SGIP—Frequently Asked Questions

Incentive Information

What is the average $/watt of a project?
The $/watt for every project varies with technology, system size, and system configuration. Updated statistics for each technology and to specific projects that have been completed or are in progress are listed on the Available Funding and Program Statistics page.

How do I qualify for the higher incentive rate as a Renewable Fuel Cell?
Customers must demonstrate that 75% of a project’s fuel source comes from a non-fossil fuel other than those defied as conventional in Section 2805 of the Public Utilities code that can be categorized as one of the following: wind, gas from biogas, digester gas, and landfill gas. The Renewable Fuel Project may not use more than 25 percent fossil fuel annually. In addition, application documentation must be submitted to demonstrate availability.

How do other incentives, grants, or donations affect my incentives for this project?
Customers are encouraged to pursue all available financial sources to make their project a reality. Different types of funding sources may affect the incentive paid out on a given project depending on the funding source (See Section 3.3.2 in the current SGIP Handbook).

How will the Self-Generation Incentive Program’s rebates be paid?
Upon final approval of the incentive claim form documentation and completed field verification visit, PG&E will issue the incentive in the form of a check in approximately 30 days.

Are SGIP incentives taxable?
Regrettably, PG&E does not provide tax advice to customers. Please consult your tax advisor for more information.

Program Information and Eligibility

Who administers the Self-Generation Incentive Program?
Pacific Gas and Electric Company (PG&E), Southern California Edison (SCE), the Southern California Gas Company (SoCal Gas), and the California Center for Sustainable Energy (CCSE*) administer this program throughout their respective service territories.

*CCSE is the Program Administer for SDG&E customers.

Is there a limit to the number of systems I may install under the Self-Generation Incentive Program?
Yes. A customer may receive payment up to a maximum of 3 MW of installed self-generation per Site, but may install up to 5 MW per Site.

I’m a customer who takes gas service from PG&E, but my electric provider is a municipality. Am I eligible to qualify for this program?
Yes. A customer who takes gas retail level service from PG&E at the facility, but electric service from a municipality may participate in the Self-Generation Incentive Program, subject to certain restrictions.

I am currently participating in an interruptible program. Am I still eligible for the Self-Generation Incentive Program if I choose to install on-site generation?
Yes, as long as the portion of load that is committed to such a program (an interruptible program, curtailable rate schedule, or any other state-agency sponsored interruptible, curtailable, or demand responsiveness program) is not displaced by self-generation receiving incentives through SGIP.

Am I eligible for the Self Generation Incentive program if I also plan on selling energy to PG&E?
No, unfortunately, per the SGIP Program Handbook, projects that participate in wholesale or retail sales of generated electricity or gas are not eligible for the program.

Are government agency's facilities eligible under the Self-Generation Incentive Program?
Government agencies that are distribution customers of Pacific Gas and Electric Company are eligible, with the same restrictions and limitations on the size of systems and payments per year as other customers.

Application Information

How do I apply and what are the steps I need to take?
Interested customers are encouraged to visit PG&E’s SGIP website to view and download copies of the current program handbook, application process overview, and program application forms. Please review these materials carefully for both customer eligibility and technology eligibility requirements to ensure a successful application.

Is there an application fee for this program?
Application fees will only be required for uncertified new technologies that are in the process of being certified by a nationally recognized testing laboratory. For these systems that require an application fee, it will be 1% of the requested incentive amount and must be paid before a reservation is issued.

If I interconnected my system before receiving a reservation, will I qualify for incentives?
Projects are eligible for incentives if the Host Customer or System Owner has not yet received authorization from the serving Electric Utility to operate the Project in parallel with the grid or if the system was authorized for interconnection within the 12-months prior to the submittal of the reservation application.

May I change Applicants at any time?
Yes. The Host Customer is the incentive reservation holder and has the right to designate the Applicant, energy services provider, and/or system installer as long as the Host Customer submits a new Reservation Request Form at the same time written notification of withdrawal from the Project is provided to the Program Administrator.

May I apply for a SGIP reservation online?
Unfortunately, we do not accept SGIP online applications at this time. All applications must be mailed for submittal.

Advanced Energy Storage

What is Advanced Energy Storage (AES)?
Advanced Energy Storage systems are technologies that convert electricity into another form of stored energy and then converted back to electricity at another time. Beginning in 2009, AES systems are eligible for SGIP incentives and must be coupled with an eligible self generation technology, currently fuel cells and wind turbines, and be able to discharge at rated capacity for a for hour period. Note that Advanced Energy Storage systems utilizing hydrogen as the storage medium are not eligible at this time.

Advanced Energy Storage systems coupled with fuel cells must meet the site specific requirements for on-site peak demand reduction and be capable of discharging fully at least once per day in order to be eligible for the $2/watt incentive. (Section 2.5.1.1)
Metering requirements have been added for Advanced Energy Storage systems coupled with fuel cells and wind turbines (Section 5.0).

How do AES incentives calculate with a wind and/or fuel cell?
AES incentives are calculated separately from a wind or fuel cell incentive. AES systems less than 1 MW are provided with a $2.00/watt incentive, and then prorated at $1.00/watt from 1 MW- 2 MW and $0.50/watt from 2 MW - 3 MW. The total AES system incentive is then added with the wind and/or fuel cell incentive for a total incentive amount.

I already have an existing wind or fuel cell that received incentives through SGIP, do I qualify for AES?
Yes, existing wind or fuel cells installed can be coupled with an AES system. Advanced Energy Storage Projects must be sized no larger than the rated capacity (kW) of the SGIP eligible technology it is operating in concert with.

Does a stand alone AES system qualify?
No. Unfortunately, per program guidelines, AES must be coupled with a currently eligible SGIP technology, wind or fuel cells.

Selecting an Installer

Where do I go to get help with making system equipment specification and buying decisions?
Pacific Gas and Electric Company does not recommend nor endorse any particular equipment nor installers. There are, however, outside consultants and contractors available to assist customers evaluate whether or not on-site generation is right for them.

Interconnection & Metering

When should I submit my interconnection application?
Applicants are encouraged to submit their interconnection application as soon as they receive their Conditional Reservation Notice from their Program Administrator. Please note that the project must be interconnected to the PG&E grid and the customer must receive a “Permission to Operate” Letter, prior to payment approval.

Am I eligible to participate in the Net Energy Metering (NEM) Program as well as the Self Generation Incentive Program?
Yes, PG&E offers Net Energy Metering for wind and fuel cell technologies. Please visit: http://www.pge.com/b2b/newgenerator/netenergymetering/index.shtml for additional information on how to apply for NEM.

Do I have any obligations after the self-generation equipment installation and incentive payment?
The customer must agree to allow PG&E, or its contractors, to have access to the self-generation system so they may gather CPUC-mandated measurement and verification data.

In addition, it is a requirement that the generating system is operating for a minimum of twice the applicable warranty period of the technology.

Classes

Are there currently classes offered on the Self Generation Incentive Program?
Yes, PG&E host webinars throughout the year. Please visit the solar education website for future classes or previous presentation webinars.

What’s New

How do I get information or updates from the Self-Generation Incentive Program?
Applicants and customers may visit the SGIP website at any time to get program updates and information.