The Self-Generation Incentive Program (SGIP) supports reductions of greenhouse gas emissions and on-site electric demand in California by funding installations of qualifying distributed energy technologies designed to meet all or a portion of a customer’s electrical needs.
Energy storage systems are incentivized based on the watt-hour AC (Wh-AC) of the system.
Energy Storage
General Market Budget
Within General Market budgets, the Large-Scale Storage budget provides incentives for installing all nonresidential qualifying energy storage technologies and residential systems with sizes greater than 10 kW. The Small Residential budget applies to system sizes less than or equal to 10 kW.
An incentive step is defined by the amount of funding assigned to a specific incentive rate. As the funding in a step is reached, a new step, with a lower incentive rate will open as funds are available. Incentive rates change as incentive steps close and new steps open. Incentive rates for the active step and previous steps are displayed in the table below.
Nonresidential customers with critical resiliency needs that provide critical facilities or infrastructure may be eligible for a resiliency adder that increases the incentive rate by $0.15/Wh.
The incentive for large-scale storage projects claiming the incentive tax credit (ITC) will maintain a 72% differential from the incentive rate for non-ITC large-scale storage projects in all steps for equipment purchased before December 31, 2021.
General Market Energy Storage Incentives per Watt-hour (Wh) & Resiliency Adder
| Incentive Rate $/Wh | ||||||||
|---|---|---|---|---|---|---|---|---|
| Budget Categories | Step 1 | Step 2 | Step 3 | Step 4 | Step 5 | Step 6 | Step 7 | Resiliency Adder |
| Large-Scale Storage | $0.50 | $0.40 | $0.35 | $0.30 | $0.25 | N/A | N/A | $0.15 |
| Large-Scale Storage Claiming ITC and equipment purchased before 12/31/2021. | $0.36 | $0.29 | $0.25 | $0.22 | $0.18 | N/A | N/A | $0.15 |
| Small Residential Storage | $0.50 | $0.40 | $0.35 | $0.30 | $0.25 | $0.20 | $0.15 | N/A |
| Budget Categories | Incentive Step | Incentive Rates $/Wh |
|---|---|---|
| Large Storage | Step 1 | $0.50 |
| Step 2 | $0.40 | |
| Step 3 | $0.35 | |
| Step 4 | $0.30 | |
| Step 5 | $0.25 | |
| Step 6 | N/A | |
| Step 7 | N/A | |
| Resiliency Adder | $0.15 | |
| Large Storage | Step 1 | $0.36 |
| Step 2 | $0.29 | |
| Step 3 | $0.25 | |
| Step 4 | $0.22 | |
| Step 5 | $0.18 | |
| Step 6 | N/A | |
| Step 7 | N/A | |
| Resiliency Adder | $0.15 | |
| Large Storage | Step 1 | $0.50 |
| Step 2 | $0.40 | |
| Step 3 | $0.35 | |
| Step 4 | $0.30 | |
| Step 5 | $0.25 | |
| Step 6 | $0.20 | |
| Step 7 | $0.15 | |
| Resiliency Adder | N/A |
Equity and Equity Resiliency Budgets
The Equity budget provides incentives for installing qualifying energy storage technologies for vulnerable residential and nonresidential investor-owned utility ratepayers. You may be eligible if you are in or serve a low-income or disadvantaged community.
The Equity Resiliency budget provides incentives for installing qualifying energy storage technologies for vulnerable residential and nonresidential customers with critical resiliency needs. You may be eligible if you are in a High Fire-Threat District (HFTD) or have been affected by two or more Public Safety Power Shutoff (PSPS) or wildfire events.
Equity and Equity Resiliency Energy Storage Incentives per Watt-hour (Wh)
| Budget Categories | Incentive Rate $/Wh |
|---|---|
| Equity | $0.85 |
| Equity Resiliency | $1.00 |
Incentive Duration Decrease
Energy storage incentives are reduced as the duration of energy storage (Wh) increases. Projects may qualify for a reduced incentive duration decrease for opting into resiliency operational capabilities. All Equity Resiliency budget projects will claim resiliency capabilities. The incentive duration decrease percentages for projects claiming resiliency capabilities vs. projects not claiming resiliency capabilities are shown in the following table.
Incentive Duration Decrease Percentages
| Percentage of Incentive Rate | ||
|---|---|---|
| Discharge duration (hours) | Projects Claiming Resiliency Capabilities | Projects Not Claiming Resiliency Capabilities |
| 0-2 hours | 100% | 100% |
| 2-4 hours | 100% | 50% |
| 4-6 hours | 50% | 25% |
| Greater than 6 hours | 0% | 0% |
Incentive Declines and Caps Based on Energy Storage Capacity
Energy storage incentives are paid up to 6 MWh of capacity with tiered incentive rates. For energy storage projects that are greater than 2 MWh, incentives decline according to the following schedule.
Tiered Rate Schedule for Projects Based on Capacity
| Energy Capacity (MWh) | Percentage of Incentive Rate |
|---|---|
| 0-2 MWh | 100% |
| 2-4 MWh | 50% |
| 4-6 MWh | 25% |
Generation
Renewable Generation Budget
The Renewable Generation budget provides incentives for installing qualifying renewable generation technologies for residential and nonresidential investor-owned utility ratepayers. Renewable generation projects have a standardized base incentive rate of $2.00/W.
Customers with critical resiliency needs may be eligible for a renewable generation resiliency adder for a $2.50/W increase for a total of $4.50/W.
Renewable Generation Resiliency Adder
| Technology Type | Incentive Rate | Resiliency Adder |
|---|---|---|
| Renewable Generation Technologies | $2.00/W | $2.50/W |
Incentive Declines Based on Generation Capacity
Renewable generation projects are incentivized for up to 3 MW of capacity with tiered incentive rates. For projects that are greater than 1 MW, the incentives decline according to the following schedule.
Tiered Rate Schedule for Renewable Generation Based on Capacity
| Energy Capacity (MWh) | Percentage of Incentive Rate |
|---|---|
| 0-1 MWh | 100% |
| 1 MWh-2 MWh | 75% |
| 2 MWh-3 MWh | 50% |
Quicklinks
Program Handbook
Information on incentive step closures and openings and how to size your system to determine the appropriate watt-hour (Wh) or watt (W).