Customer-Sited Energy Storage

In conjunction with its directive amplifying certain components of energy storage solicitation requirements, the California Public Utilities Commission also announced that the state's Self-Generation Incentive Program (SGIP) has been successfully relaunched amidst heavy customer demand for program incentives, particularly with regard to energy storage projects. 

A total of $50 million was awarded in the initial step, which monies went to (1) projects that pair storage with solar energy, (2) projects that help offset the impact of reduced storage at the Aliso Canyon Natural Gas Storage Facility, and (3) projects in disadvantaged communities.

According to the commission, the SGIP is one of the nation's longest-running programs offering incentives for customer investments in clean, distributed energy resources. It provides rebates to support energy resources installed on the customer side of the utility meter, inclusive of such facilities as wind turbines, waste heat to power technologies, pressure reduction turbines, internal combustion engines, microturbines, gas turbines, fuel cells, and energy storage systems. The program is funded by the ratepayers of Pacific Gas & Electric Company, Southern California Edison Company, San Diego Gas & Electric Company, and Southern California Gas Company.

The commission related that in June 2016, it set the SGIP budget at more than $270 million through 2019. Also, to maximize the value of ratepayer incentives and to create more equitable distribution of funds, the commission had instituted a lottery system for selecting projects, which replaced a first-come, first-served approach. The commission said it later increased the total SGIP budget to more than $500 million through 2019. It noted that nearly 80% of that budget is earmarked for energy storage projects, with more than $100 million of funds for energy storage projects planned to be made available in June 2017 alone.