INCENTIVES & PROGRAMS
California’s Energy Storage Opportunities
California businesses are saving on their energy spend and increasing their energy resilience with Athena
Utility customers in California benefit from several programs to help deploy energy storage, including:
- Self-Generation Incentive Program
- Title 24 Solar and Storage Mandate
- Option S tariff in PG&E
- eMobility incentives
Self-Generation Incentive Program
California’s Self-Generation Incentive Program (SGIP) provides financial incentives to organizations for installing battery energy storage on-site. These incentives usually cover half or more of equipment and installation costs which supplements the 10-30% utility bill savings energy storage systems typically deliver. Energy storage can also provide several hours of backup power in the event of grid outages, which have become more common in California amid worsening heat waves and wildfires.
SGIP’s “General Market” incentive extends to any California business or organization that receives retail electric service from one of the state’s major investor-owned utilities (IOUs): Pacific Gas & Electric (PG&E), Southern California Edison (SCE), San Diego Gas & Electric (SDG&E), or Southern California Gas (SoCalGas). Incentive adders can be earned for deploying backup power systems at facilities that qualify for the SGIP “Resiliency” incentive. In all, more than $1 billion of SGIP funding has been authorized through 2024.
To qualify for Resiliency funds, facilities must 1) have experienced at least two Public Safety Power Shutoff (PSPS) events or be located in a high fire threat district (which includes more than half of California); and 2) be a “critical resilience facility,” defined as emergency responders, medical facilities, utilities, jails and prisons, emergency shelters designated by IOUs, homeless shelters, or food banks.
As an approved provider, Stem will operate your energy storage system to achieve required GHG reductions and maximize your SGIP performance incentive. Fill out the form to learn more.
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Title 24 Solar and Storage Mandate
Title 24 is California’s building energy code that affects all new construction within the state. The most recent update requires all new commercial and mixed-use developments to obtain a minimum required amount of solar PV and storage based on Climate Zone and conditioned floor area.
Stem has developed an easy-to-use Title 24 Calculator to help you determine your specifications for Title 24 and how to gain the most value out of this new requirement. When you share your results with Stem, we work with you to determine the best battery size for your building so you gain the most value. Click here to learn more about our Title 24 Calculator.
Option S Tariff in PG&E
Option S is a Pacific Gas & Electric (PG&E) tariff designed for customers with storage. Customers’ demand charges are split between a monthly demand charge and a daily demand charge. The daily demand charge, billed according to a customer’s daily peak demand, creates an additional cost savings opportunity for energy storage systems (ESS). Energy charges are consistent with those under PG&E’s solar-friendly Option R tariff.
Stem has helped reduce customers’ utility bills by 10-35% and generated a 30% return on investment (ROI) on the ESS. Option S is ideal for “peaky” loads over 400kW with low load factors. Examples of optimal load types include EV charging, aggregates and mining, heavy industrial, food processing, and arenas and event centers. Fill out the form to learn more.
eMobility Incentives
To comply with EV mandates and take advantage of available EV incentives, operators of commercial fleets are investing heavily in charging infrastructure. Stem and ENGIE North America have launched a combined offering that uses smart energy storage to help these organizations achieve their clean energy goals and maximize utility bill savings. Click here to learn more about our integrated solar + storage + EV charging solution.
Why Partner with Stem?
The application process for incentives and programs can be challenging to navigate. It can also be difficult to design effective storage systems that meet both organizational needs and incentive or program requirements – anything from standalone storage to complex solar + storage microgrids.
Stem is a global leader in AI-driven energy storage systems, with more than a decade of experience partnering with organizations and developers to realize hundreds of successful projects. We helped create California’s energy storage market and remain a leading storage provider to the state’s commercial and industrial (C&I) customers.
If you’re interested in capitalizing on California’s incentives and programs, contact Stem today. As a longtime storage pioneer and California market leader, our experts would be happy to answer your questions, help you determine which incentives you qualify for, and design an ESS that works for you.
Featured Case Study: Water Treatment Plant
Stockmans
This energy storage system, installed by Stockmans at a water treatment plant in San Bernardino County, California, will provide backup power in line with state resilience and climate goals. It will also provide significant utility bill savings by reducing the facility’s demand charges and shifting energy use to off-peak times.
Read More
System Size:
464kW / 1856kWh
Featured Resources
