Self-Generation Incentive Program – Residential Solar and Storage Equity

The California Public Utilities Commission (CPUC) administers the Self-Generation Incentive Program (SGIP), a statewide initiative designed to provide financial incentives for the installation of qualifying distributed energy resources on the customer’s side of the utility meter. SGIP supports existing, new, and emerging technologies, including wind turbines, waste heat to power systems, pressure reduction turbines, internal combustion engines, microturbines, gas turbines, fuel cells, linear generators, advanced energy storage systems, and combined solar and storage solutions. The program aims to promote cleaner energy generation, improve grid reliability, reduce greenhouse gas emissions, and increase energy resilience for California customers. A major component of SGIP is the Residential Solar and Storage Equity budget, which provides enhanced incentives for low-income residential electric and/or gas customers in California. This budget was established pursuant to Assembly Bill 209 and further implemented through CPUC decisions and resolutions, with $280 million allocated for this purpose. Eligible applicants may install paired solar and battery storage systems, which can deliver energy bill savings, offer backup power during outages, and contribute to grid stability. The program also includes related budgets for Equity Resiliency, San Joaquin Valley residential and non-residential customers, non-residential equity projects, small and large-scale storage, and certain generation technologies. Incentive amounts vary by budget category. For the Residential Solar and Storage Equity budget, incentives are set at $1,100/kWh for storage and $3,100/kW for solar. Other categories have different incentive rates, such as $1,000/kWh for Equity Resiliency and San Joaquin Valley non-residential, $850/kWh for non-residential equity, $250/kWh for large-scale storage, and $2,000/kW for generation technologies. Program rules and performance requirements are detailed in the SGIP Handbook, and all applicants must meet eligibility criteria, including customer enrollment in a qualified Demand Response program. Participants have one year from fund reservation to fulfill program requirements. Applications for the Residential Solar and Storage Equity Incentives opened June 2, 2025, for low-income customers of investor-owned utilities (IOUs) and will open before the end of 2025 for Los Angeles Department of Water and Power (LADWP) customers. The program operates under a recurring funding structure, with annual budget cycles determined by CPUC decisions. Applicants are encouraged to work with an Approved SGIP Developer to navigate the application process. While CPUC maintains a developer list, it does not endorse any specific installer. Each utility has its own Program Administrator responsible for processing applications and providing guidance. Interested applicants should contact their respective Program Administrator for detailed instructions. Program Administrators include LADWP, Pacific Gas and Electric Company (PG&E), San Diego Gas & Electric (SDG&E) via the Center for Sustainable Energy, Southern California Edison (SCE), and Southern California Gas Company (SoCalGas). Contact information includes dedicated SGIP email addresses for each administrator. The SGIP home page provides real-time budget status and links to the latest SGIP Handbook, program reports, workshop notices, and procedural rulings. The program is structured to evolve with state policy priorities and available funding. CPUC has periodically updated SGIP through formal decisions and resolutions, such as implementing new storage sizing rules, integrating federal tax credits, and establishing targeted equity budgets. Additional resources are available for low-income households through related programs like CARE and FERA energy bill discounts, the Energy Savings Assistance Program, and various disadvantaged community solar initiatives. SGIP’s comprehensive approach aims to accelerate clean energy adoption while ensuring that vulnerable populations benefit equitably from California’s transition to a more sustainable energy system.