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Incentives/Policies for Energy Efficiency

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Self-Generation Incentive Program   

Last DSIRE Review: 02/18/2015
Program Overview:
State: California
Incentive Type: State Rebate Program
Eligible Efficiency Technologies: CHP/Cogeneration
Eligible Renewable/Other Technologies: Wind, Fuel Cells, CHP/Cogeneration, Advanced Energy Storage Technologies, Pressure Reduction Turbine, Biogas, Waste heat to power/Bottoming-Cycle CHP, Fuel Cells using Renewable Fuels
Applicable Sectors: Commercial, Industrial, Residential, Nonprofit, Schools, Local Government, State Government, Fed. Government, Institutional
Amount: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.

Wind: $1.07/W
Waste Heat to Power: $1.07/W
Pressure Reduction Turbine: $1.07/W
Internal Combustion Engine (CHP): $0.44/W
Microturbine (CHP): $0.44/W
Gas Turbine (CHP): $0.44/W
Advanced Energy Storage: $1.46/W
Biogas: $1.46/W
Fuel Cell (CHP or Electric Only): $1.65/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.
Maximum Incentive:$5 million, or 60% of eligible project costs, whichever is less.
Incentive payment is capped at 3 MW.
Eligible System Size:Systems must be sized according to customer's electricity demand; wind turbine projects may be sized up to 200% of the previous 12 month annual peak demand
Equipment Requirements:Systems must be new, and in compliance with all applicable performance and safety standards. Wind systems, fuel cells and advanced energy storage systems must be covered by a minimum ten year warranty. The warranty must protect against the breakdown or degradation in electrical output of more than ten percent from the originally rated electrical output. The warranty should cover all replacement and labor costs.
Installation Requirements:Installation must comply with all federal, state, and local codes; Must be grid-connected and installed by a California-licensed contractor.
Ownership of Renewable Energy Credits:Remains with customer/producer
Program Budget:2015 Funding Levels:
PG&E: $33.5 million;
SCE: $26 million;
So Cal Gas: $7.4 million;
SDG&E: $10.2 million
Start Date:2001
Expiration Date:01/01/2021
Web Site:
Authority 1:
Cal Pub Util Code ยง 379.6
Authority 2:
Date Enacted:
Date Effective:
SB 412
Authority 3:
Self-Generation Incentive Program Handbook (2015)

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 2015, the incentive payments range from $0.44/W - $1.65/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 - $1.07/W
  • Waste Heat to Power - $1.07/W
  • Pressure Reduction Turbine - $1.07/W

Nonrenewable Conventional CHP:

  • Internal Combustion Engine (CHP) - $0.44/W
  • Microturbine (CHP) - $0.44/W
  • Gas Turbine (CHP) - $0.44/W

Emerging Technologies

  • Advanced Energy Storage - $1.46/W
  • Biogas - $1.46/W
  • Fuel Cell - CHP or Electric Only - $1.65/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 $1.90/W.

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)
Phone: 415-973-6436
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)
Phone: 1-866-584-7436
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)
Phone: 1-866-347-3228
Fax: (213) 244-8222
Address: Self-Generation Incentive Program Administrator
Southern California Gas Company
555 West Fifth Street, GT22H4
Los Angeles, CA 90013-1011

  James Loewen
California Public Utilities Commission
Los Angeles Office
320 West 4th Street, Ste. 500
Los Angeles, CA 90013
Phone: (213) 620-6341
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2014 - 2015 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.