​2018 Legislature Wrap-Up: Self-Generation Incentive Program Extended With More Funding for Energy Storage

The California Legislature has extended funding for California’s successful Self-Generation Incentive Program (SGIP) through 2024, enabling continued support for clean distributed energy technologies and behind-the-meter energy storage. The SGIP program changes authorized by SB 700 are few, but significant for companies interested in this distributed energy rebate program.

First, and most significantly, SB 700 extends the duration of the program until January 1, 2026, and authorizes continued funding of the program through December 31, 2024. These assurances are expected to provide much-necessary regulatory security to project developers and support continued interest in the program by customers considering deployment of on-site fuel cells and energy storage systems.

Second, SB 700 requires the CPUC to adopt eligibility requirements for energy storage systems to ensure that they reduce greenhouse gases. This requirement reflects the program’s increased focus on funding energy storage, and the program’s goal of contributing to California’s effort to reduce GHG emissions.

Third, SB 700 provides that funding for projects using non-renewable fuels will end after January 1, 2020. Currently the program includes natural gas-fueled fuel cells, provided they meet program requirements and demonstrate GHG reduction benefits. This change will phase out non-renewable fuel cells, but continue program support for fuel cells using renewable biogas.

SB 700 will become effective January 1, 2019. The California Public Utilities Commission, which oversees the SGIP program, is expected to initiate proceedings in the near future to implement program modifications approved in SB 700. For more information about SB 700, the California SGIP program, or the fuel cell and storage technologies supported by SGIP, please contact ESHD attorneys Lynn Haug or Jed Gibson at 916-447-2166.