California Residents and the Self-Generation Incentive Program (SGIP)
September 20, 2023
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There is a limited funding amount available for qualified homeowners wanting to take advantage of installing solar battery technology in their homes!
Update: As of November 2023, funding for this program has been paused due to the wait list of sign ups.
Follow us for updates or changes that may affect availability.
Let's start off by covering just what is SGIP?
The Self-Generation Incentive Program (SGIP) is a California Public Utilities Commission (CPUC) program that offers rebates for installing energy storage technology in your home. These storage technologies include battery storage systems that can function in the event of a power outage.
Why would you need energy storage for your home?
• If you already have solar panels on your roof, you can store excess solar energy and use it when the sun is not out.
• Even if you do not have solar panels, this technology allows you to store energy from the electric grid and utilize that power in the event of a power outage. Depending on the battery and how much you are using it, this could last several hours, or longer.
• Battery storage can be an important component of a more robust emergency preparedness plan in the event of a power outage.
How do you know if you are eligible for SGIP rebates?
Any residential customer of Pacific Gas and Electric Company (PG&E), Southern California Edison (SCE), Southern California Gas Company (SoCalGas), or San Diego Gas & Electric (SDG&E) is eligible for a General Market SGIP rebate of approximately $250/kilowatt-hour, which means the rebate covers approximately 25 percent of the cost of an average energy storage system. In addition to this General Market rebate, there are two additional categories of higher SGIP rebates for residential customers: Equity and Equity Resiliency.
What is the EQUITY Rebate and EQUITY RESILIENCY Rebate Rate?
There are two options:
Equity Rebate: $850/kilowatt-hour Rebate Rate: Rebate covers approximately 85 percent of the cost of an average energy storage system.
To qualify you must meet one of the following criteria:
- You live in a single-family home and your home is subject to resale restrictions.
- You live in a single-family home and have already participated in or have reserved incentives in the Single-family Affordable Solar Homes (SASH; https://bit.ly/2wtyJQh) or Disadvantaged Communities –Single-family Solar Homes (DAC-SASH) (https://bit.ly/2wZZVXc) program.
- You live in an apartment that is considered low income housing and includes at least five rental units, and you must either be located in a Disadvantaged Community (DAC)* or at least 80 percent of the apartment building residents have incomes at or below 60 percent Area Median Income.
- You live in an apartment and your property has already participated in the Solar on Multifamily Affordable Housing (SOMAH; https://bit.ly/32L88dT) Program or the Multifamily Affordable Solar Housing (MASH; https://bit.ly/2TkIdqk) Program
- You live anywhere in California Indian Country.
2- Equity Resiliency Rebate: $1,000/kilowatt-hour Rebate: Rebate covers close to 100 percent of the cost of an average energy storage system
To qualify you must meet all of the following criteria:
- You have experienced two or more utility Public Safety Power Shut-offs (PSPSs) OR live in a Tier 2 or 3 High Fire Threat District (HFTD)
AND one of the following additional criteria
- You live in multifamily deed-restricted housing or a single-family home subject to resale restrictions.
- You are currently enrolled in a utility Medical Baseline Program: https://consumers.cpuc.ca.gov/ medicalbaseline.
- You have notified your utility of serious illness and/or life-threatening condition
- You have received or reserved other solar-related incentives (including SASH, DAC-SASH, MASH, or SOMAH programs)
- Your home relies on electric pump wells for water
What is the maximum amount of rebate a homeowner is eligible for?
$26,400 is the maximum amount for any particular program.
What do you need to do to qualify for this program?
The best thing to do is
contact a qualified installer, such as Renewable Solutions Inc., and discuss with them your interest in the rebate programs. Your installer will ask you questions regarding your situation and then should be able to discover if you qualify for the program before they commit you into any actions.
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The Inflation Reduction Act has offered up more incentives for those considering solar in 2024 and beyond.
With PG&E proposing 22% rate increases, now is a great time to start looking at options to go solar.
