Street, GT20B8
Los Angeles, CA 90013-1011