Funding for SGIP is in a constant state of flux. To help Stem partners stay current, the most frequently asked questions and updates are posted below. We will keep this page updated as new information becomes available.
Last updated: May 2, 2022
Q: What is the current status of the SGIP Large-Scale Storage Budget?
As of early May 2022, PG&E, SDG&E, and SoCalGas are all in Step 4 of the Large-Scale Storage budget. Step 4 is the final budget step, with an incentive amount up to $300/kWh for projects that are not taking the Federal Investment Tax Credit (ITC). Projects with ITC are eligible for up to $220/kWh.
Available Budget by Utility
- PG&E: $14.3M
- SDG&E: $11.1M
- SoCalGas: $4.3M
- SCE: All of SCE Large-Scale budget categories are now closed, with no additional funds planned.
Q: Will more funding be added?
A: No additional funding is currently planned. If any SGIP projects are canceled, funds will be returned to the available budget or rolled into the next funding step. Stem does not expect this to happen, and even if it does, there will not be a large amount of funding available.
Q: Since SCE has no remaining budget, does this mean that customers in SCE territory can no longer receive SGIP incentives?
A: All SCE customers that are served by SoCalGas are eligible to apply for SGIP under the SoCalGas budget. However, funding is limited. The SoCalGas Large-Scale Storage budget only has $4M available in Step 4.
Q: How can I ensure my projects receive SGIP funds?
Stem is encouraging our partners to submit reservations ASAP, across all utilities! Based on the available budgets and recent pace of applications, we expect SGIP funds to be depleted across all utilities within the next couple of months.
It is important to remember that the SGIP application fee is fully refundable within 150 days of submission, so there is very low risk in submitting applications. A far greater risk is that other project applications get submitted that close out the available budget, leaving you without crucial funding for your storage project.
Q: Are SGIP application fees refundable?
A: Yes, SGIP application fees are fully refundable within approximately 150 days of receiving an SGIP Reservation. Additionally, SGIP administrators will extend the refund deadline if you can show that progress is being made towards project contracting.
Q: What will happen to the CA energy storage market once SGIP goes away?
A: Although SGIP has helped catalyze the growth of energy storage in CA, there are many reasons to believe that there will still be a robust energy storage market after SGIP is depleted.
Key drivers of the market include:
- California’s Title 24 Building Codes have recently been updated to require that all new commercial building construction must include solar and storage.
- The California Energy Commission (CEC) expects that these new rules, which go into effect starting in 2023, will spur 400MW of new C&I storage deployments annually.
- Storage-paired EV charging is expected to grow exponentially in the coming years, as CA has set aggressive targets to phase out internal combustion engine (ICE) cars by 2035.
- Over $1B of recently-announced funding has been earmarked for the development of EV charging infrastructure in CA. Many EV charging stations will be deployed with storage, which will help reduce charging costs and lessen the impact on the grid from EV charging loads.
- Utility procurements, particularly by Community Choice Aggregators (CCAs), will be a growth area for energy storage. CCAs value the capacity, resilience, and local economic benefits provided by customer-sited storage.
