California’s SGIP Battery Rebate in 2023: What You Should Know

19 Jul 2023

The Self-Generation Incentive Program (SGIP) in California stands as one of the most advantageous incentives for homeowners seeking to combine a solar battery with their solar panel system. With California already at the forefront of the solar industry, SGIP is set to elevate the state’s position as a leader in battery storage as well.

Thanks to the SGIP battery rebate, the costs of solar batteries are reduced by one-third, enabling California homeowners to gain affordable access to dependable, environmentally friendly energy solutions. This program empowers households across the state to harness the benefits of reliable and clean power.

What is SGIP: Understanding the Self-Generation Incentive Program in California

Administered by the California Public Utilities Commission (CPUC), SGIP, is an incentive program that offers individuals an upfront rebate calculated according to the storage capacity of the installed battery.

Applying for SGIP earlier translates to receiving a higher rebate amount. The program operates on a tiered rate structure, meaning that as more batteries are installed, the incentive amount gradually decreases.

The incentive rate you receive from SGIP is influenced not only by the timing of your application but also by the nature of your project. For instance, a large-scale battery installation at a factory will be eligible for a different incentive amount compared to a small battery installed in a residential home.

The Equity Resiliency Budget, a section of SGIP, was established in direct response to the rise in wildfires and Public Safety Power Shutoffs (PSPS), also known as planned power outages, across California.

To gear up for upcoming wildfire seasons, the CPUC approved funding of over $1 billion for SGIP, covering the period through 2024.

To be eligible for the equity resiliency budget, customers must meet the following criteria:

· Qualify as a low-income customer. · Reside in a Tier 3 or Tier 4 fire risk area.

· Live in an area that has encountered two or more PSPS events.

· Operate as a critical facility serving a disadvantaged community, high fire risk area, or PSPS-affected area.

To meet the eligibility requirements of SGIP, prospective applicants need to be customers of either Pacific Gas & Electric (PG&E), SoCalGas, Southern California Edison (SCE), or San Diego Gas & Electric (SDG&E). This includes commercial, industrial, agricultural, or residential customers.

Unlock Big Savings on Battery Storage Systems with SGIP: Discover How Much You Can Save

SGIP offers a valuable solution to alleviate the impact of upfront installation expenses associated with battery installation.

As an illustration, Southern California Edison (SCE) provides a $150 rebate per kilowatt hour (kWh) of energy storage for residential customers. This implies that a 10-kWh solar battery would qualify for a $1,500 rebate!

Moreover, the overall installation cost can be further reduced by factoring in the 30% federal tax credit available for battery storage.

How to Apply for the SGIP Rebate

Pacific Gas & Electric

San Diego Gas & Electric

Southern California Edison

Southern California Gas www.socalgas.comfor-your-business/power-generation/self-generation-incentive

Key Takeaways

The tiered rate structure of the Self-Generation Incentive Program provides rebates across the state for battery storage projects based on the installed battery capacity.

A residential solar battery installation with a capacity of 10 kWh can be eligible for a rebate of $1,500, and the overall installation cost can be further reduced by factoring in the 30% federal tax credit available for battery storage.

The application process is straightforward and involves only 2 or 3 steps, depending on whether the size of your system is less than 10 kWh or greater than 10 kWh.

To maximize the benefits, it is recommended to submit your application for SGIP sooner rather than later, as the incentive rate diminishes with the increasing number of battery installations.

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