The Self-Generation Incentive Program (SGIP) in California is an excellent opportunity for property owners looking to pair a solar battery with their solar panel system. The program offers rebates for installing home solar batteries, making it a cost-effective option for enhancing your solar setup.
Rebates range from $150 to $200 per kWh of installed storage capacity, varying by location (residential). On average, a typical solar battery can earn a rebate of $1,500 to $2,000. Additionally, solar batteries qualify for the federal solar tax credit, making battery installations in California more affordable than ever.
Key takeaways
- California’s Self-Generation Incentive Program (SGIP) offers a tiered rebate structure for battery storage projects based on the battery’s capacity.
- It’s advantageous to apply for SGIP sooner rather than later, as the incentive rate decreases with increased battery installations.
- A 10 kWh home solar battery installation can qualify for a rebate of $1,500.
- Typically, your battery system installer will handle the SGIP application process for you.
- Expanding the SGIP budget is expected to boost solar battery installations and create more clean energy jobs in California.
What is SGIP?
SGIP is an incentive program administered by the California Public Utilities Commission (CPUC).
Approximately 80% of the program’s budget is allocated to energy storage systems, thanks to Senate Bill 700 passed in 2018. SGIP provides upfront rebates based on the storage capacity of the installed battery.
The rebate amount decreases as more batteries are installed, due to SGIP’s tiered rate structure. Your incentive rate is influenced not only by when you apply but also by the type of project. For example, large-scale battery installations at industrial sites receive different incentives compared to residential installations.
The remaining 20% of the SGIP budget is dedicated to other “behind-the-meter” distributed generation technologies, such as wind turbines, waste-to-heat power, fuel cells, and pressure-reduction turbines that help reduce greenhouse gas emissions in the state.
What’s new with the SGIP rebate?
In January 2020, the CPUC approved additional funding for SGIP, extending the program until 2024 with an additional $675 million, bringing the total available incentives to over $1 billion.
A significant portion of this funding was allocated to the new Equity Resiliency Budget, created in response to increased wildfires and Public Safety Power Shutoffs (PSPS) in California.
To qualify for the Equity Resiliency Budget, a customer must:
- Be a low-income customer
- Live in a Tier 3 or Tier 4 fire risk area
- Reside in an area that has experienced two or more PSPS events
- Be a critical facility serving a disadvantaged community, high fire risk area, or PSPS-affected area
Energy storage projects meeting these criteria can receive a substantial SGIP incentive of $1,000 per kWh of installed battery storage. This increased rebate rate is designed to enhance access to battery storage for the most vulnerable customers by covering nearly the entire installation cost.
The new budget also allocated approximately $60 million to regular residential projects. This expansion has moved the SGIP residential program into Step 6, offering an incentive of $200 per kWh of installed solar battery storage.
What are the current SGIP incentive rates?
To qualify for the Self-Generation Incentive Program (SGIP), applicants must be commercial, industrial, agricultural, or residential customers of Pacific Gas & Electric (PG&E), SoCalGas, Southern California Edison (SCE), or San Diego Gas & Electric (SDG&E).
Other California residents can apply through the Center for Sustainable Energy (CSE). PG&E, SCE, SoCalGas, SDG&E, and CSE are all SGIP Program Administrators responsible for distributing incentives to applicants.
The SGIP rebate for battery storage is categorized into five project types, each with its own incentive rate. Here’s an overview of the available incentive rates for each project type, organized by Program Administrator.
- Center for Sustainable Energy (CSE)
| Project type | Current step | Incentive rate |
| Large-scale storage (>10 kW) | Step 4 | $300/kWh |
| Large-scale storage (>10 kW) with tax credit | Step 4 | $220/kWh |
|
Residential storage (≤10 kW) |
Step 7 | $150/kWh |
|
Residential equity storage (≤10 kW) |
Step 5 | $850/kWh |
| Residential equity resiliency storage (≤10 kW) | Step 5 | $1,000/kWh |
- Southern California Edison (SCE)
|
Project type |
Current step | Incentive rate |
| Large-scale storage (>10 kW) | Step 5 | $250/kWh |
|
Large-scale storage (>10 kW) with tax credit |
Step 5 | $180/kWh |
|
Residential storage (≤10 kW) |
Step 7 | $150/kWh |
| Residential equity storage (≤10 kW) | Step 5 | $850/kWh |
| Residential equity resiliency storage (≤10 kW) | Step 5 | $1,000/kWh |
- SoCal Gas
| Project type | Current step | Incentive rate |
| Large-scale storage (>10 kW) | Step 5 | $250/kWh |
|
Large-scale storage (>10 kW) with tax credit |
Step 5 | $180/kWh |
|
Residential storage (≤10 kW) |
Step 6 | $200/kWh |
| Residential equity storage (≤10 kW) | Step 5 | $850/kWh |
| Residential equity resiliency storage (≤10 kW) | Step 5 | $1,000/kWh |
- Pacific Gas and Electric (PG&E)
|
Project type |
Current step | Incentive rate |
|
Large-scale storage (>10 kW) |
Step 5 | $250/kWh |
| Large-scale storage (>10 kW) with ITC | Step 5 | $180/kWh |
| Residential storage (≤10 kW) | Step 7 | $150/kWh |
| Residential equity storage (≤10 kW) | Step 5 | $850/kWh |
| Residential equity resiliency storage (≤10 kW) | Step 5 | $1,000/kWh |
How much can you save on a battery storage system with SGIP?
Deciding to install a battery storage system in your home can be a significant investment, but the Self-Generation Incentive Program (SGIP) can help offset the upfront costs.
For example, Southern California Edison (SCE) offers a rebate of $150 per kilowatt-hour (kWh) of energy storage installed. This means a 10 kWh solar battery would qualify for a $1,500 rebate!
When you factor in the 30% federal tax credit for battery storage, the overall installation cost becomes even more affordable.
Find out how much you can save with solar-plus-battery storage for your specific home.
How to apply for the SGIP rebate
Applying for the SGIP rebate is easy! Typically, EnFin will handle all the paperwork for you, so you won’t have to worry about the application process.
What is the future of SGIP?
SGIP has already driven significant growth in California’s solar battery industry. The additional funding for the residential budget alone could support around 30,000 battery installation projects—an impressive number of batteries.
With increased funding, more frequent power outages, and more time spent at home due to the pandemic, we can anticipate a rise in battery installations across California. This not only moves the state closer to a renewable energy future but could also boost job opportunities in energy storage.
The success of the SGIP program may inspire other states to develop similar solar and storage incentive programs. To explore available incentives and rebates in your area, check out our solar savings calculator below.