California Center for Sustainable Energy

CCSE has announced the reopening of a program that rewards utility customers for installing clean energy systems with funding for more than $10 million in projects for the San Diego region. The Self-Generation Incentive Program, or SGIP, provides rebates for a wide range of sustainable energy technologies that can save energy, shrink utility costs and reduce greenhouse gas emissions.

The SGIP is a statewide initiative of the California Public Utilities Commission ( CPUC) designed to promote power generation by utility customers, from wind turbines and fuel cells to cogeneration systems and advanced energy storage. Its purpose is to help achieve state energy goals of generating one-third of California’s electricity from renewable sources and reducing greenhouse gas emissions to 1990 levels by 2020. CCSE administers SGIP in the San Diego Gas & Electric service area.

In existence since 2001, SGIP was originally aimed at increasing customer generation to reduce peak energy demand loads. The CPUC recently revised the program, modifying eligibility criteria, incentive amounts and payment structures for eligible technologies. The current program goals are based on greenhouse gas ( GHG) emissions reductions, funding technologies that include wind turbines, fuel cells, organic rankine cycle/waste heat capture, pressure reduction turbines, advanced energy storage and combined heat and power gas turbines, microturbines and internal combustion engines. There are additional incentives for systems that operate on biofuels, such as methane produced from plant biomass or treated municipal and industrial waste.

CPUC President Michael Peevey stated, "This decision represents a team effort between the California Air Resources Board and the CPUC . . . It is wise to look at renewable energy not only as a means to reduce the need for construction of additional power plants but also a means to reduce our greenhouse gas emissions.”

Incentive payments to SGIP participants benefit all ratepayers by reducing the need for utilities to invest in expensive transmission and distribution infrastructure. Any class of customer – industrial, agricultural, commercial or residential – is eligible to participate in SGIP. Utility ratepayers fund the program, and this revision extends the program through January 2016.

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