The Self-Generation Incentive Program (SGIP) in California
SGIP is designed to encourage homeowners to adopt residential energy storage systems by offering financial incentives that reduce the upfront costs. Here’s how it works for residential energy storage systems:
Overview of SGIP
- Objective: SGIP aims to promote renewable energy adoption, particularly through energy storage, to increase energy resilience in California.
- Program Administrators: PG&E, SCE, SDG&E, and SoCalGas administer SGIP, with additional coordination through the Center for Sustainable Energy (CSE) for other California residents.
Eligibility and Incentive Categories
SGIP provides incentives through three main categories:
- Equity Resiliency Budget: Offers $1,000/kWh for projects in high-risk fire areas, low-income households, or critical facilities serving disadvantaged communities. This incentive covers nearly 100% of the storage system cost.
- Equity Budget: Provides $850/kWh for disadvantaged communities or low-income housing. This incentive covers up to 85% of the storage system cost.
- General Market Budget: Offers approximately $150-200/kWh for residential customers and covers around 15-20% of the storage system cost.
Incentive Calculations and Payouts
- Incentive Calculation: The rebate amount depends on when you apply, as SGIP uses a tiered rate structure that decreases as more batteries are installed.
- Payout Process: Residential customers receive the rebate upfront after project completion and site verification, though this process can take up to a year.
Key Requirements
- Minimum Discharge Requirement: Residential systems must discharge a minimum of 52 full-discharges per year.
- Efficiency Requirement: Energy storage systems must have a single-cycle round-trip efficiency greater than 85% to be eligible.
- Tariff Enrollment: Participation in a time-varying rate plan is required if available, with a peak period starting at 4 PM or later and a summer peak to off-peak price differential of at least 1.69.
Benefits and Future Directions
- Benefits: SGIP encourages energy resilience by promoting battery storage, particularly in areas vulnerable to power outages and wildfires.
- Future Directions: The program is continuously evolving to ensure more equitable access to incentives for residential and low-income customers.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-does-the-self-generation-incentive-program-sgip-in-california-work-for-residential-energy-storage-systems/
