SELF-GENERATION INCENTIVE PROGRAM (SGIP)
description
Transcript of SELF-GENERATION INCENTIVE PROGRAM (SGIP)
SELF-GENERATION INCENTIVE PROGRAM
(SGIP)
Website: www.socalgas.com/business/selfgenEmail: [email protected]
January 2005
Summary
The intention of this presentation is to provide viewers a general understanding of the program,
For more specific information, viewers should visit the website and download the SGIP Handbook.
Overview SGIP is a statewide program, initiated by
Assembly Bill 970 and modified in 2004 by AB1685.
Provides incentive funding for distributed generation technologies, including: Micro-turbines Photovoltaic (solar power) IC engine generators Fuel cells Wind turbines
Overview SGIP was originally a four year
program (2001 - 2004), then was extended thru 2007.
Incentives reserved up to 12 months Reservations granted first come, first
served No Double-Dipping:
Single projects are not allowed to receive incentives from more than one source: SCE, SoCalGas, PG&E, SDREO or CEC.
Overview
Four administrators: SoCalGas Southern California Edison (SCE) Pacific Gas & Electric (PG&E) San Diego Regional Energy Office
(SDREO)
Who is Eligible?
Customers of SoCalGas, SCE, PG&E, SDG&E (IOUs)
ESCO’s, with clients (at host sites above)
Customers served by both municipal utility and IOU: LADWP & SoCalGas IID and SoCalGas
Incentives Incentives are based technology &
Incentive Level: Level 1, Level 2, Level 3R, Level 3N Levels defined on following pages Each Level has its own funding limits
Incentives are based on: $/kw basis Incentive funding from other sources
may reduce the SGIP incentive (see Handbook for further details)
Incentives – Level 1
Incentive Levels
Eligible Technologies
Incentive Offered ($/Watt)
Minimum System Size
Maximum System Size
Maximum Incented System Size1
Level 1 Renewable fuel
cells $4.50/W 30 kW 5 MW 1 MW
Level 1 Photovoltaics $3.50/W 30 kW 5 MW 1 MW
Level 1 Wind Turbines $1.50/W 30 kW 5 MW 1 MW
Up to 25% of fuel may by be Non-Renewable (fossil f uel). Data measured, collected & reported to CPUC every 6 months.
1 Maximum system size is 5 MW, however, output capacity above the first 1 MW is not eligible for incentives.
Reference CPUC Decision 04-12-045 dated December 16, 2004.
Incentives – Level 2
Incentive Levels
Eligible Technologies
Incentive Offered ($/Watt)
Minimum System Size
Maximum System Size
Maximum Incented System Size
Level 2 Non-Renewable
fuel cells $2.50/W None 5 MW 1 MW
1. These technologies must install waste heat recovery. 2. These technologies must meet a set of reliability criteria requirements.
Incentives – Level 3-R(Renewable Fuel)
Incentive Levels
Eligible Technologies
Incentive Offered ($/Watt)
Minimum System Size
Maximum System Size
Maximum Incented System Size
Level 3-R Renewable fuel micro-turbines
$1.30/W None 5 MW 1 MW
Level 3-R Renewable fuel IC engines and Large
gas turbines $1.00/W None 5 MW 1 MW
1. Up to 25% of fuel may by be Non-Renewable (fossil f uel). Data measured, collected & reported to CPUC every 6 months.
Incentives – Level 3-N (Non-Renewable Fuel)
Incentive Levels
Eligible Technologies
Incentive Offered ($/Watt)
Minimum System Size
Maximum System Size
Maximum Incented System Size
Level 3-N Non-renewable &
waste gas fuel micro-turbines
$0.80/W None 5 MW 1 MW
Level 3-N
Non-renewable & waste gas fuel IC engines and Large
gas turbines
$0.60/W None 5 MW 1MW
1. These technologies must install waste heat recovery and meet emission criteria. 2. These technologies must meet a set of reliability criteria requirements.
Project Eligibility
Eligible Equipment/site connected to the grid Offset a portion, if not all, of site’s
electric load Must serve on-site electric load
Not Eligible Wheeling electricity Sites with interruptible electric service Over the fence applications
Equipment Eligibility Eligible
Equipment must be new and permanent
Projects < 5,000 kW Customer’s side of
the utility meter
Not Eligible Demonstration units Backup generation
equipment Equipment intended
to wheel power Diesel fired
equipment Thermal load
equipment Absorption chillers Thermal storage Batteries
Other Incentive Funding Funding from only 1 SGIP Administrator
per project allowed Combined incentive cannot exceed out-of-
pocket expenses Funding is allowed from other programs,
however the SGIP incentive shall be reduced When other incentives are involved, the SGIP
incentive will be reduced by the following percentage:
Level 1 50%Level 2 60%Level 3-R 60%Level 3-N 70%
Incentive Example
Assumptions: Level-1, 80 kW, PV Other funding - $80,000 (80 kW/ $80,000 = $1.00/W)
Incentive by kW: Other funding = $1.00/W Reduction of SGIP Incentive = 50% of $1. 00 = $0.50 Incentive - $3.00/W (SGIP - $3.50 less $0.50) + $1.00 (other) = $4.00/W
The Funding Process
Steps by Applicant / Host
Steps By SoCalGas (Administrator)
Step 1 - Applicant Submitting an Application
Complete Reservation Request Form with original signatures
System description SoCalGas bill Electric utility bill w/ peak kW Estimated installed cost Sizing calculations Spec Sheets If applicable –
Waste heat calculations Reliability criteria Renewable Fuel Report Waste gas Report
Step 2a - SoCalGas
SoCalGas reviews application package for: Completeness No Double-dipping Customer status Sizing Overall eligibility
Step 2b - SoCalGas
Completed applications receive Conditional Reservation Letter to Applicant stating: Reservation # Funding amount 60-Day Project Advancement Date Project Completion Date Project size & technology Project location
Step 2c – SoCalGas
Incomplete applications: Request additional / missing
documentation
Applications not meeting eligibility requirements receive letter denying access to the program
Step 3 - Applicant
60-Day Project Advancement submittals:
Proof of: Air quality permit application Utility interconnect application P.O. or contract for major equipment
Project Cost Breakdown Standard SGIP Contract with original
signatures Certificates of insurance – (Host & Applicant) Renewable Fuel Affidavit (if applicable) Waste Gas Affidavit (if applicable)
Step 4 - SoCalGas
Review of 60-Day Project Advancement documents
Incomplete: documents will be requested by Administrator
Complete: Administrator mails letter confirming reservation
Step 5 - Applicant App./Host submits Claim Form with:
AQ permit to operate (if applicable) Letter from utility authorizing host to parallel Final building inspection report Final Project Cost Breakdown & Affidavit Proof of Payment Proof of Warranty AQ District Determination of net benefit (3-W) Substantiation of Load (future load projects) Planned Maintenance Letter (L-3 > 200kW)
Step 6 - SoCalGas SoCalGas reviews Claim Form package
for completeness Incomplete: documents will be requested
by Administrator Complete: schedule a site inspection for
verification Check is sent to Applicant/Host after site
verification and Claim Package has been certified
More Information?
Go to: www.socalgas.com/business/selfgen/ Program Handbook Forms Instructions Spreadsheets
Project Cost Breakdown Waste heat analysis
E-mail: [email protected]
Questions? Questions can be emailed to: