California's SGIP Explained: Get Paid to Power Your Home with Battery Backup
Life in California is fantastic, but dealing with sudden power outages and those ever-climbing energy bills can be a real drag. What if you could keep your home humming when the lights go out and trim down your electricity costs? A home battery backup makes that possible. Even better, California has a special program called the Self-Generation Incentive Program (SGIP) that can help you pay for it, especially if you're already using solar power or thinking about adding it.
What's SGIP: California's Incentive for Home Energy Storage
SGIP offers a great opportunity for Californians to gain energy independence. This program is designed to encourage residents to install their own clean energy systems, particularly battery storage.
The Self-Generation Incentive Program, or SGIP, is run by the California Public Utilities Commission (CPUC). It gives cash rebates to people who install new, qualifying energy technologies at their homes or businesses. The main focus these days is on energy storage systems – basically, big batteries. The big ideas behind SGIP are to:
- Help Californians use more distributed energy resources (like solar and batteries).
- Cut down on greenhouse gas emissions that contribute to climate change.
- Reduce the strain on the main power grid and lower how much electricity customers need to buy from utilities.
- Make the state's electric system more reliable and encourage new energy technologies.
While SGIP covers a few types of technology, battery storage, often connected to rooftop solar panels, is a primary recipient of these incentives. Major utility companies like PG&E, SCE, SoCalGas, and SDG&E help run the program for their customers.
The 4 Advantages of Battery Backup: Power Security and Savings with SGIP
Installing in a battery system has real, practical benefits that go beyond just getting a rebate. It gives you control over your home's electricity and could save you money, especially if you pair it with solar panels.
Reliable Home Power with Battery Backup
A home battery system gives you peace of mind. During a power outage, whether from a storm, wildfire risk, or a Public Safety Power Shutoff (PSPS), your battery can keep essential appliances running, let alone that SGIP rebates specifically prioritize customers in high fire-risk areas and those affected by PSPS events. How long it lasts depends on the battery's size and what you're powering, but it can make a huge difference. This is especially important as California faces more unpredictable weather and fire seasons.
Financial Savings with SGIP and Batteries
Battery storage can also help you save money. You can use energy from your solar panels or the grid when it's cheaper later if you store it. This way, you don't have to buy expensive power from the utility company. This is a smart move, especially since California recently changed how it gives credits solar owners. SGIP will also pay for a big chunk of the cost of installing the batteries, especially for qualifying customers. This makes the investment more appealing from a financial point of view.
NEM 3.0 and Smart Solar Pairing
California updated its net metering policy to NEM 3.0 in April 2023. This change significantly reduced the payment solar owners receive for sending their extra solar energy back to the grid. With a battery, you can store that excess solar power yourself. Then, you can use your own stored solar energy in the evening or when electricity rates are high, bypassing the lower NEM 3.0 export rates and maximizing the value of your solar system. SGIP makes adding this battery more affordable.
Batteries Support a Stronger California Grid
Widespread adoption of batteries makes the grid less stressed during times of high demand, improves grid stability, and makes it easier to use more renewable energy sources. Through lowering demand spikes and offering backup power during emergencies, distributed battery systems help make the statewide electricity system more stable and reliable.
How SGIP Rebates Lower Your Battery Costs
The Self-Generation Incentive Program (SGIP) is California's flagship initiative to make home battery storage more affordable. Whether you're looking for backup power, lower bills, or a smarter way to use your solar energy, SGIP rebates can dramatically reduce the upfront cost of installing a battery system. Here's how the program works—and how much you could save.
Standard SGIP Rebates: Savings for Most Homeowners
For most Californians, SGIP offers rebates that typically cover 15–25% of the installed cost of a home battery. The exact amount depends on:
- Battery size (measured in kilowatt-hours, kWh)
- Current funding step (rebates decrease as more people participate)
- Your utility provider
For example, with a 10 kWh battery, you could receive $1,500–$2,500 back—substantially lowering your initial investment.
Special SGIP Funding: Enhanced Rebates for Equity and Resiliency
California has dedicated over $1 billion to SGIP through 2024, with about 75% earmarked for battery storage. The program features special categories for customers who need the most help:
- Equity Budget
- Who qualifies? Low-income households (typically those earning less than 80% of area median income).
- Rebate amount: Up to $850 per kWh of battery storage.
- Savings: Can cover about 85% of the total battery cost.
- Equity Resiliency Budget
Who qualifies?
- Low-income customers
- Medically vulnerable individuals
- Residents in Tier 3 or 4 fire risk zones
- Households that have experienced two or more Public Safety Power Shutoff (PSPS) events
- Rebate amount: Up to $1,000 per kWh.
Savings: Can cover nearly 100% of the battery system cost—making storage essentially free for many qualifying families.
New for 2025: Residential Solar and Storage Equity Incentives
Starting June 2, 2025, California is rolling out a new $280 million incentive specifically for low-income residents installing paired solar and battery systems:
Battery incentive: $1,100 per kWh
Solar incentive: $3,100 per kW
Advance payments: Eligible customers can receive 50% of the incentive upfront, reducing or eliminating out-of-pocket costs until installation is complete.
