Note: A.B. 209 of 2022 extended eligibility for this program to residential solar photovoltaic systems paired with energy storage systems. The CPUC will need to develop rules before these new incentives are available.
Initiated in 2001, the Self-Generation Incentive Program (SGIP) offers incentives to customers who produce electricity with wind turbines, fuel cells, various forms of combined heat and power (CHP) and advanced energy storage. Retail electric and gas customers of San Diego Gas & Electric (SDG&E), Pacific Gas & Electric (PG&E), Southern California Edison (SCE) or Southern California Gas (SoCal Gas) are eligible for the SGIP. Beginning in May 2012, all technologies previously eligible for the expired Emerging Renewables Program are now eligible for the SGIP program. Originally set to expire at the end of 2011, SB 412 of 2009 extended the expiration date to January 1, 2016, and SB 861 of 2015 further extended the expiration date to January 1, 2021. The program was later extended through January 1, 2026.
Systems less than 30 kW will receive their full incentive upfront. Systems with a capacity of 30 kilowatts (kW) or greater will receive half the incentive upfront, and the the other half will be paid over the following five years based on the actual performance. The following technologies will receive the corresponding upfront incentive (or half of this figure if the system is 30 kW or larger):
Generation Technologies as of October 2022:
Wind turbines: $2.00/W
Other Generation: $2.00/W
Max Biogas Adder: $0.60/W
Storage Technologies as of October 2022:
Large Scale Storage Not Claiming ITC: $0.25/Wh - $0.30/Wh depending on utility
Large Scale Storage Claiming ITC: $0.18/Wh - $0.22/Wh depending on utility
Small Residential Storage: $0.15/Wh - $0.20/Wh depending on utility
Residential Storage Equity: $0.85/Wh
Non-Residential Storage Equity: $0.85/Wh
Equity Resiliency: $1.00/Wh
The biogas incentive is an adder and may be used in conjunction with fuel cells or any conventional CHP technology. For example, a gas turbine that uses biogas is eligible for an incentive of $1.73/W. An additional incentive of 20 percent will be provided for the installation of eligible distributed generation or advanced energy storage technologies produced by California supplier.
There is no minimum or maximum eligible system size, although the incentive payment is capped at 3 MW. Further, the first megawatt (MW) in capacity will receive 100% of the calculated incentive, the second MW will receive 50% of the calculated incentive, and the third MW will receive 25% of the calculated incentive. Applicants must pay a minimum of 40% of eligible project costs (the biogas adder is not included in calculating the limit). Projects using the Federal Investment Tax Credit (ITC) must pay 40% of the eligible project costs after the ITC is subtracted from the project costs (i.e., the SGIP credit is limited to 30% of project costs).
PG&E, SCE, and SoCal Gas administer the SGIP program in their service territories, and the California Center for Sustainable Energy administers the program in SDG&E's territory. Customers of PG&E, SDG&E, SCE and SoCal Gas should contact their program administrator for an application, program handbook and additional eligibility information.
Center for Sustainable Energy (CSE)
Phone: (858) 244-1177
Fax: (858) 244-1178
Address: Center for Sustainable Energy
Attn: SELFGEN Program
9325 Sky Park Court, Suite 100
San Diego, CA 92123
Southern California Edison (SCE)
Fax: (626) 302-6132
Address: Program Manager Self-Generation Incentive Program
Southern California Edison
1515 Walnut Grove Avenue
Rosemead, California 91770