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SGIP—Program Background

In September 2000, Assembly Bill 970 (AB 970) was approved, which called for the creation of more energy supply and demand programs. As a result, in March 2001, the California Public Utilities Commission (CPUC) issued a decision creating the Self-Generation Incentive Program (SGIP) to offer financial incentives to their customers who install certain types of distributed generation facilities to meet all or a portion of their energy needs. In late 2003, AB 1685 extended the SGIP through 2007. Then, in late 2006, AB 2778 extended the SGIP again through 2011. In early 2006, the CPUC established the California Solar Initiative (CSI) and ordered changes to transition solar from the SGIP into the CSI beginning in 2007. Finally in 2011 as a result of the implementation of SB 412 the program was modified to its current structure with a focus on the reduction of greenhouse gas (GHG) emissions and was extended through 2014.