{"id":11759,"date":"2024-02-13T18:50:42","date_gmt":"2024-02-13T18:50:42","guid":{"rendered":"https:\/\/www.solar.com\/learn\/?p=11759"},"modified":"2024-02-13T19:25:09","modified_gmt":"2024-02-13T19:25:09","slug":"cpuc-proposes-beefed-up-sgip-incentives","status":"publish","type":"post","link":"https:\/\/www.solar.com\/learn\/cpuc-proposes-beefed-up-sgip-incentives\/","title":{"rendered":"California Proposes Beefed-Up Solar and Battery Rebates for Low-Income Households"},"content":{"rendered":"<p>Low-income households in California may soon have access to one of the best solar and battery incentives in the country and an opportunity to drastically lower their energy costs.<\/p>\n<p>On November 2, the California Public Utilities Commission (CPUC) proposed rules for allocating $280 million for the <a href=\"https:\/\/www.solar.com\/learn\/sgip-info-battery-storage-rebate-up-to-100-percent\/\" target=\"_blank\" rel=\"noopener\">Self-Generation Incentive Program (SGIP)<\/a>. Historically, this program has been restricted to rebates for battery storage. However, the CPUC proposal would increase the battery incentive <em>and\u00a0<\/em>create a solar rebate for eligible low-income households.<\/p>\n<p><em>Keep in mind, this is only a proposal at this point! A final vote could come as early as March 7 and changes could be made before then. Check back for updates.<\/em><\/p>\n<h2>New SGIP incentive amounts proposed in 2024<\/h2>\n<p><strong>Under the new proposal, the &#8220;Residential Equity&#8221; SGIP incentive would increase from $850 per kWh of battery storage to $1,100 per kWh of battery storage\u00a0<\/strong><em><strong>plus $3.10 per watt of solar.<\/strong>\u00a0<\/em>This category would also be renamed &#8220;Residential Solar and Storage Equity&#8221; to match the new incentives.<\/p>\n<p>So, let&#8217;s say you are an eligible low-income household and want to install an 8 kW solar system with 10 kWh of <a href=\"https:\/\/www.solar.com\/learn\/how-long-can-a-battery-provide-power-during-an-outage\/\" target=\"_blank\" rel=\"noopener\">backup battery<\/a>, here&#8217;s how much your SGIP incentives would increase under the new proposal.<\/p>\n<table style=\"border-collapse: collapse; width: 100%; height: 120px;\">\n<tbody>\n<tr style=\"height: 24px;\">\n<td style=\"width: 25%; height: 24px;\"><\/td>\n<td style=\"width: 25%; height: 24px;\">Existing incentive<\/td>\n<td style=\"width: 50%; height: 24px;\">Proposed incentive<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 25%; height: 24px;\">SGIP category<\/td>\n<td style=\"width: 25%; height: 24px;\">Residential Equity<\/td>\n<td style=\"width: 50%; height: 24px;\">Residential Solar and Storage Equity<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 25%; height: 24px;\">Battery incentive (10 kWh)<\/td>\n<td style=\"width: 25%; height: 24px;\">$8,500<\/td>\n<td style=\"width: 50%; height: 24px;\">$11,000<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 25%; height: 24px;\">Solar incentive (8 kW)<\/td>\n<td style=\"width: 25%; height: 24px;\">N\/A<\/td>\n<td style=\"width: 50%; height: 24px;\">$24,800<\/td>\n<\/tr>\n<tr style=\"height: 24px;\">\n<td style=\"width: 25%; height: 24px;\"><strong>Total incentive amount<\/strong><\/td>\n<td style=\"width: 25%; height: 24px;\"><strong>$8,500<\/strong><\/td>\n<td style=\"width: 50%; height: 24px;\"><strong>$35,800<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>That&#8217;s a massive difference! And while we hate to throw around the term &#8220;<a href=\"https:\/\/www.solar.com\/learn\/free-solar-panels\/\" target=\"_blank\" rel=\"noopener\">free solar<\/a>,&#8221; there may be cases in which the proposed SGIP incentives cover the entire cost of a solar and storage project.<\/p>\n<p>It&#8217;s worth noting that this incentive\u00a0<em>does not\u00a0<\/em>apply to roofing costs. However, up to $3,500 can be put toward wiring and panel upgrades and it can cover inverter replacements, if necessary.