California SGIP Battery Rebate: How to Lower Your Battery Costs
Home battery storage is crucial for backup storage and maximum solar savings in California — and the Self-Generation Incentive Program (SGIP) rebate is designed to help lower the cost. With fresh funding in 2024, a majority of Californians are eligible for a $1,500 SGIP rebate when they install an average-sized battery (10 kWh). However, this program sets aside much higher rebate amounts that can cover up to 100% of the cost to install home battery storage.
The key question is, how much do you qualify for?
In this article, we’ll cover what an SGIP rebate is, the tiered rebate amounts, and how to claim your battery rebate.
Jump to a Section:
- What is an SGIP rebate?
- What are the SGIP rebate amounts?
- What SGIP rebate amount am I eligible for?
- How do I claim an SGIP rebate?
- How much can SGIP lower my battery costs?
What is an SGIP rebate?
The Self-Generation Incentive Program (SGIP) is a rebate program run by the California Public Utilities Commission (CPUC) that rewards homeowners and businesses for installing energy storage systems (aka batteries).
The SGIP rebate typically works as a reimbursement after the project is installed. It applies to both the equipment and installation costs of a battery storage project, whether or not the battery was installed at the same time as solar panels.
Why does California offer rebates for battery storage?
Home battery storage has many benefits in California — both for homeowners and the electrical grid.
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.
What are the SGIP rebate amounts?
SGIP rebate amounts are based on the size of the battery installed at your home, measured in kilowatt-hours (kWh) of storage. There are four tiers of SGIP rebate amounts for homeowners, shown below as of October 2024.
| Rebate Tier | Amount |
| Small Residential | $150 per kWh |
| Large-scale Residential | $250 per kWh |
| Residential Equity | $850 per kWh |
| Residential Equity Resiliency | $1,000 per kWh |
These rebate amounts decline over time as more homeowners claim the incentive and SGIP funds are used up. So, it pays to install battery storage and claim your SGIP rebate sooner rather than later.
What SGIP rebate amount am I eligible for?
SGIP rebates are available to customers of Pacific Gas & Electric (PG&E), Southern California Edison (SCE), San Diego Gas & Electric (SDG&E), and SoCalGas (SCG). Californians can also apply through the Center for Sustainable Energy.
Most battery installations fall into the Small Residential and Large-scale Residential tiers. However, homeowners who meet certain economic, geographic, and medical criteria are eligible for much larger SGIP rebate amounts in the Residential Equity and Residential Equity Resiliency categories.
Let’s take a look at the eligibility requirements for each category.
Small Residential – $150 per kWh
To be eligible for the Small Residential SGIP rebate, you must be a residential customer of PG&E, SCE, SDG&E, or SoCalGas and install 10 kWh or less of battery storage. That puts the maximum incentive amount at $1,500 for a 10 kWh battery.
Large-scale Residential – $250 per kWh
To be eligible for the Large-scale Residential SGIP rebate, you must be a residential customer of PG&E, SCE, SDG&E, or SoCalGas and install more than 10 kWh of battery storage. For reference, a single Tesla Powerwall is 13.5 kWh. At $250 per kWh that amounts to a $3,375 SGIP rebate.
Residential Equity – $850 per kWh
The Residential Equity tier features substantially larger incentives for low-income and disadvantaged communities that can cover up to 85% of your battery costs. To be eligible as a single-family homeowner, your household must meet one of the following criteria.
Criteria 1: Household income is 80% of the area median income or less, based on your most recent federal tax return (Form 1040).
Criteria 2: Proof of enrollment or eligibility in one of the following programs:
- California Alternate Rates for Energy (CARE)
- Family Electric Rate Assistance Program (FERA)
- Energy Savings Assistance (ESA)
- Single-family Affordable Solar Homes (SASH)
- Disadvantaged Communities –Single-family Solar Homes (DAC-SASH)
- Solar on Multifamily Affordable Housing Program (SOMAH)
- Multifamily Affordable Solar Housing Program (MASH)
Want to check if you’re eligible? Team up with a Solar.com Energy Advisor to check your eligibility.
SGIP Equity Resiliency – $1,000 per kWh
The highest SGIP rebate tier is called Equity Resiliency and it’s worth $1,000 per kWh of battery storage installed for up to 100% of your project cost. This tier is reserved for Californians who meet at least one criteria from each column in the chart below.
| Criteria 1 (at least one to qualify) | Criteria 2 (at least one to qualify) |
| Located in a Tier 2 or 3 High Fire Threat District (purple zones in this map) | Eligible for SGIP Equity rebate |
| Experienced two or more Public Safety Power Shutoffs (PSPS) prior to applying for SGIP (orange zones in this map) | Currently enrolled in a utility Medical Baseline Program or notified utility of a serious illness |
| Your home relies on an electric pump for water; is your primary residence; is not provided water by a utility; and you meet income eligibility requirements |
Proving eligibility for this tier takes work — but it’s well worth it! On solar.com, we’re here to help you claim your maximum rebate amount. Connect with an Energy Advisor to check your eligibility.
How do I claim an SGIP rebate?
Battery installers typically apply for the SGIP rebate on your behalf and the process follows the basic steps below.
- Submit a Reservation Request
- Receive a Confirmed Reservation Letter
- Proceed with your battery storage installation
- When the project is complete, submit an Incentive Claim Form
- A program administrator may schedule an inspection
- Once approved, the incentive payment process begins
The key to claiming your SGIP rebate is working with an installer who knows the process. On Solar.com, we connect homeowners with vetted solar + battery installers who have proven their ability to navigate the SGIP rebate process.
How much can SGIP lower my battery costs?
Let’s say you want a single 13.5 kWh Tesla Powerwall 3 with a Backup Switch to improve your solar savings and backup your home during power outages. Before incentives, the battery and installation might cost $16,000. The Large-scale Residential SGIP rebate would lower that $12,625 — but you’re not done yet.
You can also claim the Residential Clean Energy Credit for that battery on your next federal tax return. This federal tax credit is worth 30% of the remaining cost of the battery, after the SGIP rebate. In this case, it would be worth $3,787.50.
After the SGIP rebate and 30% tax credit, the net cost of installing a Powerwall 3 is just under $8,840. That’s nearly 50% off a premium home battery that improves the economics of your solar system.
SGIP Rebate Frequently Ask Questions
Is there a government rebate for solar batteries?
In California, the Self-Generation Incentive Program (SGIP) is a rebate worth between $150 and $1,000 per kWh of battery storage installed for eligible residential projects. This rebate is available after the battery storage is installed and, in some cases, can cover the entire amount of the project.
There is also a federal tax credit for battery storage worth 30% of the gross cost of the project that can be used in conjunction with SGIP rebates.
Are there rebates for solar battery in California?
Yes, the Self-Generation Incentive Program (SGIP) offers rebates for battery storage projects whether they are connected to solar or not. The rebate is worth between $150 and $1,000 per kWh of battery storage installed, depending on income, medical vulnerabilities, fire risk and other factors.
Where to file California rebate for solar battery?
Eligible California residents can apply for the Self-Generation Incentive Program (SGIP) rebate through the SGIP Online Application Database. However, an experienced and reputable installer can apply for the rebate on your behalf.
Can renters qualify for the SGIP battery storage rebate?
Yes, renters in qualifying buildings can apply for an SGIP battery storage rebate and will need to work with their landlord to do so.
Do I have to have solar to qualify for the SGIP battery rebate?
No, you do not need to have or buy solar panels to qualify for the SGIP battery rebate. However, there are substantial benefits to pairing solar panels with battery storage.
