California SGIP: Home Battery & Solar Rebates Explained

California’s Self-Generation Incentive Program (SGIP) is one of the most generous clean energy rebate programs in the country. It helps homeowners lower the cost of home battery storage—and in some cases solar panels—by offering upfront incentives that can cover a large portion of installation costs.

SGIP places a strong focus on equity and affordability, with expanded rebates for income-qualified households through the Residential Solar and Storage Equity (RSSE) program. Funding for SGIP comes and goes over time and can be difficult to access without the help of a skilled installation company.

This guide explains how SGIP works, who qualifies, and which SGIP programs apply to residential solar and batteries.

Jump to a Section:

• What is the SGIP Program?
• SGIP Programs for Residential Solar & Batteries
• How Much Can SGIP Reduce the Cost of a Home Battery?
• Applying for SGIP
• Do Third-Party Owned Systems Qualify for SGIP?

 

 

What is the SGIP Program?

The Self-Generation Incentive Program (SGIP) is a California incentive that helps pay for home energy storage systems—and certain solar installations—by providing cash rebates based on system size.

SGIP is administered by California utilities and funded by the state to:

• Improve grid reliability
• Reduce greenhouse gas emissions
• Provide backup power during outages
• Expand access to clean energy for underserved communities

Most homeowners receive SGIP benefits as an upfront rebate, which reduces the cost of installing a battery or solar-plus-battery system.

Why does California offer rebates for battery storage?

There’s a reason energy nerds refer to battery storage as “grid bacon”—it makes everything better.

For starters, under the NEM 3.0 solar billing plan, battery storage is crucial for getting the most savings out of a solar system. It also provides backup power during California’s frequent power outages and allows solar owners to store and use their own clean energy instead of pulling dirty electricity from the grid. Home battery storage also makes the electrical grid more resilient and has even helped prevent power outages.

So, it makes sense that the CPUC would encourage homeowners to install battery storage through SGIP rebates.

SGIP Programs for Residential Solar & Batteries

SGIP includes several programs. Below are the ones that apply to homeowners and renters.

Note: SGIP programs are constantly opening, closing, and changing incentive rates. Check the SGIP metrics page to see the current status of each program.

Residential Solar and Storage Equity (RSSE)

RSSE is the most generous SGIP program and the primary pathway for income-qualified households.

What RSSE Covers

• Battery storage: up to $1,100 per kWh
• Solar panels: up to $310 per kW

RSSE incentives can cover up to 100% of system costs in some cases.

Who Qualifies for RSSE?

You may qualify if any of the following apply:

• Your household income is at or below 80% of Area Median Income (AMI)
• You participate in programs like CARE, FERA, SASH, DAC-SASH, or ESA
• You live in a disadvantaged community
• You live in qualified multifamily low-income housing

Both homeowners and renters may qualify, and you do not need to own the battery system—third-party ownership is allowed.

SGIP Equity Resiliency Program

The Equity Resiliency program is designed for households with critical backup power needs.

Who Qualifies?

• Homes in high wildfire risk areas
• Customers who have experienced multiple power shutoffs (PSPS)
• Households with medical baseline needs
• Certain well-pump dependent homes

Incentive Level

• Up to $1,000 per kWh of battery storage

This program focuses on resilience and safety, not income alone.

General Market SGIP (Standard Residential Battery Rebates)

If you don’t qualify for equity programs, you may still be eligible under General Market SGIP.

Key Details

• Applies to battery storage only
• Incentives range from $150–$300 per kWh, depending on funding availability
• Rebates decline over time and may run out quickly

General Market SGIP typically covers 10–20% of battery costs, making it less generous than equity programs.

How Much Can SGIP Reduce the Cost of a Home Battery?

SGIP Program	Potential Cost Coverage
RSSE	100%
Equity Resiliency	80-100%
General Market	10-20%

Actual savings depend on:

• System size
• Location
• Utility territory
• Available funding

 

Applying for SGIP

Most homeowners do not apply directly for SGIP programs, as the application process is quite technical and complex.

Instead:

1. You work with a solar or battery installer
2. The installer submits the SGIP application
3. The rebate is applied to your project pricing

Frankly, the SGIP application process can be long and drawn out. In most cases, we don’t recommend making your project contingent on getting upfront SGIP funding, as the risk of delays can outweigh the benefits of getting your project installed.

Do Third-Party Owned Systems qualify for SGIP?

Yes, SGIP incentives can be claimed for third-party owned systems. Third-party arrangements include:

• Leases
• Power Purchase Agreements (PPAs)
• Prepaid solar & battery products

It’s important to note that the system owner gets the rebate. In a third-party arrangement, the lease or PPA provider owns the system, claims the SGIP rebate, and passes on the value through lower monthly payments or upfront costs.

Final Takeaway: Is SGIP Worth It?

For eligible Californians with the patience to navigate red tape, SGIP makes home batteries affordable—or even free.

• RSSE offers the largest incentives ever
• Equity and resiliency programs prioritize safety and access
• Even standard rebates can lower battery costs significantly

If you’re thinking about solar or battery storage in California, connect with a solar.com Energy Advisor to see if SGIP incentives are available for your project.