The Self Generation Incentive Program (SGIP) is an incentive program that was designed to encourage customers of local utilities to install technologies that reduce their demand on the grid, which will reduce California’s greenhouse gas emissions and meet reduction targets.
The SGIP rebate program is provided by the California Public Utilities Commission Commercial ( CPUC ).
Customers of Pacific Gas and Electric Company (PG&E) , Southern California Edison (SCE) , Southern California Gas Company (SoCalGas) , and San Diego Gas & Electric (SDG&E) are included in the program.
The SGIP is one of the longest-running and most successful programs of its kind in the United States. The program was initially established as a response to the energy crisis of 2001 and focused on smaller demand response systems. Since 2001, the SGIP has been modified to include energy storage technologies and increased the size range of projects in an effort to reduce even more greenhouse gas emissions.
Qualifying technologies include advanced energy storage systems, fuel cells, and renewable generation projects that contain biogas or bio waste heat to power technologies, wind turbines, pressure reduction turbines, internal combustion engines, microturbines, and gas turbines.
In this article, we will focus on the average energy storage system, including battery storage system, and how the SGIP rebate will help reduce your utility expenses, power shutoffs, and turn your critical facility into a sustainable property.
How does the SGIP rebate work? What is the process of receiving SGIP rebates?
Pre-approval is required to reserve the funds for your project and you have twelve months to complete the project after receiving approval. You will receive the rebate after the SGIP application process is completed and your battery energy storage system is installed.
Applying for the SGIP rebate can be complicated and confusing, especially if you don’t have experience applying for energy efficiency rebates. Your best bet is to go with a commercial energy storage installer, like WattLogic , who can ensure you receive the battery storage system that fits your goals and the rebate application process is followed correctly.
The SGIP rebate amounts are about $350 per kilowatt hour, or a battery storage incentive that covers approximately 35 percent of the cost of the energy storage system.
For example, if you install a battery storage project with 275 kWh of capacity, you can receive approximately $96,000 to help with the costs of that project. If you pair this technology with a solar photovoltaic (PV) array, the incentive rate drops to $.25/Wh, but you are then eligible for the federal solar investment tax credit as well! In this scenario, an estimate for this project (if done in 2021-2022) could yield approximately $69,000 from the SGIP program and $50,000 in tax incentives.
SGIP also offers higher rebates for non-residential customers who are non-profit organizations, emergency response providers, small businesses located in disadvantaged or resiliency communities, among other specially identified institutions. These types of rebates require specific criteria to be met in order to be eligible.
How can the SGIP benefit your business?
The biggest benefit you’ll experience from the SGIP is the ability to install energy storage projects at your facility for a greatly reduced cost. In many cases, the SGIP rebate makes an energy storage system at a commercial facility a reality, instead of an item on an energy efficiency wish list.
On top of the money you will save from the SGIP program, an energy storage system is one of the best ways to protect your facility from an unreliable grid and steep peak demand pricing.