Understanding
SGIP
California’s Self-Generation Incentive Program can cover up to 100% of your solar and battery storage installation — if you know which program you qualify for.
The Self-Generation Incentive Program (SGIP) is a financial rebate program created by the California Public Utilities Commission (CPUC). It was designed to encourage homeowners and businesses to install distributed energy resources — mainly battery storage systems — on their own property. The goal is clear: reduce greenhouse gas emissions, strengthen grid reliability, and help Californians stay powered during outages.
Why Does SGIP Matter?
California faces a dual challenge: increasing wildfire-related power shutoffs (PSPS events) and a growing need to transition to clean energy. SGIP directly addresses both by putting financial incentives in the hands of everyday residents and businesses. Depending on which program you qualify for, SGIP can cover anywhere from 15% to 100% of your installation cost.
The program is administered by California’s major utilities — PG&E, Southern California Edison (SCE), SDG&E, SoCalGas, and LADWP — each serving their respective territories.
Which SGIP Program Is Right for You?
SGIP has multiple budget categories. For residential customers, there are three main programs — each with a different eligibility level and incentive amount. Let’s break them down.
Residential Solar & Storage Equity (RSSE)
This is the most generous SGIP program ever offered. It targets low-income households and can potentially cover 100% of installation costs when combined with federal tax credits. This program launched June 2025 and has limited funding — so acting quickly is essential.
Who qualifies?
- Must be a residential customer of one of the four major CA utilities (PG&E, SCE, SDG&E, SoCalGas)
- Household income must be at or below program income limits (documentation required)
- Single-family homeowners must provide proof of income eligibility
- Multifamily buildings must have at least 5 rental units and qualify as low-income or disadvantaged community housing
- System must include both solar panels and battery storage
Equity Resiliency Budget
This program is designed specifically for communities that have already experienced utility shutoffs due to wildfires or PSPS events. It provides battery storage incentives to give these households a reliable backup power source.
Who qualifies?
- Community must have experienced 2 or more PSPS events prior to application date
- OR experienced 1 PSPS event + 1 wildfire-related outage occurring after January 1, 2017
- Must also qualify under the Equity Budget (low-income or disadvantaged community)
- Solar panels are NOT required — battery storage only is eligible
- Must be a customer of one of the major CA utilities
Small Residential Energy Storage (General Market)
No income requirements, no location restrictions. This is the general market option — available to any residential customer of a qualifying California utility who wants to install a battery storage system. While the incentive is smaller, it’s the most accessible program.
Who qualifies?
- Must be a residential customer of PG&E, SCE, SDG&E, SoCalGas, or LADWP
- No income or location requirement — open to all
- Battery storage system only — solar panels are not required
- System capacity is capped at 30 kWh for the incentive calculation
Requirements That Apply to Every Program
Regardless of which SGIP program you qualify for, all participants must meet these baseline obligations to receive and keep their incentive.
How Are SGIP Incentives Paid Out?
The payment structure depends on whether your project is residential or non-residential:
🏠 Residential Systems
Receive a one-time, up-front payment — either by check or wire transfer — once the project is complete and the site has been verified by the Program Administrator.
🏢 Non-Residential Systems
Receive 50% upfront upon project completion and 50% over five years, based on the actual measured performance of the system.
How to Apply for SGIP
The application process requires working with a registered SGIP Developer (your installer or energy company) who submits the reservation on your behalf through the official portal.
Identify which SGIP budget category applies to you based on your income, location, and utility. Contact your Program Administrator if unsure.
Work with an installer who is registered as an approved SGIP Developer. You can verify their status at selfgenca.com.
Your Developer submits the reservation application through the SGIP Online Portal before installation begins. Funds are allocated on a first-come, first-served basis.
Once the reservation is confirmed, you have one year to install the system and complete the utility interconnection process.
After installation, inspection, and interconnection, your Developer files the claim. The incentive is then issued to the customer.
Let’s Find the Right Program for You
Every home and situation is different. Our team can help you determine which SGIP program you qualify for and guide you through the entire application process.
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