SoCalGas - Self-Generation Incentive Program
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Self-Generation Incentive Program

The 2014 funds for Renewable and Emerging Technologies (RN/ET) has been fully allocated. As a result we are no longer accepting 2014 RN/ET applications. Funds for Non-Renewable (CHP) are still available and we will continue accepting 2014 Non-renewable applications through December 31, 2014 (provided funds are available).

The 2015 Program Year will begin accepting applications on January 20th. Program forms and Handbook will be posted on January 13, 2015. Reservations submitted prior to the opening date will not be accepted.

The Self-Generation Incentive Program (SGIP) provides financial incentives for the installation of Distributed Energy Resources. SGIP is a ratepayer-funded program, overseen by the California Public Utilities Commission, and available to retail electric and gas customers of the four California investor-owned utilities (Pacific Gas & Electric, Southern California Edison, Southern California Gas and San Diego Gas & Electric).

The program has been extended through December 31, 2020 and funded through December 31, 2019 with an annual statewide incentive budget of $83 million. Southern California Gas Company’s share is approximately $8 million a year. The budget is divided into two categories, 75% is allocated to Renewable and/or Emerging Technologies (RN/ET) and 25% for Non-renewable (NR) CHP technologies.

About the Self-Generation Incentive Program

The Self-Generation Incentive Program (SGIP) was initially conceived of as a peak-load reduction program in response to the energy crisis of 2001. Assembly Bill 970 (Ducheny, 2000) designed the Program as a complement to the California Energy Commissions’ Emerging Renewables Program, which focused on smaller systems than the SGIP.

Since 2001, the SGIP has evolved significantly. On September 8, 2011 D11-09-015 SGIP modified SGIP to conform to Senate Bill 412 (Kehoe, 2009). SGIP eligibility is now based on Greenhouse Gas emissions reductions.

On December 18, 2014 the Commission approved the proposed decision authorizing SDG&E, SoCalGas, SCE, and PG&E to continue to collect funds for the Self Generation Incentive Program (SGIP) pursuant to PU Code Section 379.6 as amended by Senate Bill 861. SGIP will operate under the existing rules until the California Public Utilities Commission implements the directives in Senate Bill 861 in a later decision.

What’s new for the 2015 Self-Generation Incentive Program

The 2015 program guidelines have no significant changes from 2014. Minor Handbook updates have been made in an effort to comply with any regulatory requirements. Some changes in the 2015 Handbook include:

  • Incentive Decline: As per D.11-09-015 beginning 2013 Emerging Technologies and Biogas Rates will decreased 10%, and all other technologies will decrease 5% annually (see Rates table below).
  • Applicants will need to apply online using the 2015 Online Reservation Request.

2015 Self-Generation Incentive Program Rates

Eligible technologies are grouped into three incentive levels shown below:

Technology Type Incentive ($/W) 
Renewable and Waste Energy Capture   
Wind Turbine $1.07
Waste Heat to Power $1.07

Pressure Reduction Turbine1

Non-Renewable Conventional CHP  
Internal Combustion Engine — CHP $0.44
Microturbine — CHP $0.44
Gas Turbine — CHP $0.44
Emerging technologies  
Advanced Energy Storage $1.46
Biogas $1.46
Fuel Cell — CHP or Electric Only $1.65

For projects that are greater than 1 MW up to 3 MW, the incentive declines according to the table below:


 Incentive Rate (Percent of Base)
0 - 1 MW 100%
1 - 2 MW 50%
2 - 3 MW 25%

1Pressure reduction turbine includes but is not limited to, any small turbine generator installed in an existing, man-made channel for delivery of water, steam or natural gas

Who is eligible?

Retail electric and gas customers of Southern California Gas Company (SoCalGas), San Diego Gas & Electric (SDG&E), Pacific Gas & Electric, or Southern California Edison are eligible to participate in the SGIP.

Eligibility requirements:

  • Host customer’s facility must be a customer of SoCalGas.
  • Equipment must be new, commercially available, and permanently installed.
  • Equipment must be connected to the grid.
  • Must offset a portion or a single facility’s entire electric load.
  • Electric load cannot be on interruptible rate schedules (such as SCE I-6) or load management programs.
  • Applicants cannot apply to two or more administrators for funding for the same project.

Program modification

Parties interested in proposing changes to the Working Group and the CPUC must follow the process described in the Program Modification Guidelines.

This process is used to propose new technologies or SGIP rule changes.


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