<\/p>\n<p><iframe loading=\"lazy\" title=\"How long can solar and battery power during a grid outage? #renewableenergy  #goingsolar\" width=\"1080\" height=\"608\" src=\"https:\/\/www.youtube.com\/embed\/kOA-Jrl21Mo?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" allowfullscreen><\/iframe><\/p>\n<h2>Qualifying for new SGIP incentives<\/h2>\n<p>So who would qualify for for the expanded incentives? First off, this incentive would be reserved for battery storage projects and solar plus battery storage projects. It does\u00a0<em>not\u00a0<\/em>apply to solar-only projects.<\/p>\n<p>Fortunately, the CPUC proposal would also make it easier to qualify for the Residential Solar and Storage Equity incentive by removing the &#8220;resale restriction&#8221; criteria and expanding the programs that automatically qualify households.<\/p>\n<table style=\"border-collapse: collapse; width: 100%;\">\n<tbody>\n<tr>\n<td style=\"width: 50%;\">Existing eligibility criteria<\/td>\n<td style=\"width: 50%;\">Proposed eligibility criteria<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 50%;\">Verify household income is 80% or less of area median income AND the property has a resale restriction\/equity sharing agreement<\/td>\n<td style=\"width: 50%;\">Verify household income is 80% or less of area median income<\/td>\n<\/tr>\n<tr>\n<td style=\"width: 50%;\"><strong>OR<\/strong><\/td>\n<td style=\"width: 50%;\"><strong>OR<\/strong><\/td>\n<\/tr>\n<tr>\n<td style=\"width: 50%;\">Household previously reserved funds through SASH or DC-SASH<\/td>\n<td style=\"width: 50%;\">Household previously reserved funds through SASH, DC-SASH or is participating in CARE or FERA rates or the Energy Savings Assitance program<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>So, the CPUC proposal expands eligibility requirements and increases the incentive amount. What&#8217;s the catch?<\/p>\n<p>There are two things to be aware of.<\/p>\n<h3>1) Demand Response Programs<\/h3>\n<p>The CPUC proposal would require <em>all\u00a0<\/em>SGIP participants to enroll in a &#8220;<a href=\"https:\/\/docs.cpuc.ca.gov\/PublishedDocs\/Efile\/G000\/M524\/K570\/524570725.PDF\" target=\"_blank\" rel=\"noopener\">Qualified Demand Response Program<\/a>&#8221; through their utility.<\/p>\n<p>In a <a href=\"https:\/\/www.cpuc.ca.gov\/industries-and-topics\/electrical-energy\/electric-costs\/demand-response-dr\" target=\"_blank\" rel=\"noopener\">demand response program<\/a>, utility customers are asked to reduce their electricity consumption during high-demand events to reduce stress on the grid. The utility may drastically increase prices during high-demand events and\/or pay battery owners to export power onto the grid &#8212; it depends on the program.<\/p>\n<p>In California, residential demand response programs include:<\/p>\n<ul>\n<li>SCE Summer Discount Plan<\/li>\n<li>SCE Smart Energy Program<\/li>\n<li>PG&amp;E ART<\/li>\n<li>PG&amp;E SmartRate<\/li>\n<li>SDG&amp;E EECC-TOU-DR-P<\/li>\n<\/ul>\n<p>Demand response programs can help prevent power outages. However, if you&#8217;re not careful you could end up paying\u00a0<em>even higher\u00a0<\/em>electricity prices during high-demand events.<\/p>\n<h3>2) Enrolling in the Net Billing Tariff (NEM 3.0)<\/h3>\n<p>CPUC is also proposing that all future SGIP customers &#8212; <em>except those in the Residential Solar and Storage Equity group &#8212;\u00a0<\/em>enroll in the new Net Billing Tariff (<a href=\"https:\/\/www.solar.com\/learn\/nem-3-0-proposal-and-impacts-for-california-homeowners\/\" target=\"_blank\" rel=\"noopener\">aka NEM 3.0<\/a>).<\/p>\n<p>NEM 3.0 is a billing structure that pays solar customer far less for their excess electricity than what they buy it for. On average, NEM 3.0 solar owners earn 8 cents per kWh for the excess production and buy electricity from the grid for 30-40 cents per kWh, depending on their utility rate plan.