Self-Generation Incentive Program

This program provides financial incentives for the installation of new, qualifying self-generation equipment. In SDG&E’s service territory the CPUC approved program runs through January 1, 2012.

Background

  • California Assembly Bill 970, signed by Governor Davis on September 6, 2000 required the California Public Utilities Commission (CPUC) to initiate certain load control and distributed generation activities.
  • On March 27, 2001, the CPUC issued Decision 01-03-073, creating the statewide Self-Generation Incentive Program.
  • The Program was extended through December 31, 2007, in Decision 04-12-045 (codifying AB 1685).
  • Decision 08-01-029 further extended the Program through January 1, 2012 (codifying AB 2778).

2010 Incentives for Installation of Qualifying Equipment

Program participants are eligible to receive incentives under this program for installing self-generation technologies based on system type, size, fuel source and out-of-pocket costs.

Only commercially available and factory new equipment is eligible for incentives. Rebuilt or refurbished equipment is not eligible to receive incentives under this program. The maximum system size is 5 MW, although the incentive payment for 2008 through 2010 is capped at 3 MW.

Incentive Levels

Eligible Technologies 1

Incentive Offered ($/Watt)

Minimum
System Size

Maximum
System size 2

Maximum
Incentive Size

Level 2
Renewable

Wind Turbines

$1.50

30 kW

5 MW

1 MW

Renewable Fuel Cells

$4.50

30 kW

5 MW

1 MW

Level 3
Non-Renewable

Non-Renewable Fuel Cells 3

$2.50

None

5 MW

1 MW

Advanced Energy Storage

Coupled with eligible self generation technology and four hour discharge period at rated capacity

$2.00

None

5 MW

1 MW

1 An additional incentive of 20% will be provided for the installation of eligible Distributed Generation (DG) technologies from a California Supplier

2 Maximum system size is 5.0 MW, however, output capacity above the first 1.0 MW is not eligible for incentives.

3 System must utilize waste heat recovery meeting Public Utilities Code 216.6

For projects that are greater than 1 MW up to 3 MW, the incentives identified above decline according to the schedule below:

Capacity

Incentive rate (Percentage of Base)

0 MW - 1 MW

100%

> 1 MW - 2 MW

50%

> 2 MW - 3 MW

25%

Program Administrator

The California Center for Sustainable Energy (CCSE) is designated as program administrator in SDG&E’s service territory. For more information and to apply to the program contact the CCSE’s Self Generation Incentive Program Resource Center

Project Costs As of February 2010

The Self-Generation Incentive Program Working Group has compiled a list of all statewide Self-Generation Incentive Program systems.

The list includes data on a project specific basis and is aggregated for the following companies:

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