The California Self Generation Incentive Program (SGIP) is a ratepayer-funded rebate program overseen by the California Public Utilities Commission (CPUC) and available to retail electric and gas customers of the major California investor-owned utilities (PG&E, SCE, LADWP, & SDGE). The program is expected to reopen in May 2017 with a number of significant changes:
- Significant increase in available funds for both commercial and residential energy storage
- Changes funding allocation so that 85% (previously 75%) of the new funding is reserved for energy storage projects
- Allows 15% of SGIP funding to be reserved for projects 10 kW and below
- Allocates new funds in five steps. These steps provide funding for SGIP projects based on a specified, decreasing incentive amount. Step one has the highest rebate per watt-hour, and declines over the Steps until funds are exhausted under step five.
This matters to residential solar installers because with 85% of incentives reserved for energy storage projects, residential systems that are 10 kW or smaller will likely be set at around the 50 cent/Wh. Subsequent applications may decrease to 40-30 cents/hour.
For example, Adara Power Energy said if its its 10-kWh storage system is awarded a SGIP rebate on the first step (assuming 50 cent/watt-hour) it will be eligible for a $5,000 rebate off the total installed cost. A 20-kWh Adara Power system would be eligible for up to $10,000 rebate, significantly offsetting the total cost of an energy storage system. Further incentives may be available if a system qualifies for the ITC.
Residential and Commercial Energy Storage already makes economic sense when paired with solar for many California customers. New Time of Use rate policies are being implemented that will charge higher electricity rates during the evening hours after the solar PV has stopped producing. This will potentially impact all solar customers and require a home energy storage system to power the home during these peak rate periods.
Adara Power is assisting homeowers and installers with SGIP reservations, saying the this program is expected to exceed funding levels very quickly so it recommends California installers and homeowners have their applications ready to submit when the program opens. To find out more visit Adarapower.com.
News item from Adara Power