SGIP – Frequently Asked Questions (FAQs)

California developers and homeowners must have their SGIP applications ready to submit the minute the program opens. If you live or install in one of the applicable utility areas and you have been considering adding energy storage, you must ACT IMMEDIATELY. Complete the SGIP inquiry form to get started.

Action for Business Owners:

  1. Learn more about the SGIP program on the California Public Utilities Commission website:
  2. Contact Adara Power to determine if your solar (if installed) will be eligible for the CA SGIP program once it opens.
  3. Adara Power will connect you to our nearest Adara Power certified developer in your area.
  4. Adara Power will work with your solar developer to ensure that your application has the highest chance of being selected for a SGIP rebate.

As a convenience, we’ve distilled parts of the SGIP Handbook into a quick FAQ, which is intended to answer common questions about the becoming eligible for the incentive. For full details, please check out the SGIP web site.

Who is eligible for the SGIP Incentive?

  • Any retail electric or gas customer of PG&E, SCE, SoCalGas, or SDG&E is eligible to receive incentives from the SGIP. You must be the utility customer of record at the site where the SGIP system is or will be located.
  • SGIP has identified energy storage projects that have priority in the SGIP lottery, which must be:
    • Located within the service territory of Los Angeles Department of Water and Power.
    • Located within the West Los Angeles Local Reliability Area of Southern California Edison’s service territory.
    • Paired with an on-site renewable generator and claiming the Investment Tax Credit (ITC) or, if not claiming the ITC, charging a minimum of 75% from the on-site renewable generator.
    • Able to meet more than one criterion shall be given the highest priority.
    • Note: energy storage projects that meet more than one criterion shall be given the highest priority.

How can I tell if my energy storage project is eligible?

  • Energy storage projects may be stand-alone or paired with generating systems and must be capable of discharging fully at least once per day.
  • Energy storage projects, whether paired or stand-alone, may be sized up to the previous 12-month annual peak demand (kW).
    • Paired with On-site Renewables To be considered paired with and charging from on-site renewables, energy storage systems must either be claiming the ITC or, if not claiming the ITC, charge a minimum of 75% from the on-site renewable generator.
    • Demand Response Dual Participation Energy storage projects funded through the SGIP are eligible to provide demand response services or participate in demand response programs. All SGIP projects must select a pre-approved developer before the application may be submitted. A list of approved developers will be available at
  • The following equipment is NOT eligible for participation in the SGIP:
    • Backup systems intended solely for emergency purposes
    • Any system/equipment that is capable of operating on, or switching to, diesel fuel or diesel cycle for start-up or continuous operation
    • Field demonstrations for proof-of-concept operation of experimental or non-conventional systems partially or completely paid by research and development funds
    • Rebuilt, refurbished or relocated equipment (e.g. second life batteries)
    • Equipment that has been interconnected for more than 12 months

What are the energy storage incentive rates?

  • At the time of the program opening, total energy storage incentive funds are divided equally across five steps. Energy storage incentives decline by $.05/Wh between incentive steps and are less when also claiming the Federal Investment Tax Credit (ITC). The table below shows the incentive rates as of April 18, 2018.

What is the application process?

  • All residential projects and non-residential projects less than 10 kW must follow the two-step application process. Non-residential projects greater than or equal to 10 kW must follow a three-step process. See the diagrams below.

Two-Step Process


Three-Step Process