This new funding, combined with federal tax credits, means that qualifying households can often install solar and batteries with little to no upfront cost.
Category | Incentive Rate ($/kWh) | Typical % of Cost Covered | Who Qualifies? |
Standard Residential | $150–$250 | 15–25% | Most homeowners |
Equity | $850 | ~85% | Low-income households |
Equity Resiliency | $1,000 | ~100% | Low-income, medically vulnerable, fire/PSPS-affected |
Solar & Storage Equity (2025) | $1,100 (battery) | Up to 100% | Low-income, paired solar + storage |
SGIP Rebate Overview (June 2025)
Whether you're a typical homeowner or part of a vulnerable community, there's likely a rebate that can help you save big on energy storage—especially if you act while funding is available.
Your Roadmap to SGIP: 5 Steps
Accessing these SGIP benefits involves a few key steps.
Step 1: Connect with a Qualified SGIP Installer
This is the most practical first step. Approved SGIP installers are familiar with the program requirements and can guide you through the entire application process. They can help determine your eligibility and the right system size for your needs. The CPUC website may list approved developers or offer tools to find an installer, though they don't endorse specific companies.
Step 2: Connect with a Qualified SGIP Installer
The most practical first step is to reach out to a licensed SGIP installer. These experts know what the SGIP standards are, can help you figure out your eligibility, and can also help you choose the right size battery system. The CPUC has a list of Approved SGIP Developers, but it doesn't recommend any particular company. Before signing a contract, it's smart to get multiple bids and check the recommendations
Step 3: SGIP Application Process
Your installer typically handles most of the SGIP paperwork, including submitting detailed information about your proposed system and property to your utility or SGIP Program Administrator. The process starts with a Reservation Request, followed by a Confirmed Reservation Letter if your application is approved.
Step 4: Battery System Installation
Once your reservation is confirmed, your installer will schedule and complete the installation of your battery system.
EcoFlow Solutions for Every Scenario
EcoFlow products could be the best choice for California homes using SGIP, off-grid and remote properties, urban apartments and small spaces, emergency and medical backup, outdoor and RV use, and retrofitting existing solar homes.
Whole-Home Backup: EcoFlow DELTA Pro Ultra, DELTA Pro 3, and DELTA Pro series.
Portable/Emergency Power: EcoFlow RIVER series.
Urban/Small Spaces: EcoFlow STREAM Plug & Play Solar System for easy, flexible solar setups on balconies and rooftops.
Step 5: Inspection and Rebate Payment
Your utility or program administrator may check the system after installation to make sure it meets all the requirements. After being accepted, you or your installer submit an Incentive Claim Form. The rebate is then sent to the customer, usually by check or wire transfer. For residential customers, the full incentive is paid upfront after verification, but this can take a few months.
Important SGIP Program Considerations and Updates
Remember that the SGIP budgets and incentive levels can change. You can find out what's going on by visiting the SGIP official website and looking at its Program Metrics screen, or you can ask your installer. Often, funds are released in stages. Also, know any operational rules. For example, some companies may say that the battery needs to discharge a certain number of times a year.
FAQs about SGIP and Battery Backup
Q1: What is SGIP in simple terms?
A: SGIP, which stands for the Self-Generation Incentive Program, is a California initiative. It's designed to give money back, like a rebate, to people who install specific clean energy systems in their homes or businesses. This often includes home battery storage, which many people pair with their solar panel installations to save energy and keep the lights on during outages.
Q2: How much money can I really get from SGIP for a battery?
A: The amount of money you can receive from SGIP for a battery really depends on your situation. Typically, standard rebates could pay for about 15% to 20% of what an average battery costs. But, if you meet the criteria for the Equity or Equity Resiliency programs, such as having a lower income or living in an area prone to wildfires, the rebate amount can increase significantly, sometimes covering almost the entire cost of the battery system.
Q3: Do I have to get solar panels to receive an SGIP rebate for a battery?
A: No, you don't absolutely need solar panels to get an SGIP rebate for just a battery. The program does provide incentives for battery storage systems on their own. Still, many people find that combining a battery with solar panels gives them the biggest advantages, like saving more on electricity bills, and certain SGIP incentives are specifically for these solar-plus-battery setups.
Q4: Are there bigger SGIP rebates for certain California residents?
A: Yes, definitely. SGIP has special categories called Equity and Equity Resiliency that offer significantly larger rebates. These are aimed at helping California households that have lower incomes, include individuals with specific medical needs requiring constant power, or are situated in places facing high wildfire dangers or common public safety power shutoffs.
Q5: How long will a battery keep my home powered during an outage?
A: The duration a battery can power your home during an outage isn't fixed; it depends mainly on two things: the battery's storage capacity (how big it is) and your home's electricity consumption while the power is out. A qualified installer can assess your typical energy use and help you select a battery size that adequately meets your backup power requirements.