• The CPUC's Self-Generation Incentive Program (SGIP)147 provides incentives to support existing, new, and emerging distributed energy resources (DERs). DERs—which are defined as distribution-connected distributed generation resources, energy efficiency, energy storage, electric vehicles, and demand response technologies—play an important role in identifying optional portfolios of resources under the State’s integrated resource plan (IRP), as specified in Public Utilities Code §454.51 and §454.52. For the SGIP program, all sectors are eligible. Most of the rebates are issued to customers in the residential sector that have advanced storage system (e.g., electrochemical storage) as an eligible DER.

147 There are three incentive level designations that provide rebates for qualifying distributed energy systems installed on the customer’s side of the utility meter. Qualifying technologies include wind turbines, waste heat to power technologies, pressure reduction turbines, internal combustion engines, microturbines, gas turbines, fuel cells, and advanced energy storage systems. Level 1 designation expired in 2006; only Levels 2 and 3 are active.

  • In addition to rated capacity, Distributed Energy Resources (DERs) that use electrochemical storage, mechanical storage, or thermal storage technologies also have energy storage capacities. In 2021, California added 77.4 MWh of energy storage capacity across all sectors, with the government sector adding 46.7 percent of the energy storage capacity. Due to the low statewide participation, CUPC increased the incentive in 2020 and saw a wave of applications. Note that most of the projects that would fall in the educational and nonprofit category are part of the “equity” bucket of incentives, and the budget for equity projects has been fully exhausted.148 As a result, the capacity added in 2021 represents a 33.5 percent decrease compared to the capacity added in 2018 (116.4 MWh).

148 “Participating in Self-Generation Incentive Program (SGIP).” California Public Utilities Commission. Available at: