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

The Self-Generation Incentive Program (SGIP) provides financial incentives for the installation of distributed generation technologies. 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). CCSE is the program administrator for SDG&E territory.

The program is currently funded through December 31, 2014, 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. We will begin accepting reservations for all technologies on Friday, June 6, 2014. Once our available budget is fully subscribed we will no longer accept reservations..

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.

What’s new for the 2014 Self-Generation Incentive Program

The 2014 program guidelines have no significant changes from 2013. Minor Handbook updates have been made in an effort to create a more user-friendly guide through the SGIP incentive application process. Some changes in the 2014 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).
  • Revised language has been included to clarify the appropriate substantiation of adequate wind resource for all wind technology projects

2014 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 $1.13
Waste Heat to Power $1.13

Pressure Reduction Turbine1

Non-Renewable Conventional CHP  
Internal Combustion Engine — CHP $0.46
Microturbine — CHP $0.46
Gas Turbine — CHP $0.46
Emerging technologies  
Advanced Energy Storage $1.62
Biogas $1.62
Fuel Cell — CHP or Electric Only $1.83

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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