California Commission Revises Self-Generation Incentive Program to Boost Resiliency

The California Public Utilities Commission approved $108.5 million in additional funding for the Self-Generation Incentive Program’s “Equity Budget,” to support energy storage installations for disadvantaged or low-income communities.

The decision transfers funds to the Equity Budget from the funding allotted for general large-scale projects installed by customers that are not in the low-income or disadvantaged category.

The commission also revised the Equity Resiliency Budget, which is designed to provide incentives for certain customers in high fire threat districts and customers affected by at least two utility power shutoff events. This initiative, which supports customers relying on electric well pumps for their water supply, has been much higher than anticipated. To ensure that the limited funding can be availed by customers with the greatest need, such as medically vulnerable residents and critical facilities, the revisions require potential participants to demonstrate that they belong to the low-income group or that the multifamily building is located in a disadvantaged community.

In January, the commission approved $830 million in new funding for the Self-Generation program, prioritizing energy storage projects for communities most impacted by utilities’ public safety power shutoff events to avoid the risk of power lines starting wildfires. When added to unspent funds from previous years, the decision allocates a total of $1.2 billion in incentives for distributed energy resources under the program. The decision also extends eligibility to customers affected by at least two prior shutoff events. The agency approved an annual budget of $166 million for 2020-2024 period, for a total of $830 million.

The program, adopted in 2001 to incentivize distributed resources and reduce power demand, has been revised multiple times. In 2016, the legislature authorized the commission to double the collections to $166 million per year through 2026. The agency allocates 85 percent of the funds to battery technologies.