NEM 3.0: A New Era for Solar in California Net energy metering (NEM) is a policy that allows solar customers to offset their electricity bills by sending excess solar power back to the grid. NEM has been a major driver of solar adoption in California, and it has helped to make the state a leader in clean energy. In December 2022, the California Public Utilities Commission (CPUC) approved NEM 3.0, a new version of the NEM program. NEM 3.0 makes some significant changes to the way that solar customers are compensated for their excess energy, and it is expected to have a major impact on the solar industry in California. What is NEM 3.0? NEM 3.0 is based on a concept called "avoided cost," which means that solar customers are compensated for the amount of energy that they save the utility. This is in contrast to NEM 2.0, which was based on a concept called "retail rate," which meant that solar customers were compensated for the amount of energy that they exported to the grid at the same rate that they paid for electricity. The avoided cost rate is lower than the retail rate, which means that solar customers will receive less compensation for their excess energy under NEM 3.0. However, NEM 3.0 also includes a number of new benefits for solar customers, such as: A 20-year grandfathering period for customers who install solar before April 15, 2023. This means that these customers will be able to keep their NEM 2.0 rates for 20 years, even after NEM 3.0 goes into effect. A new demand charge credit for solar customers with battery storage. This credit will help to offset the cost of the demand charge, which is a fee that utilities charge customers based on their peak electricity usage. A new program called the Solar Self-Generation Incentive Program (SSIG). This program will provide financial assistance to low-income customers who install solar. How will NEM 3.0 affect solar adoption in California? The impact of NEM 3.0 on solar adoption in California is still uncertain. Some experts believe that the lower compensation rates under NEM 3.0 will discourage some people from installing solar, while others believe that the new benefits under NEM 3.0, such as the 20-year grandfathering period and the demand charge credit, will offset the lower compensation rates. It is also important to note that NEM 3.0 is only one factor that will affect solar adoption in California. Other factors, such as the cost of solar panels and the availability of financing, will also play a role. Overall, NEM 3.0 is a significant change to the NEM program in California. It is too early to say what the long-term impact of NEM 3.0 will be, but it is clear that it will have a major impact on the solar industry in the state.
What Can Solar Batteries Do? Solar batteries are a relatively new technology, but they are quickly becoming more popular as people look for ways to reduce their reliance on the grid and save money on their energy bills. Solar batteries can do a lot of things, but here are some of the most common: Store excess solar energy. Solar panels produce electricity during the day, but most people use more electricity at night. Solar batteries can store excess solar energy during the day and then use it to power your home at night. This can help you reduce your reliance on the grid and save money on your energy bills. Provide backup power during outages. If there is a power outage, your solar panels will stop producing electricity. However, if you have a solar battery, you can still power your home from the stored energy. This can be a lifesaver during a power outage, especially if you have medical devices or other essential appliances that need electricity. Increase your self-consumption. Self-consumption is the amount of electricity that you generate from your solar panels and use in your home. Solar batteries can help you increase your self-consumption by storing excess solar energy during the day and using it at night. This can help you reduce your reliance on the grid and save money on your energy bills. Earn money from the grid. In some states, you can earn money by selling excess solar energy back to the grid. Solar batteries can help you maximize your earnings by storing excess solar energy during the day and then selling it back to the grid at night.
Purchasing Solar Energy for Your Home Should be a Long Term Investment Solar panels are a great way to generate clean, renewable energy for your home or business. But how long should you expect a solar system to work? The lifespan of a solar system depends on a number of factors, including the quality of the solar panels, the climate you live in, and how well you maintain your system. However, most solar panels are expected to last for 25-30 years. In the first few years of operation, solar panels will produce the most electricity. The amount of electricity they produce will then decline gradually over time. After 25-30 years, solar panels will still produce some electricity, but they may not be able to meet all of your energy needs. There are a few things you can do to extend the lifespan of your solar system: Choose high-quality solar panels. There is a wide range of quality in solar panels. It is important to choose panels from a reputable manufacturer with a good warranty. Install your solar system properly. A well-installed solar system will be more likely to last for the long term. Maintain your solar system regularly. This includes cleaning the solar panels and inspecting the system for any damage. By following these tips, you can help to ensure that your solar system will work for many years to come. Here are some additional factors that can affect the lifespan of a solar system: Weather conditions. Solar panels can be damaged by extreme weather conditions, such as hail, snow, and high winds. If you live in an area with harsh weather, it is important to choose solar panels that are designed for your climate. Solar irradiance. The amount of sunlight that your solar panels receive will affect their output. If you live in an area with low solar irradiance, your solar panels may not produce as much electricity as they would in an area with high solar irradiance. Shading. Solar panels that are shaded will produce less electricity than solar panels that are in full sunlight. If your solar panels are shaded by trees or buildings, you may need to trim the trees or install shades to improve their output. Overall, solar panels are a long-lasting investment that can save you money on your energy bills for many years to come. By choosing high-quality solar panels, installing them properly, and maintaining them regularly, you can help to ensure that your solar system will work for many years to come.
