Self-Generation Incentive Program (SGIP)


Program Overview

PG&E provides financial incentives for business customers installing new, qualifying equipment for generating energy. The Self-Generation Incentive Program (SGIP) applies both to renewable and non-renewable technologies.

Who Benefits from the Program?

New and existing business customers are encouraged to apply when installing qualifying, self-generation technology.

Qualifying renewable, emerging and waste energy recovery technologies*Qualifying nonrenewable technologies
  • Wind turbines
  • Advanced Energy Storage (AES)
  • Waste heat to power
  • Biogas
  • Pressure reduction turbines
  • Fuel cells (electric or combined heat and power)
  • Internal combustion engines
  • Microturbines
  • Gas turbines (all combined heat and power technologies)

*For solar rebates, check out PG&E’s California Solar Initiative (CSI)

The incentives offered in PG&E’s SGIP program depend upon the type of system, size, fuel source and out-of-pocket costs involved in installing the self-generation equipment.

The 2014 incentive levels are as follows:

$33.4 million per year in available incentives75 percent renewable and emerging/25 percent nonrenewable
Incentive levels Technology Incentive ($/watt)
Renewable, waste heat capture technologies Wind turbines $1.13/W
  Waste heat to power $1.13/W
  Pressure reduction turbine $1.13/W
  Renewable microturbine (on-site or directed biogas) $2.08/W*
  Renewable internal combustion engine (on-site or directed biogas) $2.08/W*
  Renewable gas turbine (on-site or directed biogas) $2.08/W*
  Renewable fuel cells (on-site or directed biogas) $3.45/W*
Emerging technologies Advanced Energy Storage (AES) $1.62/W
  Fuel cells: combined heat and power (CHP) or electric $1.83/W
Nonrenewable technologies Nonrenewable microturbine $0.46/W
  Nonrenewable internal combustion engine $0.46/W
  Nonrenewable gas turbine $0.46/W

*Includes $1.80/W biogas adder for utilizing a renewable fuel

For projects that are greater than one megawatt (MW) and up to three megawatts, the incentives identified above decline according to the schedule below:

CapacityIncentive rate (percentage of base)
0 to 1 MW 100%
>1 MW to 2 MW 50%
>2 MW to 3 MW 25%

Maximum savings: 60 percent of approved project costs

In September 2000, Assembly Bill 970 was approved, which called for the creation of more energy supply and demand programs. As a result, in March 2001, the California Public Utilities Commission (CPUC) issued a decision creating the Self-Generation Incentive Program (SGIP) to offer financial incentives to their customers who install certain types of distributed generation to meet all or a portion of their energy needs. In late 2003, AB 1685 extended the SGIP through 2007. Then, in late 2006, AB 2778 extended the SGIP again through 2011. In early 2006, the CPUC established the California Solar Initiative (CSI) and ordered changes to transition solar energy programs from the SGIP into the CSI beginning in 2007. Finally in 2011, as a result of the implementation of SB 412, the program was modified to its current structure, with a focus on the reduction of greenhouse gas (GHG) emissions, and SGIP was extended through 2015.


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  • Email:

    Customer Service Center

    Mailing Address
    PG&E Self-Generation Incentive Program (SGIP)
    PO Box 7433
    San Francisco, CA 94120

    Overnight Address
    PG&E Self-Generation Incentive Program (SGIP)
    245 Market St., MC N7R
    San Francisco, CA 94105-1797

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