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

 

The Self-Generation Incentive Program is an incentive program that was designed to encourage customers of PG&E, SCE, SDG&E, SoCalGas, and LADWP to install technologies that reduce their demand on the grid, which will reduce California’s greenhouse gas emissions and meet reduction targets.

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.

As a customer of these utilities, you can currently receive $.35/Wh for installing a qualifying technology. For example, if you install a battery storage project with 275kWh of capacity, you can receive approximately $96,000 to help with the costs of that project. If you pair this technology with a renewable energy project, the rate drops to $.25/Wh, but you are then eligible for the 26% federal tax credit as well! In this scenario, an estimate for this project could yield approximately $69,000 from the SGIP program and $50,000 in tax incentives.

Additionally, installing battery storage can help you reduce your peak demand, lowering your energy bill, and in the event of a power shutdown, your company could operate without disruption.

Pre-approval is required to reserve the funds for your project, and you have 12 months to complete the project after receiving approval.

U.S. Energy Recovery is an approved Project Developer in the SGIP program, and we’d be happy to help you plan and install your next energy storage project. Call our Incentives Specialist, Kim Flebotte, if you have any questions: (480) 825-3405.

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Published February 18, 2020 by Vanessa Peng