The Self-Generation Incentive Program (SGIP) provides incentives for residential and commercial customers installing qualifying distributed energy resources (DERs) on the customer’s side of the utility meter. Through increased deployment of DERs, SGIP aims to improve the overall efficiency of the electric distribution and transmission system.

For over twenty years, SGIP has made a positive impact on California’s energy grid by enabling projects that provide baseload generation, load shifting and resiliency options for SoCalGas customers.

Eligible Technologies

SGIP incentives are available for Generation and Energy Storage technologies. Select below to view the list of eligible technologies.

 

Generation projects include a variety of technologies that generate electricity using 100% renewable fuel (on-site biogas, directed biogas or hydrogen).

 

Eligible Generation Technologies

  • Fuel Cell (Electric-only or Combined Heat and Power)
  • Linear Generator
  • Microturbine
  • Gas Turbine
  • Pressure Reduction Turbine
  • Steam Turbine
  • Wind Turbine
  • Internal Combustion Engine1
     

Incentive Rates

Incentive Type

Generation Budget

Base Incentive

$2.00/W

Resiliency Adder

$2.50/W

California Manufacturer Adder2

20%

 

Tiered Incentive Rates

Generation project incentives are paid up to 3MW of rated capacity (not to exceed $5 million cap per site) with tiered incentive rates. For projects that are greater than 1MW, incentives decline according to the following schedule:
 

Rated Capacity (MW)

Percentage of Base incentives

0-1 MW

100%

>1 MW -2 MW

75%

>2 MW -3 MW

50%

>3 MW

0%


For program rules, visit the SGIP Handbook

Generation Technologies – Eligible Renewable Fuels

  • On-site Biogas – Renewable fuel produced at the SGIP project site with biogas derived from digester gas, landfill gas, or biomass.
  • Directed Biogas – Renewable fuel produced within California and delivered to the SGIP project site through a common carrier pipeline.
  • Hydrogen – Produced at a SGIP project site or delivered to a SGIP project site by vehicle or dedicated pipeline.
    • Eligible Hydrogen Sources Include:
      • Non-combustion thermal conversion of biomass through gasification or pyrolysis.
      • Electrolysis using 100% renewable electricity.
      • Hydropower, if the project is located onsite or if the electricity is directly connected to the project via a dedicated line.

Energy storage projects include a variety of technologies that store energy that can later be discharged to shift demand away from peak periods.

Eligible Energy Storage Technologies

  • Electrochemical
  • Mechanical
  • Thermal

Incentive Rates

Incentive Type

Large-Scale Energy Storage Budget

Equity Energy Storage Budget

Equity Resiliency Energy Storage Budget

Small-Residential Energy Storage Budget

Equipment Incentive

$0.18 - $0.25/Wh

$0.85/Wh

$1.00/Wh

$0.15/Wh

Resiliency Adder

Additional $0.15/Wh

N/A

N/A

N/A

California Manufacturer Adder2

20%

20%

20%

20%


 

Tiered Incentive Rates

Energy storage incentives are paid up to 6 MWh of capacity with tiered incentives rates. For energy storage projects that are greater than 2 MWh, incentives decline according to the following schedule: 

 

Incentive Duration Decrease - Projects without Backup Capability

Discharge Duration (hours)

Percent of Base Incentives

0 to 2 hours

100%

Greater than 2 hours to 4 hours

50%

Greater than 4 hours to 6 hours

25%

Greater than 6 hours

0%


Incentive Duration Decrease - Projects with Backup Capability

Discharge Duration (hours)

Percent of Base Incentives

0 to 2 hours

100%

Greater than 2 hours to 4 hours

100%

Greater than 4 hours to 6 hours

50%

Greater than 6 hours

0%

Budgets and Eligibility

SGIP budgets and eligibility vary depending on customer types and project site location. For example, technologies installed at a project site determined to be a critical facility may be eligible for the Resiliency Adder in the Generation Budget, Large-Scale Energy Storage Budget, or the Equity Resiliency Energy Storage Budget. A full list of customer types and budget eligibility pathways can found in the SGIP Handbook.

The SGIP budgets and eligibility are:

 

Helpful Eligibility Tools

 

Additional Resources

For additional assistance, please email us at selfgeneration@socalgas.com


1Projects may not be located in a county listed as a severe or extreme federal nonattainment area for particulate matter in the U.S. Environmental Protection Agency Green Book for any of the three years prior to the SGIP Application date. 2California Manufacturers of Incentivized Technologies are eligible for an additional 20% incentive adder. To qualify, a project must demonstrate that at least 50% of its capital equipment value is manufactured by an approved California Manufacturer.