The Self-Generation Incentive Program (SGIP) offers financial incentives for distributed energy resource (DER) systems installed behind the customer meter in California. The California Public Utilities Commission (CPUC) opened SGIP in 2001, and after various iterations is now focused on energy storage. To date, the SGIP has contributed to 336 MW of energy storage in California. On September 27, 2018, California Governor Jerry Brown signed Senate Bill 700, which extends the administration of SGIP through 2025 and supplies an additional $830 million in incentives. With the federal investment tax credit (ITC) set to decline from 2020, those interested in energy storage and other DER projects in California would be wise to familiarize themselves with SGIP.
GI Energy has published this briefing as a general SGIP primer. For an in-depth assessment of SGIP potential for particular storage or DER projects in California, GI Energy encourages customers to reach out to us directly. Incentive agency outreach, scenario modelling, and financial sensitivity analysis are core competencies of our Analytics and Development groups. Optimizing the combination of SGIP, federal ITC, and other incentives can be the difference between go and no-go decisions for DER projects in California.