New SGIP Decision Targets Resiliency, Disadvantaged Communities

The California Public Utilities Commission (CPUC) issued Decision 19-09-027 this week extending authorized funding for the Self-Generation Incentive Program (SGIP) and setting new priorities to ensure that the program benefits low income communities. Initiatives supported by the decision include:

• A new $100 million resiliency program to support installation of energy storage devices that provide electricity in Tier 2 and 3 high fire threat districts when high wildfire risk factors trigger public safety power shut-offs (PSPS). Targeted program participants will include vulnerable households, critical service facilities, and low-income solar program customers.
• Increased funding for the SGIP energy storage “equity budget” – funding earmarked for disadvantaged and low-income customers throughout California.
• Expansion of equity budget eligibility to include California Indian Lands, automatic eligibility to participants in the existing Single Family Affordable Solar Homes (SASH) program, the SASH for Disadvantaged Communities Program (DAC-SASH), the Solar on Multifamily Affordable Housing (SOMAH) program, and the Multifamily Affordable Solar Housing (MASH) program.
• Allocations for heat pump water heater incentives and storage pilots in 11 San Joaquin Valley disadvantaged communities.

Decision 19-09-027 also addresses program incentive levels, technology eligibility requirements, and funding allocation adjustments. The next phase of the SGIP proceeding will implement annual ratepayer collections to fund the SGIP program for five years (2020-2024), as provided in Senate Bill 700. The SGIP program was established in 2001, and this week’s decision follows the CPUC’s long-established practice of periodically adjusting funding categories, eligibility requirements, and budget allocation to include new technologies and reflect state energy procurement and environmental policy goals.

Ellison Schneider Harris & Donlan attorneys assist customers and eligible technology providers with SGIP applications and questions. For more information about SGIP or other CPUC incentive programs, contact Lynn Haug or Samantha Neumyer.