December 18, 2020
The California Self-Generation Incentive Program is a ratepayer-funded program which offers rebates for customers who install energy storage systems at both residential and non-residential facilities. The CPUC has authorized funding of more than $1 billion through 2024 for the SGIP, with the core of aim of assisting those who live in communities which are at high risk of wildfires and power outages. The SGIP is continuously available for rebate reservations.
Eligible technologies for the SGIP include the following (of which energy storage has been the most popular in recent years):
Energy storage
Wind turbines
Waste heat to power technologies
Pressure reduction turbines
SGIP Budget
In terms of budget, 80% of the SGIP budget has been reserved for energy storage. Currently, the plan is for the SGIP to remain open until the end of 2025, or until the allocated budget has been exhausted. The 80% reserved for energy storage is further broken down into the following figures:
87% for commercial projects
13% for small residential projects (less than 10 kW of discharge capacity)
Additionally, 25% of the energy storage budget is reserved for projects in disadvantaged/LMI communities.
SGIP Incentive Structure
The program is structured using a declining rebate, spread over five steps. When the funds in one step have been exhausted, the next step becomes available—at a lower incentive rate. Full details of program incentive levels are available here on the Self-Generation Incentive Program website.
SGIP Eligibility
Eligibility for the SGIP is wide-ranging throughout the state of California. As the program is ratepayer-funded, with funding collected via surcharges on customer utility bills, the SGIP covers almost the entire state. The SGIP is available for grid-tied energy storage projects, which may be standalone or paired with a solar PV system.
As the SGIP is designed to benefit the power grid, funds are not available to systems which exist solely as backup power. There are certain operational requirements for project developers to ensure that energy storage systems reduce peak loads and provide other grid benefits. The requirements for both residential and non-residential systems are as follows:
Residential Systems: Must perform the equivalent of 52 full discharges per year.
Non-residential Systems: Must perform the equivalent of 120 full discharges per year.
Further operational requirements are available from the Self-Generation Incentive Program handbook, available here.
SGIP Calculation
Incentives for energy storage systems are based on the following factors:
Currently active incentive step
Energy capacity (kWh): Incentive is based on kWh times the incentive rate.
Power capacity (kW): This determines the budget category and whether the project will be on a performance-based incentive schedule.
Based on these factors, you can use the SGIP calculator to determine the expected incentives for your project. Click this link to download the calculator, then navigate to the storage tab.
The Incentive Payment Process
The payment process for the SGIP varies depending on the size of the project in question.
Projects 30 kW & Larger: Follow a performance-based incentive schedule. 50% paid upon project completion and verification, with the remaining 50% paid annually based on the kWh of energy discharged.
Projects Below 30 kW: Upfront rebate payments following successful installation and submission of incentive claim forms.
How to Apply for the California Self-Generation Incentive Program
Applications & required documentation are to be submitted online via the SGIP database. Detailed information regarding the California Self-Generation Incentive Program is available here at the official website. All SGIP projects must also select a pre-approved developer before application submission.
Interested in solar-plus-storage for your home or business? Get in touch with YSG Solar. YSG has been operating in the solar sector for over a decade, and is vastly experienced in the installation of energy storage systems alongside solar panels. To learn more, send us an email or call at 212.389.9215 today.
YSG Solar is a project development vehicle responsible for commoditizing energy infrastructure projects. We work with long-term owners and operators to provide clean energy assets with stable, predictable cash flows. YSG's market focus is distributed generation and utility-scale projects located within North America.
Sources:
https://www.cpuc.ca.gov/sgipinfo/
Featured Photo by Roberto Nickson from Pexels.