SGIP renewed?

[strangely]

I recall reading last week that Gerry Brown signed off on additional SGIP program funding. Wondering what changes they will make, and whether the funding will be similar to the last one?

I only did one powerwall last time and regretted not doing two, and would love to expand on this since all the hard work is done. Asding an additional powerwall should be easy.

 

[zanary]

I think whatever he signed will take effect in 2020. I could be wrong with the year I think.

 

[GenSao]

California Passes Bill to Extend $800M in Incentives for Behind-the-Meter Batteries - SB 700 would extend the Self-Generation Incentive Program by about $166 million per year through 2023

 

[zanary]

California Passes Bill to Extend $800M in Incentives for Behind-the-Meter Batteries - SB 700 would extend the Self-Generation Incentive Program by about $166 million per year through 2023

More money is great, but unless they remove the 'developer cap', none of this money will help purchase the Powerwall from Tesla directly.

 

[GenSao]

More money is great, but unless they remove the 'developer cap', none of this money will help purchase the Powerwall from Tesla directly.

Agreed.

Reading the text of the law, there is nothing explicit about a "developer cap". It is the California PUC which will determine the rules. There are some kinks that need to be worked out.

 

[GenSao]

It's official:... SB 700: "Approved by Governor September 27, 2018. Filed with Secretary of State September 27, 2018."

Now to convince the PUC to increase the allowance or eliminate the developer cap.

 

[GenSao]

A followup to this post.

On August 1, 2019, the California PUC Commission approved the SGIP GHG Proposed Decision (Rev. 1) by a 5 0 vote. D.19 08 001 modifies Green House (GHG) reduction requirements for new commercial and residential projects (submitted on or after April 1, 2020), and legacy projects (submitted prior to April 1, 2020).

Per the August 16, 2019 SGIP 2019 3Q Workshop regarding residential projects:

New Residential (projects submitted on or after April 1, 2020)

• All new residential systems must have a single-cycle RTE* (SCRTE) of at least 85%
• Enrollment in TOU rate with peak period at 4 pm or later and summer peak to off peak price differential of 1.69 or more is required (except CARE customers).
• PAs to file Tier 2 advice letter to request that eligible rates are approved for SGIP eligibility purposes.
• Non IOU residential customers have an obligation to produce documentation regarding their rates and operational data, if requested. Solar only charging or solar self consumption is required for customers that don't have access to SGIP approved rate.
• New residential fleet GHG emissions will be verified using annual impact evaluation reports.
• Infractions and/or suspensions will be issued for fleets that increase GHGs or do not report data in timely manner.

Residential Legacy (projects submitted prior to April 1, 2020)

• Eliminate the annual RTE requirement. Maintain 52 cycles/year.
• Requirement to reduce GHGs at the developer fleet level on an annual basis.

* round-trip efficiency (RTE) is defined as the total kWh discharge of the system divided by the total kWh charge over some period of time or number of cycles.

In regards to EVs, from Page 77 of the decision:

Tesla requested that the Commission allow electric vehicle (EV) customers to transition to or stay on any of the available EV-specific rates offered by their utility. Tesla contended that such rates present an economical rate for customers willing to charge during off-peak periods and encourage rapid EV adoption commensurate with California’s ambitious GHG emission reduction goals. At minimum, Tesla requested that current EV rates that meet the 1.69 price differential requirement be approved in this decision as well. These include SDG&E’s EV-TOU2 and EV-TOU5 rates, according to Tesla.

EV rates with summer peak to off-peak ratios of at least 1.69 meet our adopted criteria for SGIP-approved rates. The following EV rates have peak to off-peak price ratios of 1.69 and are adopted as SGIP-approved rates:

• PG&E EV-A and EV-B-Residential;
• SCE TOU-EV-1-Residential;
• SDG&E EV-TOU and EV-TOU-2-Residential; and,
• SDG&E EV-TOU-5.

The final decision has been modified to reflect this change.

I wonder how they (OSESMO modeling) determine the 1.69 price differential between summer peak and off-peak prices.

 

[miimura]

I wonder how they (OSESMO modeling) determine the 1.69 price differential between summer peak and off-peak prices.

The meaning of the 1.69 price differential is simple, the peak price is 1.69 times greater than the off-peak price or greater. However, I think you may have meant something else. This statement appears in the decision you linked:

TWG modeling showed that 100 percent of residential systems on a time-varying rate with a 1.69 or more differential between summer peak and off-peak periods, with a peak period starting at 4 pm or later, and with 85 percent SCRTE reduced GHG emissions.

