Today we will be going over a popular rebate program within the solar industry that does not have a lot of traction outside of solar installers. Batteries are a great way to create a micro-grid for your home, or property, however, they do come at an additional and greater cost than solar systems do. Solar and batteries do complement each other to take advantage of TOU power arbitrage and to create self-sustain homes that can have their own micro-grids, and the State of California is there to help you build your system if you decided to go this route with the SGIP rebate program. The program is generally straight-forward, however, the administration of the program can be a little rough at times, but if you make it through you will most likely get a rebate through the program. I think the best way to go over this program is with a question and response format, rather than a traditional essay format, but let me know if you have any additional questions or comments in the section below.
General Questions about SGIP:
What is SGIP, and what does it stand for?
SGIP is an abbreviation for the Self Generation Incentive Program, and the program is a rebate scheme designed to lower the cost of battery installations for homes and businesses. That is run by the California Public Utilities Commission on the State-level and then certain utilities are designated as program administrators for their areas.
What kind of a rebate program is it?
SGIP is a rebate program for grid-tied batteries that are installed on-site for homes and business that are served by specific utilities in the State of California, and the rebate offers rates of .25cents per watt hour for the standard rebate with a cap around $5000. The Utilities that are a part of the program and are program administrators in their region: The Center for Sustainable Energy, PG&E, SoCalGas, and Southern California Edison.
Who is eligible for a SGIP Rebate?
Any person that is served by the program administrators, including even if you receive your gas service from one these organizations and your electricity from another (such as AMP electricity clients that receive PG&E gas service)
How do I apply for a SGIP rebate?
Through your contractor that is installing your on-site grid tied battery. Contractors must apply to the local program administrators to get access to the rebate program, as there are caps on how much a specific firm can receive.
When does the rebate get distributed? The rebate gets sent out, after the project has been completed and the work has been accepted and verified by the program administrators. There is general SGIP website that contractors use that let’s them monitor the progress of rebates submitted and respond to comments from the utility/program administrator.
Is there a limit on how much I can receive from the Program, and is there a time limit for the reservation?
Yes, there is a limit to the rebate and yes, there is a limit to how long the program administrator will hold your reservation. You and your team have ONE year from when your reservation for the rebate was accepted to complete the project. Otherwise, you may lose your rebate and your ability to re-apply for it. Additionally, the SGIP rebate works in steps, so you may receive a lower rebate amount than was initially expected because the rebate has stepped down since the reservation began.
How can I track which step for the rebate my project is in?
SGIP metrics website shows the current amounts for all the program administrators and the funding pools for each rebate type. If you are a home-owner you will most likely be interested in the “Small Residential Storage” category, and that information is available from the drop down on the upper left of the page.
What program or rebate type can I apply for?
Each rebate pool under the SGIP framework has different monetary amounts. The SGIP equity and equivalency rebate covers the highest amount for battery installations and the standard SGIP rebate covers the least amount, however, to qualify for the largest rebate amounts a property owner must demonstrate specific needs and impacts from the grid (pilot program information here).
How do I make sure that I receive a rebate payment- What steps do I have to make?
Stay in contact with your contract and your utility provider/program administrator because if there are any deficiencies in your application than the program administrators must notify you.
What steps does my battery installer have to make to ensure that my rebate does not fall through?
Your installer should be diligent at checking the rebate administration website as different requests may come through and plan-sets are used in the application must be thoroughly checked to catch any typographical errors that can pause the process.
Everything considered, is SGIP worth it?
The answer for me would be a definitive yes if I was set on getting a battery currently. The difficulties with administering are far outweighed by the value of the rebate which can lower your installation costs from $1000 to over $20,000 depending on which rebate you qualify for as the amount per program varies from 20 cents per watt hour of storage to $1.00 per watt hour. The major caveat would be to make sure that you and your installer have products that are readily available so that your rebate does not time out because a manufacturer’s products where not available due to production issues or not being able to be permitted. However, a battery expansion may not be as cost efficient as designing a larger solar system.
Any Updated News?
Yes, the equity equivalency program has been modified to included mostly medical reasons, for more information click here.
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