Self-Generation Incentive Program

Find out how you may be able to benefit from the Self-Generation Incentive Program.

The Self-Generation Incentive Program (SGIP) is currently closed to new applications.  At this time, the SGIP is undergoing regulatory modifications and a 2017 program opening date will be announced after modifications are finalized by the California Public Utilities Commission and the Program Administrators (PAs). For more information regarding program modifications, please read Decision 16-06-055*  and Energy Division’s Final Resolution E-4824*  .    
Please note, the PAs will be hosting an SGIP Quarterly Workshop on March 10, 2017 in San Francisco. The purpose of this workshop is to provide information regarding program opening, regulatory modifications, and to answer stakeholder questions. Event details and agenda will be posted to the service list 12-11-005*  prior to the workshop.
The Self-Generation Incentive Program (SGIP) provides rebates for qualifying distributed energy systems installed on the customer's side of the utility meter. Qualifying technologies include wind turbines, waste heat-to-power technologies, pressure reduction turbines, internal combustion engines, microturbines, natural gas turbines, fuel cells and advanced energy storage systems.
Generation Technology / Technology Type Step 1: Initial Incentive Rate Step 1: Max Incentive w/ biogas adder Step 2: Initial Incentive Rate Step 2: Max Incentive w/ biogas adder Step 3: Initial Incentive Rate Step 3: Max Incentive w/ biogas adder
Wind $0.90/W n/a $0.80/W n/a $0.70/W n/a
Waste Heat to Power $0.60/W n/a $0.50/W n/a $0.40/W n/a
Pressure Reduction Turbine $0.60/W $1.20/W $0.50/W $1.10/W $0.40/W $1.00/W
Internal Combustion Engine CHP $0.60/W $1.20/W $0.50/W $1.10/W $0.40/W $1.00/W
Microturbine CHP $0.60/W $1.20/W $0.50/W $1.10/W $0.40/W) $1.00/W
Gas Turbine CHP $0.60/W $1.20/W $0.50/W $1.10/W $0.40/W $1.00/W
Steam Turbine – CHP $0.60/W $1.20/W $0.50/W $1.10/W $0.40/W $1.00/W
Fuel Cell CHP $0.60/W $1.20/W $0.50/W $1.10/W $0.40/W $1.00/W
Fuel Cell Electric Only $0.60/W $1.20/W $0.50/W $1.10/W $0.40/W $1.00/W

Incentives for energy storage technologies per Watt-hour (Wh)

Energy Storage Step 1 Step 2 Step 3 Step 4 Step 5
Large Storage (>10 kW) $0.50/Wh $0.45/Wh $0.40/Wh $0.35/Wh $0.30/Wh
Large Storage Claiming ITC $0.36/Wh $0.31/Wh $0.26/Wh $0.21/Wh $0.16/Wh
Residential Storage (<=10 kW) $0.50/Wh $0.45/Wh $0.40/Wh $0.35/Wh $0.30/Wh
If the previous incentive step becomes fully subscribed within 10 calendar days across all Program Administrator territories, the incentive decline to the next step will be $0.10/Wh rather than $0.05/Wh.

Technical Eligibility Requirements

Generation Technologies 

Greenhouse Gas Emission Standards

The GHG eligibility factor is established based on the year in which the application is accepted. GHG eligibility for electric only systems is based on the First-Year Average factor. GHG eligibility for CHP systems is based on the ten year average factor. The ten-year average and first-year factors for years 2016 through 2020 are listed below.

SGIP GHG Eligibility Emissions Factors, kgCO2/MWh

Application Year 2016 2017 2018 2019 2020
10-Year Average 350 347 344 340 337
First-Year Average 334 332 329 325 321
Renewable Fuel Blending Requirements
All gas generation technologies are required to blend a minimum amount of renewable fuel beginning in 2017. The minimum percentage is determined by the year in which the application is accepted. The table below incorporates the minimum renewable fuel blending requirements by application year. 

Minimum Renewable Fuel Blending Requirement

Application Year % Renewable Fuel Required
2016 0%
2017 10%
2018 25%
2019 50%
2020 100%

Energy Storage Technologies 

Greenhouse Gas Emission Standards
Energy storage systems must maintain a round trip efficiency equal to or greater than 69.6% in the first year of operation in order to achieve a ten-year average round trip efficiency of 66.5%, assuming a 1% annual degradation rate.
Operational Requirements
Commercial systems are required to discharge a minimum of 130 full discharges per year. Residential systems are required to discharge a minimum of 52 full discharges per year. A “full discharge” is the equivalent of discharging the SGIP-incentivized energy capacity, whether it is during a single or multiple discharges.

Zip Code links for Los Angeles Department of Water and Power (LADWP) and the West Los Angeles (LA) Local Reliability Area

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