In addition, the TWG report also observed that “the EV-A rate has sufficient differential between on-peak and off-peak costs to incent daily cycling, even in the winter. New TOU rates, with mid-day super off-peak periods and later onpeak periods, are more effective in this regard than older TOU rates with higher mid-day prices and lower evening prices, as long as there is a sufficiently-large differential between peak and off-peak rates.”63 Requiring an equivalent minimum differential between summer peak and off-peak periods, including super offpeak periods, will stimulate the off-peak charging and peak discharging behavior by residential SGIP customers necessary to ensure that all SGIP residential storage projects reduce GHG emissions.

The key point of the whole decision is that SGIP must be structured to reduce GHG emissions. So, the decision was undertaken to ensure that. In prior years, SGIP was shown to actually increase GHG in aggregate, so the program required modification in order to comply with the law.

 

[GenSao]

Miimura,

I understood the what the 1.69X difference was defined as.

To clarify, I was curious on the methodology on how the Open-Source Energy Storage Model (OSESMO) came up with the 1.69 multiplier. Why the flatter 1.69X? (vs. the current PG&E EV-A 3.93X Summer peak vs. Off-Peak and the 2.13X Summer peak vs. Part-peak.

Doing some searching, I found: Revised Self-Generation Incentive Program Greenhouse Gas Staff Proposal

The document is close; explains most of everything else except the multiplier. Interesting to see they used the a Tesla Powerwall as their standard Li-ion battery as part of the model per Page 39, slide 4. The model is available online.

 

[who177e]

Does anyone know if there will be additional funds that will be applied to Step 5 for PG&E since they are maxed out now?

 

[GenSao]

Does anyone know if there will be additional funds that will be applied to Step 5 for PG&E since they are maxed out now?

How additional funds for Step 5 and future allocations are distributed have not been determined yet.

Projects are currently placed on a wait list until funds are available. They are working on automating the wait list to to ensure consistency and transparency statewide. No projects will be cancelled or removed from waitlist if the developer assigned to the application has hit its developer cap

I anticipate any existing SGIP funds will be drawn down. New funds will not be available till likely the later of the following dates:

• April 1, 2020: Effective date of California PUC Decision D.19 08 001 and related changes.
• July 1, 2020, the new fiscal year when money is available.

Some funds will be relocated and the Equity Resiliency Budget will modifying qualifying requirements and Equity Budget incentives.

 

[Cheburashka]

Does anyone know if there will be additional funds that will be applied to Step 5 for PG&E since they are maxed out now?

I didn't realize this happened. Does this mean SGIP is no longer applicable to PG&E customers who are potentially installing powerwalls?

 

[Shygar]

I didn't realize this happened. Does this mean SGIP is no longer applicable to PG&E customers who are potentially installing powerwalls?

When I ordered mine in early 2017, they told me to not expect it. I ended up getting in Step 4 almost 2 years later. It goes by developer I think, so if you order it from a 3rd party, they may have a chance. But of course they're going to charge you for that.

 

[who177e]

When I ordered mine in early 2017, they told me to not expect it. I ended up getting in Step 4 almost 2 years later. It goes by developer I think, so if you order it from a 3rd party, they may have a chance. But of course they're going to charge you for that.

How additional funds for Step 5 and future allocations are distributed have not been determined yet.

Projects are currently placed on a wait list until funds are available. They are working on automating the wait list to to ensure consistency and transparency statewide. No projects will be cancelled or removed from waitlist if the developer assigned to the application has hit its developer cap

I anticipate any existing SGIP funds will be drawn down. New funds will not be available till likely the later of the following dates:

• April 1, 2020: Effective date of California PUC Decision D.19 08 001 and related changes.
• July 1, 2020, the new fiscal year when money is available.

Some funds will be relocated and the Equity Resiliency Budget will modifying qualifying requirements and Equity Budget incentives.

@GenSao
If Tesla has reached its developers cap how to get on the waitlist for step 5 if I'm using tesla for a 2 PW install?

 

[israndy]

Cannot you just be your OWN developer? You file the paperwork for yourself and submit the receipts from whoever you bought the battery from?

SGIP |

 

[NathanielHrnblwr]

noob here. forgive what is likely elementary questions. Does developer = manufacturer or installer? I spoke to a 3rd party installer about PW and mentioned SGIP. They state they fill out the forms and send them in but have no idea if there will be funding available so basically "Don't count on it as far as your budgeting goes, but if you get it, great."

I then mentioned that apparently Tesla is maxed out for SGIP but third parties may still have room in their cap. He was confused and stated others have mentioned this cap, but he had no knowledge of this and they install quite a bit of solar and PW. They never were allocated or applied for any "cap space" for lack of a better term. I linked to the Tesla energy page that shows the data for him to review. He suggested contacting the CSE for clarification for my area.

SGIP is less than straightforward, IMHO.

