What is SGIP? California’s Self-Generation Incentive Program
While our Golden state is known for its sunshine, beaches, and spectacular weather, there is a lot of unpredictability that residents need to be prepared for. Wildfires, earthquakes, power outages, and greenhouse gas emissions are skyrocketing, resulting in strenuous circumstances for California residents. This is where SGIP can help prepare CA residents for these unpredictable times by offering a rebate program on battery systems in the home. By installing a battery system to your home, energy and power can be stored and used for the times that your area is at risk for fires or power outages. Solar and battery backup systems also help offset the SDG&E peak hours, between 4-9 p.m., that is another huge benefit for customers as well.
What is it?
SGIP is California’s Self-Generation Incentive Program for battery energy storage that can function in the event of a power outage. The state of California will provide rebates on battery systems installed based on the storage capacity of the battery. Not only are batteries crucial for emergency preparedness, they’re also beneficial for storing energy for PV solar owners.
How do I Apply?
After your battery installation, Allied Energy will apply for the program on the customer’s behalf. It does require the customer to provide any necessary documents and signatures that are needed for the incentive, but Allied Energy will notify the customer throughout the process. It can take up to two years to fund once the application is submitted to SGIP.
PG&E, SCE, SoCalGas, and SDG&E customers are eligible for a rebate of about $250/kilowatt-hour. Between the SGIP incentive and the Federal Tax Credit, about 25% of the cost of an average energy storage system is covered. There are also two other types of eligibility criteria for rebates: Equity and Equity Resiliency. Equity covers about 85% ($850 per kilowatt-hour) of the cost for an average energy storage system while Equity Resiliency covers about 100%($1,000 per kilowatt-hour) of the cost for an average energy storage system.
To be eligible for equity, customers must:
- Live in single-family home and home is subject to resale restrictions
- Live in single-family home and have participated in California’s Solar Initiatives Single Family Affordable Solar Homes or Disadvantaged Communities Single Family Solar Homes Program
- Live in an apartment that is low income housing that includes at least five rental units, and either be in a DAC or in an apartment building where residents have incomes at or below 60% area median income
- Live in an apartment building where the property already has participated in the Solar on Multifamily Affordable Housing Program or the Multifamily Affordable Solar Housing Program
To be eligible for equity resiliency, customers must:
- Have experience two or more utility Public Safety Power Shut-offs or live in a Tier 2 or 3 High Fire Threat District
- Live in a multifamily deed-restricted housing or a single-family home subject to resale restrictions
- Currently enrolled in a utility Medical Baseline Program
- Notified utility of serious illness and/or life-threatening condition
- Home relied on electric pump wells for water
SGIP has a tiered rate structure, meaning that as more batteries are installed in houses, over time, the incentive amount will decrease. See below for an incentive rate breakdown.
|Project Type||Current Step||Incentive Rate|
|Large-scale storage (>10 kW)||Step 3||$350/kWh|
|Large-scale storage (>10 kW) with ITC||Step 3||$250/kWh|
|Residential storage (≤10 kW)||Step 6||$200/kWh|
|Residential equity storage (≤10 kW)||Step 5||$850/kWh|
|Residential equity resiliency storage (≤10 kW)||Step 5||$1,000/kWh|