2. Background
In Decision (D.) 01-03-073, the Commission established the SGIP to encourage the development and commercialization of new DG technologies. DG refers to generation technologies installed on the customer's side of the utility meter that provide electricity for all or a portion of a customer's onsite electric load. SGIP provides funding to qualifying entities1 for installing DG. Incentives offered under the SGIP vary based on the technology funded and whether the DG facility uses renewable fuel. Current SGIP incentives are as follows:
Table 1: SGIP Incentive Levels2
Incentive Level |
Eligible Technologies |
Incentive3 |
Level 2 Renewable |
Wind Turbines Renewable Fuel Cells |
$ 1.50 per watt $ 4.50 per watt |
Level 3 Non-Renewable |
Non-Renewable Fuel Cells |
$ 2.50 per watt |
With regard to Level 2 incentives for renewable fuel cells, the Handbook used by the SGIP Program Administrators (PAs)4 to implement the program limits the scope of eligible renewable fuels to those that are on-site. (Handbook, Section 4.3.2, at 37). However, the SGIP Working Group5 has approved an exception to allow Level 2 SGIP funding where the renewable fuel is delivered by truck from an offsite fuel production facility to the DG facility.
1 At its inception, SGIP funded solar photovoltaics, wind turbines, fuel cells, microturbines, small gas turbines, internal combustion engines and combined heat and power cogeneration plants. Pursuant to Pub. Util. Code § 379.6, SGIP is currently limited to wind and fuel cell technologies.
2 Initially, SGIP also included Level 1 incentives for photovoltaics. Level 1 was dropped when the Commission moved its photovoltaic incentive program to the California Solar Initiative.
3 Pursuant to Pub. Util. Code § 379.6(g), SGIP will pay an additional 20 percent incentive for installation of DG from "California suppliers," as defined in the statute.
4 The SGIP PAs are Southern California Edison (SCE), Southern California Gas Company (SoCalGas), Pacific Gas and Electric Company (PG&E), and the California Center for Sustainable Energy (CCSE).
5 Per D.04-12-045, the SGIP Working Group is composed of SCE, San Diego Gas & Electric Company, SoCalGas, PG&E, the Commission's Energy Division, the California Energy Commission, and CCSE.
