Understanding the Self-Generation Incentive Program (SGIP) for Energy Storage

You can read how to create and model the SGIP incentive on OpenSolar by clicking this link here.

The Self-Generation Incentive Program (SGIP) provides a rebate for installing energy storage technology at both residential and non-residential facilities. You can read the full details of the incentive here. There are three eligibility criteria for SGIP rebates:

1. Equity Resiliency - $1000/kWh incentive aimed to cover 100% of the cost of the storage system
2. Equity - $850/kWh incentive aimed to cover up to 85% of the cost of the storage system
3. General Market - customers from PG&E, SCE, SDG&E and SoCal Gas are eligible for a General market SGIP rebate of around $150-200/kWh for residential customers, and $180-300 kWh for non-residential customers. This incentive would cover around 15-30% of the cost of the battery.

Eligibility Criteria

1. Equity Resiliency - mainly targeted at communities, households and businesses located in areas that are at a higher risk of being disconnected to power, or in high fire threat districts, AND if disconnection to power could be life-threatening. You can read more about the eligibility criteria in detail here. 
2. Equity - mainly targeted at communities, households and businesses located in disadvantaged communities, or live in an apartment or house that is considered low-income housing. You can read more about the eligibility criteria in detail here.
3. General Market - for customers that might not meet the requirements for Equity and Equity Resiliency may be eligible for the general market incentive. You can read more about the eligibility criteria from each of the respective utilities:
   • PG&E
   • SCE
   • SDG&E
   • SoCalGas

What is the incentive amount?

You can see the latest incentive amount for each of the different categories of the incentive here.

How is the Incentive Calculated and Paid out?

• The federal tax credit (ITC) applies to the project cost after the SGIP rebate is applied. So if the gross project costs $10,000 and your SGIP rebate is worth $1,500, then the 30% tax credit applies to the $8,500 remaining after the SGIP rebate is applied.
• The incentive amount is capped at $5 million per project site, and cannot exceed the total cost of the project.
• Must enroll in a time-varying rate with a peak period starting at 4pm or later and with a summer peak to off-peak price differential of 1.69 or more, if such rate is available.
• The energy storage system must have a single-cycle round-trip efficiency greater than 85%.

Residential Customers:

• Residential systems receive an upfront incentive (via check or wire transfer) for the full amount upon project completion and site verification - although this process can take up to 6 months to a year from project completion to the customer receiving the check.
• Residential systems are required to discharge a minimum of 52 full-discharges per year.

Non-Residential Customers:

• Non-residential customers receive 50% of the incentive upfront, and the remaining 50% paid annually based on the actual performance of the system over the next 5 years. If the performance of the system exceeds the minimum requirement, the customer could get the remaining 50% of the incentive amount paid out earlier than 5 years.
• Non-residential systems are required to discharge a minimum of 104 full discharges per year.
• Non-residential systems are also required to reduce GHG emissions by 5 kg CO2/rebated energy capacity (kWh) on an annual basis. Projects that do not reduce GHG by 5kg CO2/kWh will have their performance based incentive (PBI) reduced by $1/kg CO2 emitted above this level and capped at 100% of the annual PBI.

Incentive Declines based on storage Duration (hours)

Incentive Declines based on Total Energy Capacity (kWh)