Time Running Out on Storage Incentives as SGIP Is Set to Step Down in California


California’s Self-Generation Incentive Program, commonly known as SGIP, moves into its fourth and final program step in the PG&E utility territory, marking the beginning of the end for rebates on large-scale solar-plus-storage projects in the state. But don’t worry, there’s still time to get in on the savings. Read ahead to find out how.

What Is SGIP?

For those unfamiliar with the program, SGIP offers financial incentives to residential and commercial utility customers who install energy storage on their property, which includes storage installations as part of solar photovoltaic (PV) systems. Among other benefits, supplementing a solar array with storage allows a customer to reserve energy for use in the evening, when utilities tend to charge more for electricity due to higher demand. Beneficiaries of the SGIP program are entitled to a per-watt-hour (Wh) rebate that can amount to a significant portion of their energy storage system’s total cost. In order to qualify for SGIP, customers must be located within the Southern California Edison (SCE), Southern California Gas Company (SoCalGas), San Diego Gas & Electric (SDG&E), or Pacific Gas and Electric Company (PG&E) utility territories.

How Is SGIP Changing?

SGIP incentives are divided into several budget categories across each of the four participating utility territories. Corporations that are considering installing a solar energy system with storage will want to take note of the changes set to take place within the Large-Scale Storage budget category for PG&E customers. The rebate for solar-plus-storage systems will decrease to $0.22/Wh on March 29 as the incentive transitions from Step 3 to Step 4, the final phase of the SGIP program for Large-Scale Storage projects in the PG&E territory. (The incentive level in the other three participating utility territories, which are all still in Step 3, stands at $0.25/Wh for large-scale solar-plus-storage.) Once the allocated $22.6 million worth of incentives are distributed for PG&E — which could take less than a year — there will no longer be a rebate for most commercial storage projects (though some projects, like those located within economically disadvantaged areas, could still be eligible).

How Can Corporations Still Leverage SGIP?

There’s still time to take advantage of SGIP storage incentives, but not much. Working with an experienced developer such as PowerFlex can take the guesswork out of the process. Our experienced solar professionals can help determine if your corporation qualifies for the program, handle the application, and explore what other incentives you might be eligible for on the federal, state, and local utility levels. And of course, we’ll design, install, and execute a solar-plus-storage system that’s bespoke to your business needs.

Ready to start? Our solar professionals have decades of combined experience in all facets of solar energy production and storage. It’s why top companies — especially those with facilities in California such as Amazon, Sysco, and Facebook — have trusted us to implement solar systems that deliver on their financial goals, energy needs, and sustainability targets. Contact us for a free consultation and see what solar can do for you.