This program can reduce the price of a typical battery install by 25%, with additional value for qualifying homeowners
Adding battery storage to your residential solar install is a great way to get more value out of going solar, and analysts have recognized the potential of battery storage to help communities go green and reduce stress on utility grids. Policies promoting battery storage might be the next big trend in government clean energy initiatives – but with its long-standing reputation as one of the most forward-thinking states on clean energy, it’s not surprising that California was ahead of the curve.
California’s Self-Generation Incentive Program (SGIP) actually dates back all the way to 2001. It provides incentives for utility customers to generate their own energy through a variety of means, from wind turbines to devices that generate power from waste heat – but for solar customers, it can make adding battery storage much more affordable.
All residential customers of Pacific Gas and Electric Company (PG&E), Southern California Edison (SCE), Southern California Gas Company (SoCalGas), and San Diego Gas & Electric (SDG&E) are eligible for a “General Market” energy storage rebate under SGIP. There are also two other categories called “Equity” and “Equity Resiliency” which offer more valuable rebates for customers who meet certain criteria, such as those living in “disadvantaged communities” or those who have medical conditions requiring equipment that must stay on during a utility outage.
The value of the incentive is based on the capacity of your storage. The General Market rebate is worth approximately $250 per kilowatt-hour of storage you install. Those in the Equity categories can get $850 or even $1000 per kilowatt-hour of storage, although the eligibility requirements for these categories are much more strict. It’s important to note that homeowners receive the rebate after the system is installed, so you can’t necessarily plan to get your battery system for a reduced or eliminated initial out-of-pocket cost. Still, even the General Market rebate can cover around one quarter of the price of a typical residential battery system once the install is complete – easily enough to be a game-changer for many homeowners considering whether adding batteries makes financial sense for them.
If you’re a California homeowner considering going solar, or if you’re already enjoying the benefits of solar and wondering whether it’s worth it to add a battery system, one of our Zenernet energy consultants can help you understand whether solar and battery storage is right for you and how to apply for the SGIP and other money-saving incentives. If you want to make sure you don’t miss any of our coverage of incentive programs and government solar policy in California and across the country, follow us on social media.