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California Extends Self-Generation Incentive Scheme

California Governor Jerry Brown’s (in the picture) signing of SB700, which extends the state's Self-Generation Incentive Program by another 5 years, is expected to lead to more than 2.5 GW of total behind-the-meter storage systems capacity by 2026, according to CALSSA. (Photo Credit: State of California)

Anu Bhambhani
  • California has extended the term of its Self-Generation Incentive Program (SGIP) by another five years
  • This step will boost behind-the-meter energy storage deployments in the state
  • CALSSA expects over 2.5 GW of total storage installations by the year 2026 in the entire state, expecting the extension to add up to $800 million for storage and other emerging clean energy technologies for an investment of $1.2 billion

California's Governor Jerry Brown by official approval extended the state's Self-Generation Incentive Program (SGIP) by five years. It was earlier set to expire in 2020. The Senate Bill (SB) 700 will continue to be administered by the California Public Utilities Commission (CPUC) and help in behind-the-storage deployments. It will come into effect from January 1, 2019.

The program provides rebates for qualifying distributed energy systems that includes solar PV and advanced energy storage systems among others. Since its implementation, SGIP has paid over $140 million in incentives for 85 MW of installed storage projects, according to California Solar & Storage Association (CALSSA). Another $190 million are reserved for pending projects that will add over 230 MW and another $130 million will remain in unreserved funds.

The entity estimates 2.5 GW or more of total behind-the-meter energy storage systems to be added by 2026 under SB700 at schools, farms, homes, non-profits and businesses in the state by 2026. Over the next 8 to 10 years, these systems will be connected to solar panels to ensure the 'sun shine at night'.

Executive Director of CALSSA, Bernadette Del Chiaro explained that the extension of the program will add up to $800 million for storage and other emerging clean energy technologies leading to a total investment of $1.2 billion for customer sites energy storage.

While Brown signed SB 700 on Sept. 27, earlier that month California approved SB100 into a law that sets the state on path to achieve 100% clean energy. Governor Brown also mandated an executive order for carbon neutrality by 2045 (see California Confirms 100% Clean Energy Target).