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) 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.
- Eligible Hydrogen Sources Include:
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% |
Single-family residential project incentives are capped at 30 kWh.
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% |
Examples of projects with backup capability (or resiliency projects) include Equity Resiliency projects, projects claiming the resiliency adder or projects opting into resiliency operational requirements.
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:
Any project installing a qualifying generation technology behind the customer meter are eligible for the Generation Budget.
Customers eligible for the $2.50/W Resiliency Adder must meet the following criteria:
- a) Project site is located in a Tier 2 or Tier 3 HFTD; OR
b) Customers whose electricity was shut off during two or more discrete PSPS events prior to date of application for SGIP incentives. - a) Provides critical facilities or infrastructure to one or more communities in a Tier 2 or Tier 3 HFTD, a community with customers whose electricity was shut off during 2 or more discrete PSPS events prior to the date of application for SGIP incentives, or a community whose electricity was shut off during one discrete PSPS event and one de-energization or power outage from an actual wildfire AND
b) At least one of those communities is eligible for the Equity Budget. - Is one of the following critical facilities: Police stations, fire stations, emergency response providers or tribal government providers, emergency operations centers, 911 call centers, medical facilities including hospitals, skilled nursing facilities, nursing homes, blood banks, health care facilities, dialysis centers, and hospice facilities public and private gas, electric, water, wastewater, or flood control facilities, jails and prisons, locations designated by the IOUs to provide assistance during PSPS events, cooling centers, homeless shelters, grocery stores/markets with average annual gross receipts of $15 million or less, independent living centers, emergency feeding organizations.
All qualifying generation systems are expected to operate at the following capacity factors.
With the exception of wind turbines, all generation technologies are expected to operate at a capacity factor that aligns with the intended operation. Systems intended to operate to offset a customer's baseload generation needs are expected to operate at an 80% capacity factor. Systems intended to operate as a dispatchable generation resource to firm on-site renewables, provide peak load shaving, and/or support flexible load are expected to operate at a 15% capacity factor.
Residential Projects (single family or multifamily) are eligible for the Equity Resiliency Budget if they meet the following criteria:
- a) Project site located in a Tier 2 or 3 High Fire Threat District (HFTD); OR
b) Electricity was shut off during two or more Public Safety Power Shutoff (PSPS) events; OR
c) Electricity was shut off during one PSPS event, and one de-energization or power outage from an actual wildfire that occurred on or after January 1, 2017. AND - a) Multifamily or Single-Family projects eligible for the Equity Budget; OR
b) Medical baseline customer; OR
c) Notified electric utility of a serious illness or condition that could become life-threatening if electricity is disconnected; OR
Non-Residential Projects are eligible for the Equity Resiliency Budget if they meet the following criteria:
- a) Project site located in a Tier 2 or 3 High Fire Threat District (HFTD); OR
b) Electricity was shut off during two or more PSPS events;
- a) Provides critical facilities or infrastructure to a community in a Tier 2 or 3 HFTD, a community with customers whose electricity was shut off during 2 or more PSPS events, or a community whose electricity was shut off during one PSPS event and one de-energization or power outage from an actual wildfire that occurred on or after January 1, 2017.
b) Community is a disadvantaged (DAC) or low-income community or California Indian Country;
- Is one of the following critical facilities: Police station, fire station, emergency response providers or tribal government providers, emergency operation centers, 911 call centers, medical facilities including hospitals, skilled nursing facilities, nursing homes, blood banks, health care facilities, dialysis centers, and hospice facilities, public or private gas, electric, water wastewater, or flood control facilities, jails or prisons, locations designated by the Investor Owned Utilities to provide assistance during PSPS events, cooling centers, homeless shelters, grocery stores/markets with average annual gross receipts of $15 million or less, independent living centers, or a emergency feeding organization.
Single-family residential projects are eligible for the Equity Budget if they meet the following criteria:
- a) Household income is 80% of the area median income or less OR
b) Income verified through participation in SASH, DAC-SASH, CARE, FERA or ESA Programs.
Multifamily residential projects are eligible for the Equity Budget if they meet criteria 1and 2 or criteria 3:
- Multifamily residential building of at least five rental housing units that is operated to provide deed-restricted low-income residential housing; OR
- Located in a DAC (including Indian Country), or building where at least 80% of the households have incomes at or below 60% of the area median income; OR
- Reserved funds from the MASH or SOMAH programs.
Non-residential projects are eligible for the Equity Budget if they meet the following criteria:
- a) State/local/tribal government agency, educational institution, non-profit, or small business.
- a) Located in a DAC, tribal, or low-income community, or demonstrates that at least 50% of the census tracts it serves are DAC, tribal, or low-income communities; OR
b) Facility owned or operated by a public agency that provides services to DAC or low-income community members for which at least 50% of census tracts served are DACs or low-income communities.
Residential projects not eligible for the Equity Resiliency Energy Storage Budget or Equity Energy Storage Budgets may be eligible for the Small-Residential Energy Storage Budget.
Commercial projects not eligible for the Equity Resiliency Energy Storage Budget or Equity Energy Storage Budgets may be eligible for the Large-Scale Energy Storage Budget
Resiliency adder of $0.15/Wh is available for commercial Large-Scale Energy Storage projects that meet the requirements of the Equity Energy Storage Budget for non-residential projects except for the community being a DAC, low-income community, or California Indian Country.
Projects eligible for the Resiliency adder must meet the following criteria:
- a) Project site is located in a Tier 2 or 3 HFTD; OR
b) Customers whose electricity was shut off during two or more discrete PSPS events prior to date of application for SGIP incentives. AND - a) Provides critical facilities or infrastructure to one or more communities in a Tier 2 or 3 HFTD, a community with customers whose electricity was shut off during 2 or more discrete PSPS events prior to the date of application for SGIP incentives, or a community whose electricity was shut off during one discrete PSPS event and one de-energization or power outage from an actual wildfire AND
b) At least one of those communities is eligible for the Equity Budget. - Is one of the following critical facilities: Police stations, fire stations, emergency response providers or tribal government providers, emergency operations centers, 911 call centers, medical facilities including hospitals, skilled nursing facilities, nursing homes, blood banks, health care facilities, dialysis centers, and hospice facilities public and private gas, electric, water, wastewater, or flood control facilities, jails and prisons, locations designated by the IOUs to provide assistance during PSPS events, cooling centers, homeless shelters, grocery stores/markets with average annual gross receipts of $15 million or less, independent living centers, emergency feeding organizations.
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.