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

Financial incentives for non-residential customers installing battery storage or generation equipment

Who is this program for?

The Self-Generation Incentive Program (SGIP) enables customers greater access to battery storage through a financial rebate. Currently, the rebate is 15-20% of the average battery cost. Any PG&E customer can apply for this program.

Benefits for battery storage

Customers can make their business more resilient during a power outage or a Public Safety Power Shutoff (PSPS) event.
Pairing your battery with solar can enable you to recharge during the day – as long there is sufficient sunshine – to further extend your business’ backup power. How long your system will provide backup power depends on your battery size, critical energy needs and, if paired with rooftop solar, weather conditions. Talk to a battery storage provider to learn more about your specific needs and options.

Your battery can charge when electricity is cheaper and discharge electricity for use when electricity from PG&E’s grid is more expensive. When paired with solar, a battery can help you get the most bill savings under Net Energy Metering and optimize the carbon-reduction impacts from your solar system. PG&E recommends you review the expected financial return on adopting batteries prior to investing in a system.

Information to share with your installer:

To apply for SGIP incentives: complete the online application.
Project developers who wish to apply should complete the SGIP Developer Registration Form.
Whether you’re applying for battery storage incentives, generation incentives, or both, please navigate to each tab to learn more about base incentives, eligibility, and timing to apply.

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Battery Storage
Renewable Generation

BASE INCENTIVES, ELIGIBILITY & TIMING TO APPLY:

	Base Incentives	Eligibility Criteria	Timing to Apply
	General Market (GM) incentives decrease based on the funds still available. To track the current GM incentive “step”, please visit the statewide SGIP site and select the budget category of interest (Large-Scale Storage). Please note: your base incentive may increase or decrease depending on several factors. Please see the FAQs section below to learn more.	To receive Large-Scale General Market incentives: the customer is either Commercial, Government, or Non-Profit	Large-Scale General Market incentives are currently available in PG&E’s territory. Updates can be found in the statewide announcements page.

PG&E wants to help you fund your self-generation project. Please see eligibility, incentives, application openings, and qualifying equipment below.

ELIGIBILITY, INCENTIVES, AND TIMING TO APPLY:

	Customer Eligibility Criteria	Incentive Level	Timing to apply
	PG&E customers are eligible if the equipment is considered “Qualified” or “Qualified if with 100% biogas” (see below)	To track the current Renewable Generation incentive, please visit the statewide SGIP site and select the budget category of interest (Generation).	Renewable Generation incentives are currently available in PG&E’s territory. Updates can be found in the statewide announcements page.

GENERATION EQUIPMENT QUALIFICATIONS:

	Qualified	Qualified if with 100% biogas	Not Qualified
	Wind turbines Onsite biogas or directed biogas or vented biogas Pressure reduction turbines	Fuel cells Internal combustion engines Microturbines Gas turbines	Solar Flaring biogas otherwise known as use/collect/destroy biogas or use/collect/destroy biomethane baseline

When do I receive the incentives and how do you recommend I pay for the upfront costs?

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.

When would I receive more than the base incentive?

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.

When would I receive less than the base incentive?

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

Energy Storage Duration (per kW)	Equity Resiliency incentives	Equity incentives	General Market incentives
0 to 2 hours	100%	100%	100%
Greater than 2 to 4 hours	100%	100%	50%
Greater than 4 to 6 hours	50%	50%	25%
Greater than 6 hours	0%	0%	0%

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:

BATTERY STORAGE

	Energy Capacity	Incentive Rate (Percentage of Base Incentive)
	0 to 2 MWh	100%
	Greater than 2 MWh to 4 MWh	50%
	Greater than 4 MWh to 6 MWh	25%
	Greater than 6 MWh	0%

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:

GENERATION TECHNOLOGY

	Generation Capacity	Incentive Rate (Percentage of Base Incentive)
	0 to 1 MW	100%
	Greater than 1 MW to 2 MW	75%
	Greater than 2 MW to 3 MW	50%
	Greater than 3 MW	0%

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).

	Step 1	Step 2	Step 3	Step 4	Step 5
General Market – Large-Storage Claiming ITC ($/Wh)	$0.36/Wh	$0.29/Wh	$0.25/Wh	$0.22/Wh	$0.18/Wh

Contact us

Email: selfgen@pge.com

Customer Service Center: 415-973-6436

Mailing address:

PG&E Payment Research
Attn: Self-Generation Incentive Program
PO Box 997310
Sacramento, CA 95899

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