SGIP Incentive Rates

The Self-Generation Incentive Program (SGIP) provides funding to support reductions of greenhouse gas emissions and on-site electric demand through the installation of qualifying distributed energy technologies designed to meet all or a portion of a customer’s electrical needs.

Energy storage systems are incentivized based on the Wh-AC of the system.

For information on how incentives are calculated, which budget category you qualify under and how to size your system to determine the appropriate Watt-hour (Wh) or Watt (W) please see the current SGIP Handbook or review our FAQs.

 

Incentives Per Watt-hour (Wh)

Energy storage incentive funds are divided across five steps for large storage and seven steps for small residential storage. Incentive rates for the currently active step are displayed in the following table.

Energy Storage
General Budget
Step 1
$/Wh
Step 2
$/Wh
Step 3
$/Wh
Step 4
$/Wh
Step 5
$/Wh
Step 6
$/Wh
Step 7
$/Wh
Large Storage (>10 kW)$0.50$0.40$0.35$0.30$0.25N/AN/A
Large Storage Claiming ITC$0.36$0.29$0.25$0.22$0.18N/AN/A
Small Residential Storage (<=10 kW)$0.50$0.40$0.35$0.30$0.25$0.20$0.15
General Market Non-Residential Storage Resilience Adder ($/Wh)0.150.150.150.150.150.150.15

Energy storage incentives generally decline by $0.05/Wh between incentive steps. However, if the previous incentive step becomes fully subscribed within 10 calendar days across all Program Administrator territories, the incentive decline to the next step for large-scale storage projects not claiming the Investment Tax Credit (ITC) and the small residential carve-out will be $0.10/Wh rather than $0.05/Wh.

 

Incentive Duration Decrease (Projects claiming resiliency adders)

Energy storage incentives are reduced as the duration of energy storage (Wh) increases in relation to the rated capacity (W). The duration decrease for projects claiming adders for resiliency capabilities is shown in the following schedule.

Discharge duration (hours)Percentage of incentive rate
0-2 hours100%
Greater than 2-4 hours100%
Greater than 4-6 hours50%
Greater than 6 hours0%
 

Incentive Duration Decrease (Projects not claiming resiliency adders)

Energy storage incentives are reduced as the duration of energy storage (Wh) increases in relation to the rated capacity (W). The duration decrease for projects not claiming adders for resiliency capabilities is shown in the following schedule.

Discharge duration (hours)Percentage of incentive rate
0-2 hours100%
Greater than 2-4 hours50%
Greater than 4-6 hours25%
Greater than 6 hours0%

 

Incentive declines and caps based on energy capacity

Energy storage incentives are paid up to 6 MWh of capacity with tiered incentive rates. For energy storage projects that are greater than 2 MWh, incentives decline according to the following schedule.

Energy capacityPercentage of incentive rate
0-2 MWh100%
Greater than 2-4 MWh50%
Greater than 4-6 MWh25%

 

Equity Resiliency

The Equity and Equity Resiliency budgets provide increased incentives to residential and non-residential customers with critical resiliency needs. Please refer to the SGIP Handbook to determine if you are eligible for one of our equity budget categories. 

Incentive rates for the Equity and  Equity Resiliency budgets are displayed in the following table.

Equity and Equity Resiliency$/Wh
Equity$0.85
Equity Resiliency$1.00

 

Renewable generation incentives per watt (W)

Renewable generation projects have a standardized base incentive. A renewable generation resiliency adder is available for qualifying projects intended for resiliency purposes. Please refer to the SGIP Handbook to determine if you are eligible to receive a resiliency adder. 

Renewable generation incentive rates are displayed in the following table.

Technology typeIncentive rateResiliency adder
Renewable Generation Technologies$2.00/W$2.50/W
 

Incentive declines based on generation capacity

SGIP incentives are paid for up to 3 MW of capacity with tiered incentive rates. For projects that are greater than 1 MW, the incentives decline according to the following schedule.

Energy capacityPercentage of incentive rate
0-1 MWh100%
>1 MW-2 MW75%
>2 MW- 3 MW50%

Need more information? Check out our Frequently Asked Questions or email us at sgip@energycenter.org.

 

Please visit the SGIP Program Metrics page for the current incentive rates, current available funds and step opening dates for all budget categories.