California's Self-Generation Incentive Program (SGIP) is the state's primary battery storage incentive — and under NEM 3.0, it has become a critical part of the CA solar + battery financial case. SGIP provides per-kWh incentives for qualifying battery installations administered through PG&E, SCE, SDG&E, and SoCalGas.
SGIP budget categories:
- Equity Resiliency budget: Up to $1,000/kWh for qualifying low-income customers AND customers in Tier 3 or Tier 4 Very High Fire Hazard Severity Zones (VHFHSZ) who have experienced a Public Safety Power Shutoff (PSPS) event or are on a medical baseline rate. For a 13.5 kWh Powerwall, that's up to $13,500 in incentive — nearly offsetting the full battery cost before the federal 30% ITC.
- Equity budget: For low-income customers not in VHFHSZ. Substantial incentive levels.
- General Market budget: For all other qualifying customers. Lower per-kWh rates but still meaningful. Check current availability with your installer — General Market blocks fill.
How SGIP works: Your installer applies through your utility on your behalf. The incentive is paid out over 5 years (in most cases) contingent on the battery remaining operational. You do NOT receive a lump sum upfront — it's paid as an annual incentive based on the battery's energy storage capacity.
SGIP stacks with the federal 30% ITC on battery storage — a $13,500 battery that qualifies for Equity Resiliency SGIP plus the 30% ITC ($4,050) would have a net cost of essentially zero before any billing savings.