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Self-Generation Incentive Program

Last Review: 2013-03-04
Incentive Type: State Rebate Program
Eligible Efficiency Technologies: CHP/Cogeneration, Wind, Fuel Cells, CHP/Cogeneration, Fuel Cells using Renewable Fuels
Applicable Sectors: Commercial
Incentive Amount: For projects 30 kW or larger, 50% of incentive will be received up-front; 50% will be received based on actual kWh production over the first 5 years. For projects under 30kW, 100% of the incentive will be paid up front.

Wind: 1.19/W
Waste Heat to Power: 1.19/W
Pressure Reduction Turbine: 1.19/W
Internal Combustion Engine (CHP): 0.48/W
Microturbine (CHP): 0.48/W
Gas Turbine (CHP): 0.48/W
Advanced Energy Storage: 1.80/W
Biogas: 1.80/W
Fuel Cell (CHP or Electric Only): 2.03/W

An additional incentive of 20 percent will be provided for the installation of eligible distributed generation or Advanced Energy Storage technologies from a California Supplier.
For projects with capacities greater than 1 MW, the first 1 MW receives 100% of the incentive rate, the next capacity increment above 1 MW up to 2 MW receives 50% of the incentive rate, while the last capacity increment above 2 MW up to 3 MW receives 25% of the incentive rate.
Eligible System Size: Systems must be sized according to customer's electricity demand; wind turbine projects may be sized up to 200% of the previous 12 month annual peak demand
Equipment Requirements: Systems must be new, and in compliance with all applicable performance and safety standards. Wind systems, fuel cells and advanced energy storage systems must be covered by a minimum ten year warranty. The warranty must protect against the breakdown or degradation in electrical output of more than ten percent from the originally rated electrical output. The warranty should cover all replacement and labor costs.
Expiration Date: 1/1/2016
Website: http://www.cpuc.ca.gov/PUC/energy/DistGen/sgip/index.htm


Initiated in 2001, the Self-Generation Incentive Program (SGIP) offers incentives to customers who produce electricity with wind turbines, fuel cells, various forms of combined heat and power (CHP) and advanced energy storage. For 2013, the incentive payments range from $0.48/W - $2.03/W depending on the type of system. Retail electric and gas customers of San Diego Gas & Electric (SDG&E), Pacific Gas & Electric (PG&E), Southern California Edison (SCE) or Southern California Gas (SoCal Gas) are eligible for the SGIP. Beginning in May 2012, all technologies previously eligible for the expired Emerging Renewables Program are now eligible for the SGIP program. Originally set to expire at the end of 2011, SB 412 of 2009 amended the Public Utilities Code to allow incentives to be available through January 1, 2016. Any program funding remaining after January 1, 2016 must be returned to the utilities to reduce ratepayer costs.

Systems less than 30 kW will receive their full incentive upfront. Systems with a capacity of 30 kilowatts (kW) or greater will receive half the incentive upfront, and the the other half will be paid over the following five years based on the actual performance. The following technologies will receive the corresponding upfront incentive (or half of this figure if the system is 30 kW or larger): 

Renewable and Waste Heat Capture:

  • Wind turbines - $1.19/W
  • Waste Heat to Power - $1.19/W
  • Pressure Reduction Turbine - $1.19/W

Conventional CHP:

  • Internal Combustion Engine (CHP) - $0.48/W
  • Microturbine (CHP) - $0.48/W
  • Gas Turbine (CHP) - $0.48/W

Emerging Technologies

  • Advanced Energy Storage - $1.80/W
  • Biogas - $1.80/W
  • Fuel Cell - CHP or Electric Only - $2.03/W

There is no minimum or maximum eligible system size, although the incentive payment is capped at 3 MW. Further, the first megawatt (MW) in capacity will receive 100% of the calculated incentive, the second MW will receive 50% of the calculated incentive, and the third MW will receive 25% of the calculated amount. Applicants must pay a minimum of 40% of eligible project costs (the biogas adder is not included in calculating the limit). Projects using the Federal Investment Tax Credit (ITC) must pay 40% of the eligible project costs after the ITC is subtracted from the project costs (i.e., the SGIP credit is limited to 30% of project costs).

PG&E, SCE, and SoCal Gas administer the SGIP program in their service territories, and the California Center for Sustainable Energy administers the program in SDG&E's territory. Customers of PG&E, SDG&E, SCE and SoCal Gas should contact their program administrator for an application, program handbook and additional eligibility information.

Program Administrator Contact Information:

Pacific Gas & Electric (PG&E)
Web: http://www.pge.com/mybusiness/energysavingsrebates/selfgenerationincentive/index.shtml
Phone: 415-973-6436
Email: selfgen@pge.com
Fax: (415) 973-2510
Mailing Address: Self-Generation Incentive Program
P.O. Box 770000
Mail Code B27P
San Francisco, CA 94177-001

California Center for Sustainable Energy (CCSE)
Web: http://energycenter.org/sgip
Phone: (858) 244-1177
Fax: (858) 244-1178
Email: sgip@energycenter.org
Address: California Center for Sustainable Energy
Attn: SELFGEN Program
8690 Balboa Ave, Suite 100
San Diego, CA 92123

Southern California Edison (SCE)
Web: http://www.sce.com/b-rs/sgip/self-generation-incentive-program.htm
Phone: 1-866-584-7436
Fax: (626) 633-3402
Email: CSIGroup@sce.com
Address: Program Manager Self-Generation Incentive Program
Southern California Edison
2131 Walnut Grove Avenue, 3rd Floor, B 10
Rosemead, California 91770

Southern California Gas Company (SoCalGas)
Web: http://www.socalgas.com/innovation/self-generation/
Phone: 1-866-347-3228
Email: selfgeneration@socalgas.com
Fax: (213) 244-8222
Address: Self-Generation Incentive Program Administrator
Southern California Gas Company
555 West Fifth Street, GT22H4
Los Angeles, CA 90013-1011

Ehren Seybert
California Public Utilities Commission
505 Van Ness Avenue

San Francisco, CA 94102
Phone:(415) 703-5991 Ext.
Phone 2:()
Email: Ehren.Seybert@cpuc.ca.gov
Web site:


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