California's Self-Generation Incentive Program Summary

San Diego Gas & Electric Incentive Programs

There are two incentive programs available to SDG&E customers:

See California Residential Solar Site for more information!

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.

As part of California Assembly Bill 970, the California Public Utilities Commission (CPUC) approved a statewide Self-Generation Incentive Program. This program provides cash incentives for residential and business customers to produce their own energy through "self-generation" of electricity. "Self-generation" refers to clean distributed generation technologies - microturbines, small gas turbines, wind turbines, photovoltaics, fuel cells and internal combustion engines - installed on the customer's side of the utility meter to provide electricity for a part or all of customer's electric load.

The Commission approved program funding of $15.5 million annually for the San Diego Region from 2001 through 2004. The San Diego Regional Energy Office (SDREO) is designated as program administrator in the San Diego Gas & Electric service territory. The program was begun by the statewide administrators in July 2001.

Program Summary

The program provides financial incentives for the installation of new, qualifying self-generation equipment.  “Self-generation” refers to distributed generation technologies (microturbines, small gas turbines, wind turbines, photovoltaics, fuel cells and internal combustion engines) installed on the customer’s side of the utility meter that provide electricity for a portion or all of that customer’s electric load.

In SDG&E’s service territory the CPUC approved program funding of $15.5 million annually through December 31, 2004.

Incentive Category

Incentive Offered ($/Watt)

Maximum % of project cost

Minimum System Size

Maximum System Size

Eligible
Technologies

Level 1

$4.50/watt

50%

30 kW

1.5 MW 1

Level 2

$2.50/watt

40 %

None

1.5 MW 1

Must utilize waste heat recovery (cogen).

Level 3-R (Renewable)

$1.50/watt

40 %

None

1.5 MW 1

  • Microturbines operating on renewable fuel

  • Internal combustion engines and small gas turbines operating on renewable fuel

Level 3-N (Non-Renewable)

$1.00/watt

30%

None

1.5 MW 1

Must utilize waste heat recovery (cogen) and meet reliability criteria.

1  Maximum system size is 1.5 MW, however, output capacity above the first 1.0 MW is not eligible for incentives.

The San Diego Regional Energy Office (SDREO) is designated as program administrator in SDG&E’s service territory. For more information and to apply to the program contact the San Diego Regional Energy Office's Self Generation Incentive Program Resource Center.

California Energy Commission’s Emerging Renewables Rebate Program

The Self-Generation Incentive Program complements the California Energy Commission’s (CEC) Emerging Renewables Rebate Program, which traditionally provides the majority of its incentive funding to smaller, renewable self-generation units less than 30 kW in size.

For more information on this program contact the CEC's Rebate Program Website.