Self-Generation Incentive Program

March 10, 2023


Note: A.B. 209 of 2022 extended eligibility for this program to residential solar photovoltaic systems paired with energy storage systems. The CPUC will need to develop rules before these new incentives are available. 

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. 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 extended the expiration date to January 1, 2016, and SB 861 of 2015 further extended the expiration date to January 1, 2021. The program was later extended through January 1, 2026. 

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): 

Generation Technologies as of October 2022:

  • Wind turbines: $2.00/W
  • Other Generation: $2.00/W
  • Max Biogas Adder: $0.60/W

Storage Technologies as of October 2022:

  • Large Scale Storage Not Claiming ITC: $0.25/Wh - $0.30/Wh depending on utility
  • Large Scale Storage Claiming ITC: $0.18/Wh - $0.22/Wh depending on utility
  • Small Residential Storage: $0.15/Wh - $0.20/Wh depending on utility
  • Residential Storage Equity: $0.85/Wh 
  • Non-Residential Storage Equity: $0.85/Wh  
  • Equity Resiliency: $1.00/Wh  

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 $1.73/W. An additional incentive of 20 percent will be provided for the installation of eligible distributed generation or advanced energy storage technologies produced by California supplier. 

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

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: California
Incentive Type: Rebate Program
Web Site:
Administrator: California Public Utilities Commission
Start Date:
Eligible Renewable/Other Technologies:
  • Solar Photovoltaics
  • Wind (All)
  • Combined Heat & Power
  • Fuel Cells using Non-Renewable Fuels
  • Wind (Small)
  • Fuel Cells using Renewable Fuels
  • Lithium-ion
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.
Incentives will step down over time. See below for incentive amounts.
Maximum Incentive: $5 million, or 60% of eligible project costs, whichever is less.
Incentive payment is capped at 3 MW.
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.
Installation Requirements: Installation must comply with all federal, state, and local codes; Must be grid-connected and installed by a California-licensed contractor.
Ownership of Renewable Energy Credits: Remains with customer/producer


This program has 3 incentives
Technologies: Wind (All), Wind (Small)
Sectors: Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Federal Government, Institutional
Parameters: The incentive is 0.90 $/W, The incentive has a minimum of $1000000.00
Technologies: Combined Heat & Power
Sectors: Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Federal Government, Institutional
Parameters: The incentive is 0.60 $/W, The incentive has a minimum of $1000000.00
Technologies: Fuel Cells using Non-Renewable Fuels, Fuel Cells using Renewable Fuels
Sectors: Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Federal Government, Institutional
Parameters: The incentive is 0.60 $/W, The incentive has a minimum of $1000000.00


Name: Self-Generation Incentive Program Handbook (2017)
Name: Cal Pub Util Code § 379.6


Name: Neal Reardon
Organization: CPUC
Address: Ariel Rios Building
Washington DC 20460
Phone: (202) 260-2090

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.