California is already the leading state in the country with more solar capacity than any other state in the U.S. With SGIP (Self-Generation Incentive Program), the Golden State is becoming the leader in energy storage, as well. SGIP provides rebates to all homeowners who install batteries.
Established in 2001, SGIP supports a variety of technologies installed in homes and businesses, including fuel cells, energy storage and combined heat and power generators. Until recently, the entire process of getting a home battery rebate through SGIP was quite complicated, especially for homeowners. However, SGIP made changes in the program for residential customers, so as to promote major incentives for CA home batteries.
Homeowners with energy storage in California will benefit from SGIP. People who are customers of PG&E, SCE, SCG, or SDG&E will be eligible for an incentive of $400 per kilowatt-hour (kWh) when a home battery is installed. This will cover the majority of the battery cost.
The value of the per-kWh incentive depends on the size of the battery and will be reduced in the future as more battteries are installed. Make sure you consider adding battery storage before this incentive diminishes!.
In the past, maximum funds were used for fuel cells and other forms of energy production. Currently, more than $62 million will be dedicated specifically to energy storage every year. In addition, 15% of the funds will be marked specifically for residential applications, ensuring that homeowners can more affordably install batteries with their solar systems.
In early 2016, California approved Net Metering 2.0 (NEM 2.0), which means that all new solar customers must switch to time-of-use (TOU) rates. If a homeowner has TOU rates for electricity, the cost of one kWh will vary depending on the time of day. By installing a home battery with the solar panel system, the homeowners will be able to store the excess solar power at home when utility rates are low and use it when rates are high.
For this program, Governor Brown signed SB 700, which added approximately $800 million in additional funding for SGIP and extend the program through 2025.