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Over the last few months, like falling autumn leaves, local mailboxes have received a flurry of “Notice PG&E Customer” postcards that seem to be connected to Pacific Gas and Electric, but really aren’t.
These official-looking cards encourage homeowners to call for information regarding enrollment in the California Self-Generation Incentive Program (SGIP) to receive incentives for installing energy self-generating systems. Without doing this, the card claims, customers will “pay up to 37% more for electricity.”
However, as Tom Waits wrote, “the large print giveth and the small print taketh away.”
According to PG&E spokesperson Stephanie Magallon, SGIP really does exist, but the phone number on the card is not the correct one for the program.
And the suggestion that consumers’ bills will increase is not accurate. Instead, a consumer’s energy bill may go down by enrolling in the program but there’s no guaranteed percentage of savings.
“We caution customers against contractors promising specific savings amounts,” Magallon said “as actual savings are going to vary.”
While the postcard offers little detail, SGIP is a long-established state program that currently allows homeowners and renters to take advantage of rebates on home battery or solar systems.
“The objective here is for the state to pay for these systems to be installed in people’s homes,” Magallon said, “The goal is to improve wildfire safety and reliability, reduce energy costs for low-income families, and support clean energy planning.”
The SGIP initiative was established in response to the 2000-2001 California energy crisis, which caused widespread electrical outages across the state. It’s administered by the California Public Utilities Commission.
Originally designed to reduce peak-hour energy loads by encouraging on-site power generation, the program has since been amended to include a range of energy-generating and storage solutions. Over $1 billion has been allocated to it since its inception.
The rebates are based on where the application falls within the PUC’s three qualifying “buckets,” according to Magallon. Renters can apply with the property owner’s permission and cooperation.
The first bucket is for those earning less than 80% of San Benito County’s median family income. A person, for example, can earn up to $74,900 and a family of four is capped at $106,950.
The second bucket is based on “equity resiliency,” circumstances in which location is a factor in potential power loss due to emergencies. Examples include living in what’s known as a Tier 2 or Tier 3 High Fire Threat District, or in areas where power outages have occurred five or more times since Jan. 1, 2023.
The rebates for the first two buckets are based on several factors, including a very low income level or particularly high fire risk. These rebates can range up to 100% coverage. The third bucket is open to the general public—with no mitigating qualifications—and the rebate is a flat 15%.
The costs would depend on whether the system being installed was purchased outright or leased from a contractor.
All eligible customers must also participate in a “demand response” program, which provides incentives to reduce energy usage during periods of high demand or shift the usage to times of less critical demand.
PG&E offers two programs: Automated Response Technology, which includes features such as “smart” thermostats and electric vehicle chargers, and SmartRate, which offers a reduced rate when customers minimize electricity usage up to 15 days a year.
To join the program, Magallon said interested consumers must use a contractor from a state-approved list. That person, she said, would typically help customers work through the application process.
New applications, Magallon said, are automatically placed on a waitlist, as demand exceeds available funds. However, more funding is expected in March, which will move some applicants off the waitlist. There is no set expiration date for the program.
While there are savings to be had with the program, Magallon said the amount saved would depend on how much energy is being used and how much money is then saved on bills by the solution selected, whether it be a storage battery or a battery-and-solar installation.
“There’s a lot of different things to take into account,” Magallon said.
A good starting point, she said, is PG&E’s Self-Generation Incentive Program page and brochure, which details the offer. The Self-Generation Incentive Program Handbook is another useful resource.
BenitoLink thanks our underwriter, Pacific Gas and Electric Company (PG&E), for helping to cover alternative and innovative energy stories around San Benito County. Pacific Gas and Electric Company, incorporated in California in 1905, is one of the largest utility companies in the United States. All editorial decisions are made by BenitoLink.
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