SGIP 2020 program updates: what you need to know

California’s Self Generation Incentive Program (SGIP) is one of the first incentives for battery energy storage in the country. The program has been very successful, helping California to lead the nation in residential energy storage deployment.

Recently, the program has received additional funding, with a slightly revised charter for how to use those funds. I’ll be detailing the adjustments to SGIP and how it will impact individual, residential solar + storage shoppers in California.

But before we get into please take a second and subscribe to our channel by clicking that red button down below. And if you’re someone in our area of Southern California and you’re interested in a solar + storage system, then get a quote from us by using the link in the description below. We are a registered developer for the SGIP and can process your application to help you get the state rebate.

SGIP in a nutchell provides incentive payments to customers in California that install energy storage systems. Specifically for residential consumers, SGIP provides an upfront rebate based on the amount of stored energy in the battery you install.

The incentive program is a tiered-block program, meaning that the level of incentives gradually decline over time as more batteries are installed in the state.

This certainly leads to a first-mover opportunity to receive the highest level of rebates by being the first to act; however, given that the cost of energy storage has declined significantly over the last five years, California customers can be certain that SGIP continues to provide a sizable rebate for installing energy storage.

For residential customers, SGIP is currently in Step 5, which provides a $250 per kilowatt-hour (kWh) of stored energy rebate. According to California’s distributed generation statistics portal, the two most popular batteries in the state at present are the Tesla Powerwall 2 and the LG Chem RESU 10H which we offer.

With usable energy capacities of 13.5 kWh and 10 kWh, respectively, Step 5 of SGIP would provide between a $2,500 and a $3,375 rebate for purchasing a new battery in California.

Funding levels have increased, because in 2018, California Senate Bill 700 authorized and directed the California Public Utilities Commission (CPUC) to extend and fund SGIP for an additional five years beyond its original expiration date of January 1, 2021.

Over the next two years, the CPUC deliberated the amount of funds to direct towards the re-invigorated SGIP, with a final decision coming during January 2020. Ultimately, the CPUC adopted a decision that approved the additional funding of SGIP by injecting a further $675 million into the program over the next five years.

Combining that with carryover funds from the previous round of funding for SGIP means that there are now over $1 billion in SGIP incentives available.

Adjustments to program budgets have occurred

Now, given the increased threat from wildfires in California and the increasing prevalence of Public Safety Power Shutoffs (PSPS) throughout the state, the CPUC’s decision on the delivery of additional funds under SGIP is geared towards providing batteries to those customers who are most at risk of blackouts and power shutoffs.

In fact, nearly 60% of the current $1 billion dollar program budget for SGIP is