Self-Generation Incentive Program (California)

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Last modified on February 12, 2015.

Financial Incentive Program

Place California

Name Self-Generation Incentive Program
Incentive Type State Rebate Program
Applicable Sector Commercial, Industrial, Residential, Nonprofit, Schools, Local Government, State Government, Fed. Government, Institutional
Eligible Technologies CHP/Cogeneration, Wind, Fuel Cells, CHP/Cogeneration, Fuel Cells using Renewable Fuels
Active Incentive Yes
Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs, Energy Efficiency Incentive Programs
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: 1.13/W
Waste Heat to Power: 1.13/W
Pressure Reduction Turbine: 1.13/W
Internal Combustion Engine (CHP): 0.46/W
Microturbine (CHP): 0.46/W
Gas Turbine (CHP): 0.46/W
Advanced Energy Storage: 1.62/W
Biogas: 1.62/W
Fuel Cell (CHP or Electric Only): 1.83/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.
Start Date 2001
Expiration Date 2016-01-01

Installation Requirements Installation must comply with all federal, state, and local codes; Must be grid-connected and installed by a California-licensed contractor.

Maximum Incentive 5 million, or 60% of eligible project costs, whichever is less.

Incentive payment is capped at 3 MW.

Ownership of Renewable Energy Credits Remains with customer/producer

Program Budget Available Funds as of 03/2014:
PG&E: $47.9 million;
SCE: $94.7 million;
So Cal Gas: $14.9 million;
SDG&E: $35.1 million

Program Administrator California Public Utilities Commission

References DSIREDatabase of State Incentives for Renewables and Efficiency[1]


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 2014, the incentive payments range from $0.46/W - $1.83/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 - $1.13/W
  • Waste Heat to Power - $1.13/W
  • Pressure Reduction Turbine - $1.13/W

Nonrenewable Conventional CHP:

  • Internal Combustion Engine (CHP) - $0.46/W
  • Microturbine (CHP) - $0.46/W
  • Gas Turbine (CHP) - $0.46/W

Emerging Technologies

  • Advanced Energy Storage - $1.62/W
  • Biogas - $1.62/W
  • Fuel Cell - CHP or Electric Only - $1.83/W

The biogas incentive is an adder and may be used in conjunction with fuel cells or any conventional CHP technology. For example, a gas turbine that uses biogas is eligible for an incentive of $2.08/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 incentive. 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)
Phone: 415-973-6436
Fax: (415) 973-2510
Mailing Address: Self-Generation Incentive Program
P.O. Box 770000
Mail Code B27P
San Francisco, CA 94177-001

Center for Sustainable Energy (CSE)
Phone: (858) 244-1177
Fax: (858) 244-1178
Address: Center for Sustainable Energy
Attn: SELFGEN Program
9325 Sky Park Court, Suite 100
San Diego, CA 92123

Southern California Edison (SCE)
Phone: 1-866-584-7436
Fax: (626) 302-6132
Address: Program Manager Self-Generation Incentive Program
Southern California Edison
1515 Walnut Grove Avenue
Rosemead, California 91770

Southern California Gas Company (SoCalGas)
Phone: 1-866-347-3228
Fax: (213) 244-8222
Address: Self-Generation Incentive Program Administrator
Southern California Gas Company
555 West Fifth Street, GT22H4
Los Angeles, CA 90013-1011

Incentive Contact

Contact Name James Loewen
Department California Public Utilities Commission
Division Los Angeles Office
Address 320 West 4th Street, Ste. 500
Place Los Angeles, California
Zip/Postal Code 90013
Phone (213) 620-6341


Authorities (Please contact the if there are any file problems.)

Authority 1: Cal Pub Util Code § 379.6

Authority 2: SB 412
Date Effective 2010-01-01
Date Enacted 2009-10-11

Authority 3: Self-Generation Incentive Program Handbook (2014)

  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency" Cite error: Invalid <ref> tag; name "DSIRE" defined multiple times with different content