Self-Generation Incentive Program
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$5 million, or 60% of eligible project costs, whichever is less.
Incentive payment is capped at 3 MW.
For projects 30 kW or larger, 50% of incentive will be received up-front; 50% will be received based on actual kWh production over the first 5 years. For projects under 30kW, 100% of the incentive will be paid up front.
Waste Heat to Power: $1.02/W
Pressure Reduction Turbine: $1.02/W
Internal Combustion Engine (CHP): $0.42/W
Microturbine (CHP): $0.42/W
Gas Turbine (CHP): $0.42/W
Advanced Energy Storage: $1.31/W
Fuel Cell (CHP or Electric Only): $1.49/W
An additional incentive of 20 percent will be provided for the installation of eligible distributed generation or Advanced Energy Storage technologies from a California Supplier.
For projects with capacities greater than 1 MW, the first 1 MW receives 100% of the incentive rate, the next capacity increment above 1 MW up to 2 MW receives 50% of the incentive rate, while the last capacity increment above 2 MW up to 3 MW receives 25% of the incentive rate.
Note: Decision 17-04-017, approved by the California Public Utilities Commission (CPUC) in April 2017, made several changes to this program. Notably, the decision increases the annual budget for years 2017 - 2019 to $166 million. 85% of the additional funding will go to incentives for energy storage, with the remaining 15% going to renewable generation projects. Of the 85%, 10% will be for residential projects less than or equal to 10 kW, and 90% will be for projects greater than 10 kW. The decision also made some changes to the incentive structure for energy storage projects.
This program is currently closed while the CPUC and the utilities implement the program changes made by Decision 17-04-017, but is expected to reopen in May 2017. The summary below and the 2017 Program Handbook do not reflect the changes made by the Decision.
Initiated in 2001, the Self-Generation Incentive Program (SGIP) offers incentives to customers who produce electricity with wind turbines, fuel cells, various forms of combined heat and power (CHP) and advanced energy storage. For 2016, the incentive payments range from $0.42/W - $1.49/W depending on the type of system. Retail electric and gas customers of San Diego Gas & Electric (SDG&E), Pacific Gas & Electric (PG&E), Southern California Edison (SCE) or Southern California Gas (SoCal Gas) are eligible for the SGIP. Beginning in May 2012, all technologies previously eligible for the expired Emerging Renewables Program are now eligible for the SGIP program. Originally set to expire at the end of 2011, SB 412 of 2009 extended the expiration date to January 1, 2016, and SB 861 of 2015 further extended the expiration date to January 1, 2021. Any program funding remaining after January 1, 2021 must be returned to the utilities to reduce ratepayer costs.
Systems less than 30 kW will receive their full incentive upfront. Systems with a capacity of 30 kilowatts (kW) or greater will receive half the incentive upfront, and the the other half will be paid over the following five years based on the actual performance. The following technologies will receive the corresponding upfront incentive (or half of this figure if the system is 30 kW or larger):
Renewable and Waste Heat Capture:
- Wind turbines - $1.02/W
- Waste Heat to Power - $1.02/W
- Pressure Reduction Turbine - $1.02/W
Nonrenewable Conventional CHP:
- Internal Combustion Engine (CHP) - $0.42/W
- Microturbine (CHP) - $0.42/W
- Gas Turbine (CHP) - $0.42/W
- Advanced Energy Storage - $1.31/W
- Biogas - $1.31/W
- Fuel Cell - CHP or Electric Only - $1.49/W
The biogas incentive is an adder and may be used in conjunction with fuel cells or any conventional CHP technology. For example, a gas turbine that uses biogas is eligible for an incentive of $1.73/W. An additional incentive of 20 percent will be provided for the installation of eligible distributed generation or advanced energy storage technologies produced by California supplier.
There is no minimum or maximum eligible system size, although the incentive payment is capped at 3 MW. Further, the first megawatt (MW) in capacity will receive 100% of the calculated incentive, the second MW will receive 50% of the calculated incentive, and the third MW will receive 25% of the calculated incentive. Applicants must pay a minimum of 40% of eligible project costs (the biogas adder is not included in calculating the limit). Projects using the Federal Investment Tax Credit (ITC) must pay 40% of the eligible project costs after the ITC is subtracted from the project costs (i.e., the SGIP credit is limited to 30% of project costs).
PG&E, SCE, and SoCal Gas administer the SGIP program in their service territories, and the California Center for Sustainable Energy administers the program in SDG&E's territory. Customers of PG&E, SDG&E, SCE and SoCal Gas should contact their program administrator for an application, program handbook and additional eligibility information.
Program Administrator Contact Information:
Pacific Gas & Electric (PG&E)
Fax: (415) 973-2510
Mailing Address: Self-Generation Incentive Program
P.O. Box 770000
Mail Code B27P
San Francisco, CA 94177-001
Center for Sustainable Energy (CSE)
Phone: (858) 244-1177
Fax: (858) 244-1178
Address: Center for Sustainable Energy
Attn: SELFGEN Program
9325 Sky Park Court, Suite 100
San Diego, CA 92123
Southern California Edison (SCE)
Fax: (626) 302-6132
Address: Program Manager Self-Generation Incentive Program
Southern California Edison
1515 Walnut Grove Avenue
Rosemead, California 91770
Southern California Gas Company (SoCalGas)
Fax: (213) 244-8222
Address: Self-Generation Incentive Program Administrator
Southern California Gas Company
555 West Fifth Street, GT22H4
Los Angeles, CA 90013-1011