2004 Handbook and Forms
The 2004 SGIP Program qualifications are further down this page.
2004 SGIP Qualifications
Use the following links to see details of the 2004 SGIP qualification process:
The program will continue to accept applications through January 1, 2008. Incentive funding is offered on a first-come, first-served basis for each calendar year of the program's duration. Unspent program funding for a given program year will be used to provide incentives in the following program year.
Applicants who completed projects prior to the program launch date may be eligible to apply to the program retroactively. Projects involving Level 1 technologies with a completion date on or after January 1, 2001 are eligible to apply for retroactive incentive funding under this program. Level 2 and 3 technologies with a completion date on or after March 27, 2001 are eligible to apply for retroactive incentive funding under this program.
For purposes of retroactive eligibility, the "completion date" is the date the applicant receives an authorization from SCE to operate its self-generation equipment in parallel with the utility's electric system.
Any retail customer of SCE that purchases electricity from the grid is eligible to apply for and receive incentives from this program. Service providers, including, but not limited to, engineers, installing contractors, equipment distributors or energy service companies are also eligible to apply for incentives on behalf of the utility customer, provided consent is granted in writing by the customer. Equipment lessees or lessors are also eligible to participate in the program.
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The host customer is the SCE retail customer of record at the site where the generating equipment is or will be located. Any class of retail customer (industrial, agricultural, commercial or residential) is eligible to be a host customer in this program. The host customer site must be located in the service territory of, and receive service from, SCE. The host customer may also be the applicant if they are representing themselves.
The following host customers or host customer loads are not eligible for SGIP incentives:
- Customers who have entered contracts for Distributed Generation (DG) services, either installed as a distribution upgrade or as a replacement deferral, and who are receiving payment for those services.
- Any portion a of customer's load that is committed to electric utility interruptible, curtailable rate schedules, programs or any other state agency-sponsored interruptible, curtailable, or demand-responsiveness program.
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The self-generating equipment must serve on-site electrical load. Only self-generation equipment installed on the customer's side of the utility meter is eligible. Equipment must be sized to serve all or a portion of the electrical load at the customer site. Exceptions are photovoltaic and wind systems, which may be installed with capacities of up twice the site's annual peak demand. Back-up generators do not qualify. Diesel generation of any kind also does not qualify.
Self-generation technologies eligible for this incentive program are grouped into three levels (Level 1, Level 2, and Level 3) as shown in the following paragraph. Level 3 is comprised of two categories, a renewable category (Level 3-R) and a non-renewable category (Level 3-N).
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Level 1
- Photovoltaics
- Fuel cells operating on renewable fuel
- Wind turbines
Level 2
- Fuel cells operating on non-renewable fuel and utilizing waste heat recovery
Level 3
- Level 3-R (Renewable fuel)
- Micro-turbines
- Internal combustion engines
- Small gas turbines
- Level 3-N (Non- renewable fuel)
- Micro-turbines
- Internal combustion engines
- Small gas turbines
All Level 3-N generators must utilize waste heat recovery and meet CPUC mandated reliability criteria.
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Hybrid Systems
Any system that contains more than one type of technology at one host customer site is considered a "hybrid system" and is eligible for program incentives. This can include two or more of the technology incentive levels. For example, a photovoltaic and a micro-turbine hybrid system installed at a single site may receive incentives as long as they meet all program eligibility requirements. See the program handbook for an explanation of how to calculate incentives for hybrid systems.
Equipment Certifications
This program intends to provide incentives for reliable, safe systems that are professionally installed and comply with all applicable federal, state and local regulations. Applicants and host customers are strongly encouraged to become familiar with applicable equipment certifications and installation standards for the systems they are contemplating.
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Minimum and Maximum Size
For Level 1 technologies, the minimum system size is 30 kW. There are no minimum size criteria for Level 2 and 3 technologies. For Level 1, 2 and 3 technologies, the maximum system size is 1.5 MW, however, incentives are only paid on up to 1 MW of capacity.
With the exception of photovoltaic and wind technologies, the system's rated electrical output cannot exceed the annual peak demand of the customer site. Photovoltaic and wind systems may have a rated output of twice the customer site's annual peak demand. Confirmation of system size is required in the application. Applicants must provide an engineering forecast of the host customer site's annual peak demand if the generating system is sized to accommodate future load growth, whether due to facility expansion or other causes.
Rating Criteria for System Output
The rated photovoltaic system capacity must be calculated using PVUSA Test Conditions (PTC) rating standards, less inverter losses. Wind turbine capacity is the highest electrical output from the manufacturer's power output curve for wind speeds of 30 mph or less and must also net out inverter losses. The generation capacity for Level 2 and 3 technologies, as well as fuel cells utilizing renewable fuel in Level 1, is defined as the net power output of the equipment at appropriate ISO conditions for continuous output.
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Utilization of waste heat recovery at the customer site is required for Level 2 and 3-N systems. Overall, system efficiency must meet the requirements of Public Utilities Code218.5 (PDF). All applications for Level 2 and 3-N technologies must demonstrate a reasonable ability to meet the minimum conversion efficiencies stated above including an engineering calculation of the conversion efficiency with documented assumptions regarding thermal load at the site.
Reliability Criteria
In order to qualify for incentives, CPUC regulations require that Level 3-N technologies must make a demonstrable contribution to the reliability of the electric transmission and distribution system. The CPUC Energy Division has developed the following reliability criteria effective in program year 2002:
- The self-generating facility must be designed to operate in a power factor mode such that the generator operates between 0.95 power factor lagging and 0.90 power factor leading. This design feature will be verified by reviewing the manufacturer's specifications at the time of application.
- Applicants with facilities sized greater than 200 kW will coordinate the self-generation facility planned maintenance schedule with the electric utility. This may allow the utility to more accurately schedule load and plan distribution system maintenance. The applicant will only schedule a facility's planned maintenance between October and March and, if necessary, during off-peak hours and/or weekends during the months of April to September.
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