 

[GenSao]

I didn't realize this happened. Does this mean SGIP is no longer applicable to PG&E customers who are potentially installing powerwalls?

As pretty much all PG&E funds for SGIP are exhausted (per program website), there is no money for batteries (including Tesla Powerwall) until the funds are replenished. See below SGIP program metrics page.

Funds may be replenished on April 1, 2020 (effective date of new SGIP rules) or July 1, 2020 (Start of Fiscal Year 2020/2021). Funds may be available sooner depending on how/when they relocate the unspent funds.

@GenSao
If Tesla has reached its developers cap how to get on the waitlist for step 5 if I'm using tesla for a 2 PW install?

Unclear at this time. You are welcome to contact Tesla directly.

Once funds are replenished, I imagine Tesla will prioritize existing customers in their existent wait list. Since Tesla is likely oversubscribed, the odds of getting SGIP with Tesla is very low. Installers are limited by the 20% developer cap for each step.

Note, you do not have to go with Tesla directly. Any other developer (3rd party installer) may install Tesla Powerwall and qualify for the SGIP. Unfortunately, they tend to mark up the cost so they effectively get the lion share of the SGIP rebate.

Cannot you just be your OWN developer? You file the paperwork for yourself and submit the receipts from whoever you bought the battery from?

SGIP |

You may go this route, but it is a lot of work and likely not worth your time. @SoundDaTrumpet and others documented documented experience in this thread.

noob here. forgive what is likely elementary questions. Does developer = manufacturer or installer? I spoke to a 3rd party installer about PW and mentioned SGIP. They state they fill out the forms and send them in but have no idea if there will be funding available so basically "Don't count on it as far as your budgeting goes, but if you get it, great."

I then mentioned that apparently Tesla is maxed out for SGIP but third parties may still have room in their cap. He was confused and stated others have mentioned this cap, but he had no knowledge of this and they install quite a bit of solar and PW. They never were allocated or applied for any "cap space" for lack of a better term. I linked to the Tesla energy page that shows the data for him to review. He suggested contacting the CSE for clarification for my area.

SGIP is less than straightforward, IMHO.

Developer = installer.

Depending on the installer you talk to, they may be small enough to not be subject to the 20% developer cap. See below thumbnail of current residential storage statewide developer cap for Steps 2 through 5.



Note, there is also a utility allocation that most other utility regions are maxed out at. Tesla may have some leeway in SGE territory as they are the only region that is still open for SGIP applications.

 

[SoundDaTrumpet]

Cannot you just be your OWN developer? You file the paperwork for yourself and submit the receipts from whoever you bought the battery from?

SGIP |

AFIK... no, not anymore. Only ~11 self-developers in the state of California succeeded in Step 2. "Self-developers" did everything from scratch and were accepted by a 3rd party SGIIP evaluators to have satisfied the criteria for SGIP. The utilities who put the SGIP into action had different interpretations of the rules set by CPUC (utility commission providing oversight of the 4+ utilities in California). Rules changed after funds were committed to bar homeowners acting as developers and subcontracting the installation to battery suppliers such as Tesla.

 

[abasile]

Once funds are replenished, I imagine Tesla will prioritize existing customers in their existent wait list. Since Tesla is likely oversubscribed, the odds of getting SGIP with Tesla is very low. Installers are limited by the 20% developer cap for each step.

Tesla installed our Powerwalls in March 2018 and I don't expect we'll receive anything from SGIP, unless perhaps the rules change to allow rebates for systems installed more than one year prior. Even then, I wouldn't count on Tesla to go back and apply on behalf of "old" customers. I'm glad we already have the Powerwalls installed, though, given the possible changes in building codes and permitting.

 

[ElectricRed]

Looking at the wording of the SGIP 2019 handbook, section 2.3.6

2.3.6 Wait List and Program Closure
Once funds have been fully allocated in the final incentive step of a Program Administrator’s given budget, applications will be placed on a wait list to be funded as incentive funds become available throughout the remainder of the program. When there is enough attrition to fund wait-listed projects, wait listed projects will be assigned an incentive rate in the last step and reviewed in the order in which they were submitted. In the event that there are available funds and all wait-listed projects have been allocated funding, new applications will be subject to normal program procedures specified in Section 2.1. Program Administrators may continue accepting new applications until all incentive funds have been fully paid or until December 31, 2020, whichever comes first.
​

Does this mean everyone on Step 5 (the final step) wait-list will be funded without going through the lottery next year when the SB700 money becomes available; and after all the wait-list projects have been funded, they'll go back to the lottery system (Section 2.1)?

If this is true, finding someone who will do an 2PW install for about $22k will end up paying under $10k for two ($22k - $6.6 ITC - $5,800 SGIP) .