Source: Center for Sustainable Energy. Based on SGIP applications with the status "Incentive Claim Form Pending Payment", "Payment PBI in Process", or "Payment Completed".
Data last updated on October 14, 2024.
Analysis by CEC Economics
Highlights
- The CPUC's Self-Generation Incentive Program (SGIP) provides incentives to support existing, new, and emerging distributed energy resources (DERs).80 DERs are defined as distribution-connected distributed generation resources, energy efficiency, energy storage, electric vehicles, and demand response technologies. These DERs, which are typically small generation units located on the customer’s side of the meter, 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.
- Since 2018, the residential sector had the most rebate-qualifying DERs, whereas previously, the commercial and government sectors had the most rebate-qualifying DERs. In 2023, 34.3 MW in rated capacity of qualifying DERs were rebated—defined as either pending payment, payment in process, or payment completed—down 38.4% from 2022 and is the lowest since 2009. Notably, single family residential has been a leading sector in terms of rebate-qualifying DERs since 2020, accounting for 9.4 MW of qualifying DERs in 2023. 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.81 As a result, 2023 was the first year where these sectors had no qualifying projects.
80 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.
81 Participating in Self-Generation Incentive Program (SGIP).” California Public Utilities Commission. Available at: https://www.cpuc.ca.gov/industries-and-topics/electrical-energy/demand-side-management/self-generation-incentive-program/participating-in-self-generation-incentive-program-sgip
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