With rapid growth in solar industries, residents of California are embracing different schemes and programs to lower their energy bills. The state encourages the adoption of energy storage solutions through its self-generated incentive program. In this blog, we will look at California battery storage incentives and the SGIP rebate scheme to help you with the growing energy demands.
California Battery Storage Incentives
The Self-Generation Incentive Program (SGIP) is a California Public Utilities Commission (CPUC) initiative that provides rebates for installing energy storage technology in homes, including battery storage systems designed for power outage use. CPUC’s SGIP supports various distributed energy resources, offering incentives for qualifying systems like wind turbines, waste heat to power technologies, pressure reduction turbines, internal combustion engines, microturbines, gas turbines, fuel cells, and advanced energy storage.
Rebates are available for both residential and non-residential facilities, enhancing emergency preparedness during power outages. Batteries, based on capacity and usage, play a crucial role in emergency plans. In preparation for the upcoming wildfire season, CPUC allocates funds through SGIP to prioritize high-risk areas, communities facing multiple Public Safety Power Shut-off (PSPS) events, and low-income or medically vulnerable customers.
Eligibility for Self Generation Incentive Program California
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 about $250 per kilowatt-hour, which covers about 25% of the average energy storage system cost. Additionally, two higher SGIP rebate categories, Equity and Equity Resiliency, are available for residential customers.
It is recommended to conduct research and identify local battery storage installers for assistance in gaining access to SGIP. Confirm your SGIP eligibility and select the appropriate technology. Seek assistance from the chosen installer for application and installation queries, as they will be able to guide you through the process.
SGIP Equity Resiliency
The California Public Utilities Commission’s (CPUC) Self-Generation Incentive Program (SGIP) offers rebates in two categories, Equity and Equity Resiliency, developed specifically for chosen communities. These rebates significantly reduce the cost of energy storage technology, potentially making it nearly or entirely free. Customers in the Equity category may receive $850 per kilowatt-hour, while those in the SGIP Equity Resilience category may receive $1,000 per kilowatt-hour. The California battery storage incentives program offers rebates for the installation of energy storage technology in both households and non-residential buildings.
Residential
Residential customers who 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) are eligible for Equity Resiliency. In addition to the above, applicants must meet one of the following additional criteria:
- Residing in deed-restricted multifamily housing or a single-family home with resale restrictions.
- Current participation in a utility Medical Baseline Program
- Notification of a serious illness or life-threatening condition to the utility.
- The receipt or reservation of other solar-related incentives, such as SASH, DAC-SASH, MASH, or SOMAH programs.
- Reliance on electric pump wells for water in your home.
Also See: Is Off-Grid Solar Legal in California?
Non- Residential
Non-residential eligibility under SGIP Equity Resiliency requires two or more Public Safety Power Shut-offs (PSPS) or being located in Tier 2 or 3 High Fire Threat District (HFTD) and serving customers classified as DACs or Low Income Communities. In addition to the above, applicants must meet one of the following additional criteria:
1. Serving as a police station, a fire station, an emergency response provider, an emergency operations center, a 911 call center, a medical facility, a private or public natural gas, electric, water, wastewater, or flood facility, a jail or prison, a utility-designated PSPS assistance centre, a cooling centre, or a homeless shelter.
2. Operating a grocery store, supermarket, or corner store with annual gross receipts of less than $15 million.
3. Functioning as an Independent Living Centre or a Food Bank.
Also Read: Ameren Illinois Solar Incentives
How does California SGIP Battery Rebate Work?
Depending on your eligibility category, you may qualify for either $850 or $1,000 per kilowatt-hour under the Equity Category, amounts that could cover the entire cost of both technology and installation for an energy storage system in your home. It’s crucial to note that the California battery storage incentives become available only after completing the application process and installing the technology. However, some installers might consider covering the initial costs, a point worth discussing during your initial conversations. Be aware that certain installers may request an upfront down payment.
While the SGIP rebate application process is typically more straightforward for homeowners, renters may also qualify, provided they collaborate with their landlords. It’s advisable to coordinate with your installer and local Program Administrator to understand the specific application requirements.
Also, check out Solar Incentives and Rebates in Canada
How much is the SGIP Rebate?
The Self-Generation Incentive Program (SGIP) of California offers a financial rebate to customers installing battery storage systems, currently accounting for 15-20% of the average battery cost. California SGIP battery rebate initiative targets a reduction in greenhouse gas emissions by implementing pricing signals for off-peak charging, complemented by the integration of increased renewable energy on the grid. Leveraging these rates can lead to cost savings by charging the battery storage system during off-peak hours and discharging it during peak hours.
Must Read: Alabama EV Home Charger Rebate
Does Battery Storage Qualify for Solar Tax Credit?
The federal solar investment tax credit (ITC) is a valuable incentive for installing solar panels in residential or commercial settings, reducing overall installation costs and accelerating return on investment. This tax credit, amounting to 30% of the total solar installation cost, also extends to solar battery storage systems.
A comprehensive understanding of the ITC is crucial for enhancing energy independence. The Inflation Reduction Act of 2022 (IRA) has expanded the solar tax credit to include both battery systems connected to solar panels and standalone solar batteries. To qualify for the federal tax credit for solar batteries, the battery system must have a capacity rating of 3 kilowatt-hours (kWh) or greater, a criterion that is met by most residential solar batteries.
The 30% federal tax credit for solar battery storage applies to systems installed between 2023 and 2032. Opting to integrate solar plus storage into your property sooner not only ensures tax credit savings but also shortens the solar payback period.
Ultimately, the California battery storage incentives not only offer energy-saving advantages but also play a vital role during power outages. With the Self-Generation Incentive Program, the state provides rebates to both residential and non-residential facilities, ensuring a more sustainable future for everyone.
1 Comment
Won’t the CPUC/SGIP rebate eliminate the basis of a battery project and thus eliminate the possibility of claiming a tax credit?