With California’s rising energy costs, frequent blackouts, and the rollout of the new NEM 3.0 solar billing system, home battery storage has become more essential than ever. But with price tags that can reach $15,000 or more, adding a battery to your solar setup isn’t always affordable — unless you take advantage of California’s Self-Generation Incentive Program (SGIP).
In 2024, SGIP is back with fresh funding and bigger rebates than ever before. Whether you’re a homeowner looking for blackout protection or part of a low-income community eligible for free battery installations, SGIP can help you slash thousands off the cost of battery storage — and pair it with a 30% federal tax credit for even more savings.
Let’s break it all down:
What is the SGIP Rebate?
The Self-Generation Incentive Program (SGIP) is a California Public Utilities Commission (CPUC) rebate that reimburses homeowners and businesses for installing battery energy storage systems. It applies whether your battery is installed with solar or as a standalone backup solution.
It’s designed to:
- Support California’s transition to clean energy
- Reduce strain on the power grid
- Help families store solar power for nighttime use
- Provide backup during Public Safety Power Shutoffs (PSPS)
How Much Is the SGIP Rebate?
As of late 2024, SGIP rebate amounts are tiered based on need and system size:
| Rebate Tier | Amount per kWh | Who Qualifies? |
|---|---|---|
| Small Residential | $150/kWh | Homes with ≤10 kWh systems |
| Large-Scale Residential | $250/kWh | Homes with >10 kWh systems |
| Residential Equity | $850/kWh | Low-income/disadvantaged communities |
| Residential Equity Resiliency | $1,000/kWh | High-risk fire areas, medical needs, PSPS-impacted |
For example:
- A 13.5 kWh Tesla Powerwall under Large-Scale Residential:
→ $3,375 rebate - Same battery under Equity Resiliency:
→ $13,500 rebate — potentially covering 100% of your cost!
Do You Qualify for a Higher Rebate Tier?
You may qualify for Residential Equity or Equity Resiliency if you meet income, health, or geographic criteria. Here’s a quick breakdown:
Residential Equity – $850/kWh:
- Household income ≤80% of area median
- Enrolled in CARE, FERA, ESA, SASH, DAC-SASH, SOMAH, or MASH programs
Residential Equity Resiliency – $1,000/kWh:
- Located in Tier 2/3 High Fire Threat District
AND - Enrolled in Medical Baseline Program, rely on electric pump water supply, or had ≥2 PSPS shutoffs
It takes some documentation — but the savings are massive.
How to Apply for the SGIP Rebate
Don’t worry: you won’t need to fill out forms yourself (unless you want to). Your installer typically submits everything for you.
SGIP Rebate Process:
- Submit Reservation Request (your installer does this)
- Receive Confirmed Reservation Letter
- Install your battery system
- Submit Incentive Claim Form
- Possible site inspection
- Rebate payment issued (sent to installer or customer)
Installers who are familiar with SGIP will handle the process seamlessly — just make sure they’re SGIP-approved.
How Much Can You Actually Save?
Let’s run a real example:
You’re installing a 13.5 kWh Tesla Powerwall 3
Retail cost (with install): $16,000
With SGIP Large-Scale Residential rebate:
- 13.5 kWh × $250 = $3,375 rebate
Your post-rebate cost: $12,625
Then apply the 30% Federal Residential Clean Energy Credit:
- 30% of $12,625 = $3,787.50
Your final cost after all rebates: ~$8,840
You just saved nearly $7,200 on a top-tier battery.
Can You Get a Rebate Without Solar?
Yes! The SGIP rebate applies even if you install battery storage without solar — though combining both improves savings and energy independence.
SGIP FAQ
Q: Is SGIP still active in 2025?
A: Yes! New funds were added in 2024, but some rebate tiers may run out — apply early to secure your spot.
Q: How long does it take to get paid?
A: It can take several months post-installation, depending on inspections and paperwork.
Q: Can renters apply?
A: Yes, if working with landlords in qualified buildings. Tenants can benefit from shared systems.
Q: Can I combine SGIP with other rebates?
A: Yes! SGIP stacks with the 30% federal tax credit and sometimes local utility incentives.
Final Thoughts: Why You Should Act Now
The SGIP battery rebate is one of the most generous clean energy incentives in the U.S., especially for low-income and fire-threatened communities.
With grid outages, higher time-of-use electricity pricing, and reduced solar export credits under NEM 3.0, installing a battery:
- Boosts solar savings
- Provides reliable backup power
- Increases energy independence
You could pay half (or less) for a battery system that keeps your lights on during blackouts — but SGIP funds are limited and available on a first-come, first-served basis.
Ready to see what you qualify for?
Talk to a vetted battery installer or SGIP-approved Energy Advisor to check your rebate eligibility and get a custom savings estimate today.
