The CPUC's Self-Generation Incentive Program (SGIP) provides incentives to support existing, new, and emerging distributed energy resources. The SGIP provides rebates for qualifying distributed energy systems installed on the customer's side of the utility meter. As of January 1, 2008, qualifying technologies include wind turbines and fuel cells.
For information on how to apply for incentives in your area, please contact the Program Administrator for your utility:
Prior to 2007, the SGIP also included rebates for qualifying solar photovoltaic (PV) systems. However, since January 1, 2007, incentives for solar PV are provided through the California Solar Initiative.
On April 24, 2008, the CPUC raised the cap on cash incentives for individual clean energy projects available through its SGIP from 1 megawatt to 3 megawatts.
OVERVIEW OF THE SGIP PROGRAM
The SGIP is one of the largest DG incentive programs in the United States, with nearly 1,200 projects on-line. Since the inception of the SGIP in 2001, the on-line capacity of DG technologies has grown at an average rate of 43 MW per year.
By the end of 2007, the total online capacity of SGIP projects was 300MW. Cogeneration technologies represent over 50% of that on-line capacity, while PV represents 40%.
A summary of program statistics through 12/31/2006 can be found here.
A summary of key SGIP program information can be found in this short flyer published by the California Center for Sustainable Energy.
SELF GENERATION INCENTIVE PROGRAM REPORTS
The SGIP conducts regular reports to monitor and evaluate the impact of the program and the administrative processes of the Program Administrators. A list of all of these reports appears below.
SELF GENERATION AND NET METERING
Customers who install small solar, wind, biogas, and fuel cell generation facilities (1 MW or less) to serve all or a portion of onsite electricity needs are eligible for the state's net metering program. The customer receives a financial credit for power generated by their onsite system and fed back to the utility. The credit is used to offset the customer's electricity bill. The utility does not pay for power above the amount of electricity the customer consumes from the utility.
Net metering provides additional consumer benefits. Most net metered projects pay little to no charges to interconnect to the utility grid. Net metered customers pay nonbypassable charges, such as the Department of Water Resources surcharge and the Public Goods Charge (a nonbypassable surcharge to fund public goods research, development and demonstration, energy efficiency activities, and low income assistance programs) based on net rather than gross consumption.
The PUC submitted a net metering status report to lawmakers in March 2005. PUC staff recommended increasing the number of eligible systems allowed to participate in net metering and clarifying jurisdictional authority (state vs. federal) regarding sales of electricity from net metered customer-generators to utilities.