Discover the Self-Generation Incentive Program for non-residential customers

For all new non-residential battery storage and generation projects, you will receive 50% of the full incentive, and the remaining 50% will be paid annually, over five years. The remaining 50% will be adjusted to factor in the performance of your system (capacity factor and actual energy produced/offset for generation equipment; actual energy discharged/offset for battery storage systems).

Please work with your battery storage provider and/or generation technology provider to discuss financing options.

You can receive increased base incentives if you use a California manufacturer.

CALIFORNIA MANUFACTURER INCENTIVE
Applies to both battery storage incentives and generation incentives

An additional incentive of 20% will be added to the base incentive for projects using equipment manufactured in California. At least 50% of the project’s capital equipment value must be manufactured by an approved California Manufacturer.

Your base incentive may decrease depending on the actual performance of your battery storage and/or generation system, the greenhouse gas (GHG) emissions associated with your battery storage system, the hours in duration your entire battery system is expected to last assuming max power output, the energy capacity (Wh) of your battery, and the power rating of your generation equipment. Additionally, if you are applying for General Market large-scale storage incentives, and you secured funding from the federal Investment Tax Credit (ITC), you will receive a decreased base incentive. Some of these rules are applicable to only battery storage, only generation, or both. Please see below to determine which rules will apply to you and consult the Handbook for additional guidance.

PERFORMANCE BASED INCENTIVE (PBI)
Applies to both battery storage incentives and generation incentives

For all new non-residential battery storage projects and for generation projects, you will receive 50% of the full incentive upon project completion and inspection, and the remaining 50% will be paid annually over five years. This annual payment over five years is called the performance-based incentive (PBI). The remaining 50% will be adjusted to factor in performance of your system (capacity factor and actual energy produced/offset for generation equipment; actual energy discharged/offset for battery storage systems).

GREENHOUSE GAS (GHG) PERFORMANCE
Applies to battery storage incentives, only

All new non-residential battery storage systems must reduce greenhouse gas (GHG) emissions by 5 kg CO2 per each rebated energy capacity (kWh) on an annual basis. Projects that do not reduce GHG by 5 kg CO2/kWh will have their annual performance-based incentive (PBI) payment reduced by $1/kg CO2 emitted above this level. The reduction of payment will never exceed the annual PBI payment. Exceptional circumstances that may exempt you from this reduction of payment, include, but are not limited to, causes not reasonably under the developer or customer’s control, and causes that were not reasonably foreseeable.

DURATION
Applies to battery storage incentives, only

Example:

Assume you are applying for non-residential General Market incentives of $0.40/Wh and you are not claiming the federal Investment Tax Credit. For a storage system with an energy capacity of 400 kWh and power rating of 100kW:

• The battery storage system has a 4-hour duration (400kWh/100kW = 4 hours)
• So for the first two hours, you will receive: 200,000 Wh * $0.40/Wh * 1 = $80,000
• And for the second two hours, you will receive: 200,000 Wh * $0.40/Wh * 0.50 = $40,000
• In total you will receive: $80,000 + $40,000 = $120,000

CAPACITY
Applies to both battery storage incentives and generation incentives

For battery storage projects, the base incentives may decline depending on the energy storage capacity (kWh or MWh) of your whole battery system. Please keep in mind that 1 MWh = 1000 kWh. The base incentives decline according to the following schedule:

For generation projects, the base incentives may decline depending on the power rating (kW or MW) of your whole on-site generation system. Please keep in mind that 1 MWh = 1000 kWh. The base-incentives decline according to the following schedule:

FEDERAL INVESTMENT TAX CREDIT (ITC)
Applies to battery storage incentives, only

Customers pairing their battery storage system with an on-site renewable generator can apply for the federal Investment Tax Credit (ITC) to receive additional financial help, as long as the battery storage system is charged at least 75% from renewables. Large-scale storage projects claiming the ITC can still receive SGIP incentives, but the base incentives will be 72% of the current step. Please see the below table for ITC-adjusted base incentive in each step. Please note: this applies to large-scale storage projects in the General Market only (this percentage decrease does not apply to customers with large-scale projects applying for “Equity Resiliency” or “Equity” incentives).