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Self-Generation Incentive Program

Date Last Updated4/24/2013
Incentive TypeRebate
State/FederalCA
Incentive Administrator/Contact OfficeCalifornia Public Utilities Commission
Incentive Initiation Date10/12/2003
Incentive Expiration Date1/1/2016
Incentive Size and Funding SourceThe Self-Generation Incentive Program (SGIP) offers incentives to customers who produce electricity with wind turbines, fuel cells, various forms of CHP and advanced energy storage. Systems less than 30 kW will receive their full incentive upfront. Systems with a capacity of 30 kW or greater will receive half the incentive upfront and the other half will be paid over the following 5 years based on the actual performance. For 2013, the incentive payments range from $0.48/W - $2.03/W for renewable energy systems depending on the type of system with a maximum incentive of $5 million or 60% of eligible project costs. The following technologies will receive the corresponding upfront incentive (or half of this figure if the system is 30 kW or larger):

Renewable and Waste Heat Capture:
  • Wind turbines: $1.19/W.
  • Waste Heat to Power: $1.19/W.
  • Pressure Reduction Turbine: $1.19/W.
Conventional CHP:
  • Internal Combustion Engine (CHP): $0.48/W.
  • Microturbine (CHP): $0.48/W.
  • Gas Turbine (CHP): $0.48/W.
Emerging Technologies:
  • Advanced Energy Storage: $1.80/W.
  • Biogas: $1.80/W.
  • Fuel Cell (CHP or Electric Only): $2.03/W.
The first MW in capacity will receive 100% of the calculated incentive, the second MW will receive 50% of the calculated incentive, and the third MW will receive 25% of the calculated amount.
Eligible RecipientRetail electric and gas customers of San Diego Gas & Electric (SDG&E), Pacific Gas & Electric (PG&E), Southern California Edison (SCE) or Southern California Gas (SoCal Gas) are eligible for SGIP, including commercial, industrial, residential, nonprofit, school, local government, state government, federal government and institutional customers.
Eligible FuelDoes Not Specify
Eligible Project Size (MW)Systems must be sized according to customer's electricity demand. There is no minimum or maximum eligible system size, although the incentive payment is capped at 3 MW.
Minimum Efficiency Required (%)Does Not Specify
Other Selected Eligibility CriteriaSystems must be new, and in compliance with all applicable performance and safety standards. Wind systems, fuel cells and advanced energy storage systems must be covered by a minimum 10 year warranty. The warranty must protect against the breakdown or degradation in electrical output of more than 10% from the originally rated electrical output. The warranty should cover all replacement and labor costs. Installation must comply with all federal, state and local codes. System must be grid-connected and installed by a California-licensed contractor. Systems must be sized according to customer's electricity demand. Systems must be new and in compliance with all applicable performance and safety standards.
UtilityPacific Gas & Electric (PG&E), Southern California Edison (SCE), Southern California Gas Company (SoCal Gas) and San Diego Gas & Electric (SDG&E).
Other Incentive DetailsApplicants must pay a minimum of 40% of eligible project costs (the biogas adder is not included in calculating the limit). Projects using the Federal Investment Tax Credit (ITC) must pay 40% of the eligible project costs after the ITC is subtracted from the project costs (i.e., the SGIP credit is limited to 30% of project costs).

Pacific Gas & Electric (PG&E), Southern California Edison (SCE) and Southern California Gas Company (SoCal Gas) administer the SGIP program in their service territories. The California Center for Sustainable Energy administers the program in San Diego Gas & Electric's (SDG&E) territory. Customers of PG&E, SDG&E, SCE and SoCal Gas should contact their program administrator for an application, program handbook and additional eligibility information. The program budget for 2013 was distributed as follows:
  • PG&E: $33.48 million.
  • SCE: $26.04 million.
  • So Cal Gas: $7.44 million.
  • SDG&E: $10.23 million.
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