Battery energy storage helps many types of California organizations – including schools and universities, hospitals, manufacturers, retailers, and municipalities, to name a few – save on utility bills and avoid power outages.
A California program, the “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 – and that’s over and above the 10-30% utility bill savings energy storage systems typically deliver.
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). In all, more than $1 billion of SGIP funding has been authorized through 2024.
The largest incentives are provided to facilities that qualify for SGIP’s “Equity Resiliency” program. Customers who qualify can increase their incentive payout by up to 3X, which can pay the full cost of a new battery system including installation.
To qualify for Equity 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); 2) serve disadvantaged or low-income communities; and 3) be a “critical facility” such as:
SGIP is available to retail customers of the major California IOUs: Pacific Gas & Electric (PG&E), Southern California Edison (SCE), San Diego Gas & Electric (SDG&E), and Southern California Gas (SoCalGas). This puts energy storage incentives within reach of most California businesses.
Energy storage systems typically deliver 10-30% savings on businesses’ utility bills. They 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 incentivizes technologies that benefit customers and the grid and help reduce California GHG emissions. As an approved provider, Stem will operate your energy storage system to achieve required GHG reductions and maximize your SGIP performance incentive.
The SGIP application process can be challenging to navigate. It can also be difficult to design effective backup power systems that meet both organizational needs and SGIP 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 SGIP incentive, 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
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
464kW / 1856kWh