<\/p>\n<p>This rule would substantially impact current solar owners who have better compensation under NEM 1.0 or NEM 2.0 and wish to add battery storage <em>without\u00a0<\/em>switching to NEM 3.0.<\/p>\n<p>Again, this is only a proposal and the California Solar and Storage Association (CALSSA) has promised to push back on this criteria.<\/p>\n<h2>The bottom line<\/h2>\n<p>In general, solar incentives get worse over time as the cost of solar plummets. However, the CPUC is proposing an <em>extremely valuable\u00a0<\/em>solar and battery incentive for eligible low-income households.<\/p>\n<p>This incentive would put the cost-saving benefits of solar and battery in reach for low-income households that spend a disproportionate share of their income on California&#8217;s expensive grid electricity.<\/p>\n<p><a href=\"https:\/\/www.solar.com\/dashboard\">Connect with an Energy Advisor to create a plan for capturing this incentive!<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Low-income households in California may soon have access to one of the best solar and battery incentives in the country and an opportunity to drastically lower their energy costs. On&#8230;<\/p>\n","protected":false},"author":51,"featured_media":11760,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":""},"categories":[90,6],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.5 (Yoast SEO v19.10) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>California Proposes Beefed-Up Solar and Battery Rebates for Low-Income Households | Solar.com<\/title>\n<meta name=\"description\" content=\"California energy regulators are proposing a massive increase to solar and battery rebates for eligible low-income households.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.solar.com\/learn\/cpuc-proposes-beefed-up-sgip-incentives\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"California Proposes Beefed-Up Solar and Battery Rebates for Low-Income Households\" \/>\n<meta property=\"og:description\" content=\"California energy regulators are proposing a massive increase to solar and battery rebates for eligible low-income households.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.solar.com\/learn\/cpuc-proposes-beefed-up-sgip-incentives\/\" \/>\n<meta property=\"og:site_name\" content=\"Solar.com\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Solar.comOfficial\/\" \/>\n<meta property=\"article:published_time\" content=\"2024-02-13T18:50:42+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-02-13T19:25:09+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/assets.solar.com\/wp-content\/uploads\/2024\/02\/why-is-my-electricity-bill-so-high-with-solar-panels.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"768\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Sam Wigness\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@SamuelWigness\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Sam Wigness\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.solar.com\/learn\/cpuc-proposes-beefed-up-sgip-incentives\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.solar.com\/learn\/cpuc-proposes-beefed-up-sgip-incentives\/\"},\"author\":{\"name\":\"Sam Wigness\",\"@id\":\"https:\/\/www.solar.com\/learn\/#\/schema\/person\/b594f06d4c2b5e6a0e85af02b90fb883\"},\"headline\":\"California Proposes Beefed-Up Solar and Battery Rebates for Low-Income Households\",\"datePublished\":\"2024-02-13T18:50:42+00:00\",\"dateModified\":\"2024-02-13T19:25:09+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.solar.com\/learn\/cpuc-proposes-beefed-up-sgip-incentives\/\"},\"wordCount\":793,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.solar.com\/learn\/#organization\"},\"articleSection\":[\"Solar Incentives by State\",\"Solar Rebates &amp; 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