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What is the California SGIP Rebate and How Can it Benefit Your Business?

What is the California SGIP Rebate and How Can it Benefit Your Business?

By Vanessa Peng

The Self Generation Incentive Program (SGIP) is an incentive program that was designed to encourage customers of local utilities to install technologies that reduce their demand on the grid, which will reduce California’s greenhouse gas emissions and meet reduction targets.

The SGIP rebate program is provided by the California Public Utilities Commission Commercial (CPUC). 

Customers of Pacific Gas and Electric Company (PG&E), Southern California Edison (SCE), Southern California Gas Company (SoCalGas), and San Diego Gas & Electric (SDG&E) are included in the program.

The SGIP is one of the longest-running and most successful programs of its kind in the United States. The program was initially established as a response to the energy crisis of 2001 and focused on smaller demand response systems. Since 2001, the SGIP has been modified to include energy storage technologies and increased the size range of projects in an effort to reduce even more greenhouse gas emissions.

Qualifying technologies include advanced energy storage systems, fuel cells, and renewable generation projects that contain biogas or bio waste heat to power technologies, wind turbines, pressure reduction turbines, internal combustion engines, microturbines, and gas turbines.

In this article we will focus on the energy storage benefits of the SGIP rebate. 

How does the SGIP rebate work? What is the process to receiving your SGIP rebate?  

Pre-approval is required to reserve the funds for your project and you have twelve months to complete the project after receiving approval. You will receive the rebate after the SGIP application process is completed and your energy storage system is installed.

Applying for the SGIP rebate can be complicated and confusing, especially if you don’t have experience applying for energy efficiency rebates. Your best bet is to go with a commercial energy storage installer, like U.S. Energy Recovery, who can ensure you receive the battery storage system that fits your goals and the rebate application process is followed correctly.


How much can you get from SGIP?

The General Market SGIP incentive is about $350 per kilowatt hour, or a rebate that covers approximately 35 percent of the cost of the energy storage system.

For example, if you install a battery storage project with 275 kWh of capacity, you can receive approximately $96,000 to help with the costs of that project. If you pair this technology with  a solar photovoltaic (PV) array, the rate drops to $.25/Wh, but you are then eligible for the federal solar investment tax credit as well! In this scenario, an estimate for this project (if done in 2021-2022) could yield approximately $69,000 from the SGIP program and $50,000 in tax incentives.

SGIP also offers higher rebates for non-residential customers who are non-profit organizations, emergency response providers, small businesses located in disadvantaged or resiliency communities, among other specially identified institutions. These types of rebates require specific criteria to be met in order to be eligible.


How can the SGIP benefit your business?

The biggest benefit you’ll experience from the SGIP is the ability to install energy storage projects at your facility for a greatly reduced cost. In many cases, the SGIP rebate makes an energy storage system at a commercial facility a reality, instead of an item on an energy efficiency wish list. 

On top of the money you will save from the SGIP program, an energy storage system is one of the best ways to protect your facility from an unreliable grid and steep peak demand pricing.

Energy storage is a game-changing technology that can help your business save money and reduce its carbon footprint.

Energy storage systems are most commonly paired with solar energy. Solar is the most readily available resource for battery storage. Other resources include wind and pumped hydro, among other renewable sources. Having energy storage technology on your site allows you to save money on electricity, reduces your peak demand, lowers your dependence on the power grid, and in the event of a power outage with some additional equipment, your facility can continue to operate without disruptions. Read more about how energy storage systems can save your commercial operations here.

As an approved Project Developer in the SGIP program, we can get you the largest rebate available to you and get you the energy storage system that meets your goals and is tailored for your facility. Please connect with us (800) 834-8737 or call our Energy Strategy Manager, Kim Flebotte, if you have any questions: (480) 825-3405.

Applying for the SGIP can be complicated. Find out how we can help.