SGIP Frequently Asked Questions
The Self-Generation Incentive Program (SGIP) offers financial incentives for the installation of clean, efficient and cutting-edge technologies that are designed to meet all or a portion of a customer’s electric energy needs.
SGIP is a utility ratepayer-funded program. It is paid by and available to utility ratepayers of SDG&E, SoCal Gas, SCE and PG&E.
The Center for Sustainable Energy administers the SGIP for SDG&E customers. PG&E, SCE and SoCal Gas utilities administer the SGIP for their respective service territories.
For program overview, background information and project statistics, visit CSE's SGIP Program Page. You may find additional statewide information and program reports on the California Public Utilities Commission website
Yes. Systems are eligible for a reservation up to 12 months after receiving authorization to interconnect with the grid from the electric utility.
While there is no limit to the number of systems on a project site, there is a limit to the overall capacity on site. The combined kW capacity of all the technologies may not exceed peak demand over the last 12 months. SGIP incentivizes systems up to 6MWh for storage. Systems sized 10 kW and less are exempt from sizing requirements.
Yes. Technologies and resources qualifying for the Net Energy Metering (NEM) program are still eligible to participate in SGIP. Participation in the NEM program will not affect a project’s SGIP incentive payment.
SGIP projects that also qualify for the feed-in tariff are allowed to export a percentage of their output to the grid. Once on-site electric load has been met, excess generation of electricity may be exported to the grid. The amount exported to the grid may not exceed 25% of on-site consumption on an annual basis.
Yes. Industrial, agricultural, commercial, municipal and residential customers of the participating utilities are all eligible.
For the consideration of new technologies and/or SGIP rule changes, formal Program Modification Guidelines (PMG) have been developed. A Program Modification Request form must be submitted in writing to an SGIP Program Administrator. See section 4.2.7 of the SGIP Handbook for more information.
Incentives for a proposed system are calculated by multiplying the capacity of the system, [rated capacity (kW) for generation projects, or energy capacity (kWh) for energy storage projects] by the incentive rate for the appropriate technology type. For more information on rated capacity criteria, see the SGIP Handbook.
Federal tax credits are available for certain SGIP technologies. For up-to-date information, visit the Database of State Incentives for Renewables & Efficiency at www.dsireusa.org.
Systems less than 30 kW receive an up-front incentive (via check or wire transfer) for the full amount upon project completion and site verification. Systems 30 kW and larger receive 50% of the incentive up front, and the remaining 50% is paid on the actual performance of the system over the next five years. See the SGIP Handbook for more information.
The maximum incentive is capped at $5 million per project site.
Incentive levels decline based on demand. Incentives are allocated across incentive steps and when the funds in each step are fully allocated, the incentive rate drops incrementally in the next step. See the SGIP Handbook for more information on incentive steps and rates for each budget category. Visit the SGIP Program Metrics page for information on current incentive steps and rates.
The SGIP incentive may be influenced by a number of factors, including technology, equipment and fuel type, system size, project cost, other incentives, federal tax credits and existing SGIP capacity on site. Performance-based incentives are influenced by the system’s actual performance and achieved GHG emissions reductions.
Calculate the estimated incentive for your proposed project using the SGIP Calculator Models. Remember that the reserved incentive amount may change if there are changes made to the project.
SGIP incentives are divided into five budget categories: Generation, Large-scale Energy Storage, Small Residential Energy Storage, Residential Storage Equity, and Non-Residential Storage Equity. You may view the latest CSE Budget Summary to see incentive funds remaining for each category.
There are many types of financing available to your business. To check which products and programs may apply to your self-generation project check CSE’s Online Financing Guide