Self-Generation Incentive Program

The PUC's Self-Generation Incentive Program (SGIP) is a statewide program developed to provide incentives for the installation of distributed energy resources. The SGIP provides rebates for systems sized up to 5 MW. Generation technologies involved in the SGIP include microturbines, fuel cells, and wind turbines.

Incentives vary by technology and fuel type. For information on how to apply for incentives in your area, please contact the program administrator for your utility:

• PG&E
• Edison
• SoCalGas
• California Center for Sustainable Energy

Prior to 2007, the SGIP also included photovoltaic rebates.  However, since January 1, 2007, incentives for photovotaics are now provided through the California Solar Initiative, which included slight modifications to the 2006 SGIP. Our Q&A is designed to assist those in need of guidance about what the decision means in terms of currently involved in a rebate application for PV in under the old version of the SGIP program.

Introduction to the SGIP Program

• The SGIP represents the largest DG incentive program in the United States, with over 940 projects on-line. 
• A summary of program statistics through 12/31/2006
• Since inception of the SGIP in 2001, the on-line capacity of DG technologies has grown at an average rate of 37 MW per year. 
• At the end of 2006, the total on-line capacity of the SGIP represented 223 MW.
• 56 MW of capacity was added in 2006.
  22% of program to-date total.
  88% of annual total for 2005
• Cogeneration technologies represent nearly 2/3 of the on-line capacity of projects installed under the SGIP while PV represents the remaining 1/3. 
• Within cogeneration technologies, the vast majority is represented by internal combusion engines (116 MW); followed by microturbines (17 MW) and a small number of fuel cells (7 MW).
• The amount of incentives paid under the SGIP has also advanced steadily, increasing substantially between 2005 and 2006 from $273 million to $403 million.
• Over 70 percent of incentives were paid to PV projects.

Self Generation Incentive Program Reports

Each year, the SGIP program conducts an Impacts Evaluation report.  A summary of the 2006 impacts can be found here

• PUC Self-Generation Incentive Program Cost-Effectiveness Evaluation Report (PDF 2 MB)
• 2001 Evaluation - June 2002
• 2002 Impacts Evaluation 
• 2002 Process Evaluation 
• 2004 Impacts Evaluation
• 2005 Impacts Evaluation
• 2006 Impacts Evaluation 
• Program Administrator Comparison (September 2003)

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.