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PUC (Public Utilities of California) has decided to increase the SGIP (Self – Generation Incentive Program) incentive. This incentive is available for residential and commercial solar production and storage projects. There are stipulations, categories constraints, and rounds of funding but at the top level $249 Million MORE will be available to “distributed generation resources to reduce peak energy demand”.
Historically this commission has funded Large scale solar PV projects, Fuel cell systems, residential Rooftop solar, and energy storage at all levels. Last year the funds for storage was suspended due to insufficient information regarding how the funds – and installed systems thereof- were impacting the electric grid. The commission has regenerated the incentive with new bounds on the distribution across different technology sectors, and “developer caps”. Here developers are large scale industry participants such as SUNRUN, Robert Busch LLC, and SolarCity (now Tesla).
The 249 Million dollars will be awarded in categories energy storage/generation with fund split 85%/15% respectively – after the 7% administrative cost are removed. That breaks down as $196.8M and $34.7M for storage and generation respectively – Keep in mind this is the increase on the existing incentive. The incentive total is $461.2M, with $399.4M and $61.7M going specifically to storage and generation respectively over the next 3 years.
The new funds will be allocated in steps – 5 steps in total. The negotiation is in works on how the funds will be steps allocated within said steps. The running plan is Energy generation funds will be evenly distributed between steps 2,3, and 4. The storage funds will spread across all 5 steps have a stepped percentage function 0, 15, 30, 30, 25 respectively.
The funds will be available to different sub categories of project. 15% of the energy storage budget will be reserved for projects 10kW or less. The developer cap is set at 20% - stating that any ONE developer can not receive funding for 20% or more of a total category. The policy also makes adjustment for projects that receive for the Federal Income Tax Credit such that the total funding is limited to 30% of project cost.
Also because the utilities are the only logical program administrators each group of funds will be split evenly between the program administrators, PG&E, SCEC, CSE, and SCGC according to usage. There is an additional CA Manufacturer adder which allows for a 20% adder if 50% of the capital equipment is manufactured in California. Each manufacturer must apply to be qualified by June 23rd, 2017.
The facts and figures given here are still subject to change. This article is written based on the Decision Revising Assembly Bill 1637. This bill will be revised after the tier 2 advice letter from the Program Administrators (PG&E, SCE, ect.), and then the after a round of voting by California legislators.
The CPUC website and all information can be found here. There you can find the full explanation of the Residential Storage program can be found and a SGIP PowerPoint with program outlines is given as “Quarterly SGIP Workshop…Slides”.
Historically this commission has funded Large scale solar PV projects, Fuel cell systems, residential Rooftop solar, and energy storage at all levels. Last year the funds for storage was suspended due to insufficient information regarding how the funds – and installed systems thereof- were impacting the electric grid. The commission has regenerated the incentive with new bounds on the distribution across different technology sectors, and “developer caps”. Here developers are large scale industry participants such as SUNRUN, Robert Busch LLC, and SolarCity (now Tesla).
The 249 Million dollars will be awarded in categories energy storage/generation with fund split 85%/15% respectively – after the 7% administrative cost are removed. That breaks down as $196.8M and $34.7M for storage and generation respectively – Keep in mind this is the increase on the existing incentive. The incentive total is $461.2M, with $399.4M and $61.7M going specifically to storage and generation respectively over the next 3 years.
The new funds will be allocated in steps – 5 steps in total. The negotiation is in works on how the funds will be steps allocated within said steps. The running plan is Energy generation funds will be evenly distributed between steps 2,3, and 4. The storage funds will spread across all 5 steps have a stepped percentage function 0, 15, 30, 30, 25 respectively.
The funds will be available to different sub categories of project. 15% of the energy storage budget will be reserved for projects 10kW or less. The developer cap is set at 20% - stating that any ONE developer can not receive funding for 20% or more of a total category. The policy also makes adjustment for projects that receive for the Federal Income Tax Credit such that the total funding is limited to 30% of project cost.
Also because the utilities are the only logical program administrators each group of funds will be split evenly between the program administrators, PG&E, SCEC, CSE, and SCGC according to usage. There is an additional CA Manufacturer adder which allows for a 20% adder if 50% of the capital equipment is manufactured in California. Each manufacturer must apply to be qualified by June 23rd, 2017.
The facts and figures given here are still subject to change. This article is written based on the Decision Revising Assembly Bill 1637. This bill will be revised after the tier 2 advice letter from the Program Administrators (PG&E, SCE, ect.), and then the after a round of voting by California legislators.
The CPUC website and all information can be found here. There you can find the full explanation of the Residential Storage program can be found and a SGIP PowerPoint with program outlines is given as “Quarterly SGIP Workshop…Slides”.
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