Skip Navigation
HomeGlossaryLinksFAQsContactsAbout Us
California

California

Incentives/Policies for Renewable Energy

Printable Version
Self-Generation Incentive Program
Last DSIRE Review: 10/13/2009  
Incentive Type: State Rebate Program
State: California
Eligible Renewable/Other Technologies: Wind, Fuel Cells, Advanced Storage Technologies
Applicable Sectors: Commercial, Industrial, Residential, Nonprofit, Schools, Local Government, State Government, Fed. Government, Institutional
Incentive Amount:Wind: $1.50/W
Fuel cells: $2.50/W to $4.50/W, depending on fuel
Advanced Energy Storage systems coupled with eligible SGIP technologies: $2/W
An additional 20% will be awarded to projects that utilize systems manufactured in California
Maximum Incentive:Incentive payment is capped at 3 MW. 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, the last capacity increment above 2 MW up to 3 MW receives 25% of the incentive rate.
Eligible System Size:Systems must be sized according to customer's electricity demand; maximum system size of 5 MW; minimum of 30 kW for wind turbines and fuel cells using renewable fuels.
Equipment Requirements:Systems must be new, UL listed, 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 five 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.
Program Budget:2009 Funding:
PG&E: $36 million;
SCE: $28 million;
So Cal Gas: $11 million;
SDG&E: $8 million
Ownership of Renewable Energy Credits:Remains with customer/producer
Expiration Date1/1/2016
Web Site: http://www.cpuc.ca.gov/
PUC/energy/DistGen/sgip/index.htm
Authority 1: Cal Pub Util Code § 379.6
Authority 2: SB 412
Date Enacted:10/11/2009
Date Effective:1/1/2010
Authority 3: Self-Generation Incentive Program Handbook (2009)



Summary:
Initiated in 2001, the Self-Generation Incentive Program (SGIP) offers incentives to customers who produce electricity with wind turbines and fuel cells. The incentive payments range from $1/W - $4.50/W for renewable energy systems 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 SGIP. Originally set to expire at the end of 2011, SB 412 of 2009 amended the Public Utilities Code to allow incentives to be available through January 1, 2016. The SGIP, however, will not receive additional funding beyond December 31, 2011. Additionally, any program funding remaining after January 1, 2016 must be returned to the utilities to reduce ratepayer costs.  
 
Beginning January 1, 2007, the SGIP no longer provides rebates for solar photovoltaic (PV) installations. The incentive program for installing PV systems on non-residential buildings and existing homes is administered by the California Public Utilities Commission as part of the California Solar Initiative (CSI). Funding for integrating solar in new home construction is administered by the California Energy Commission. Click here for more information about CSI incentives.  
 
The following technologies and corresponding incentive amounts apply to the SGIP:  
 
Technologies using renewable fuels:
  • Wind turbines (minimum of 30 kW) - $1.50/W  
  • Fuel cells (minimum of 30 kW) - $4.50/W
  • Advanced Energy Storage coupled with an eligible SGIP technology and four hour discharge period at rated capacity: $2.00/W
Technologies using non-renewable fuels:
  • Fuel cells - $2.50/W
  • Advanced Energy Storage coupled with an eligible SGIP technology and four hour discharge period at rated capacity: $2.00/W
The maximum eligible system size is 5 MW, although the incentive payment is capped at 3 MW. (On April 24, 2008, the CPUC raised the cap on cash incentives for individual clean energy projects available through its SGIP from 1 MW to 3 MW, but systems greater than 1 MW receive reduced incentive rates.) Projects receiving incentives based on future performance of the system are not eligible to receive a SGIP rebate.  
 
For projects that receive other incentives funded by California investor-owned utility ratepayers, the SGIP incentive is discounted by the amount of the other incentive. For projects that receive other incentives funded by non-IOU (e.g., municipal utility) rate payers, the SGIP incentive is discounted by 50% of the other incentive. Projects that utilize systems manufactured in California are eligible for an additional incentive worth 20 percent of the base incentive.  
 
PG&E, SCE, and SoCal Gas administer the SGIP program in their service territories, and the San Diego Regional Energy Office 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)  
Web: http://www.pge.com/mybusiness/energysavingsrebates/selfgenerationincentive/index.shtml  
Phone: 415-973-6436  
Email: selfgen@pge.com  
Fax: (415) 973-2510  
Mailing Address: Self-Generation Incentive Program  
P.O. Box 770000  
Mail Code B27P  
San Francisco, CA 94177-001  
 
California Center for Sustainable Energy (CCSE)  
Web: http://energycenter.org/index.php/incentive-programs/self-generation-incentive-program  
Contact: Jon Bonk Vasko, Program Manager  
Phone: (858) 244-1196  
Phone 1-866-SDENERGY  
Fax: (858) 244-1178  
Email: selfgen@energycenter.org  
Address: California Center for Sustainable Energy  
Attn: SELFGEN Program Manager  
8690 Balboa Ave, Suite 100  
San Diego, CA 92123  
 
Southern California Edison (SCE)  
Web: http://www.sce.com/b-rs/sgip/self-generation-incentive-program.htm  
Phone: 1-866-584-7436  
Fax: (626) 633-3402  
Email: CSIGroup@sce.com  
Address: Program Manager Self-Generation Incentive Program  
Southern California Edison  
2131 Walnut Grove Avenue, 3rd Floor, B 10  
Rosemead, California 91770  
 
Southern California Gas Company (SoCalGas)  
Web: http://www.socalgas.com/business/selfgen  
Phone: 1-866-347-3228  
Email: selfgeneration@socalgas.com  
Fax: (213) 244-8222  
Address: Self-Generation Incentive Program Administrator  
Southern California Gas Company  
555 West Fifth Street, GT22H4  
Los Angeles, CA 90013-1011


 
Contact:
  Molly Sterkel
California Public Utilities Commission
505 Van Ness Avenue
San Francisco, CA 94102
Phone 2: (800) 649-7570
Fax: (415) 703-1158
E-Mail: mts@cpuc.ca.gov
NCSU - home
Please note: The information on the DSIRE web site provides an overview of incentives and other policies, but it should not be used as the only source of information when making purchasing decisions, investment decisions, tax decisions or other binding agreements. Please refer to the individual contact provided in each record to verify that a specific incentive or other policy is applicable to your specific project.

© 2009 N.C. Solar Center / N.C. State University / College of Engineering