SELF-GENERATION INCENTIVE PROGRAM (SGIP) by djz44927

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									  SELF-GENERATION
 INCENTIVE PROGRAM
       (SGIP)

Website:   www.socalgas.com/business/selfgen
Email:     selfgeneration@socalgas.com

           January 2006
    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 and SoCalGas
       IID and SoCalGas
    Incentives
   Incentives are based technology &
    Incentive Level:
       Level 1, Level 2, and Level 3
       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   Minimum               Maximum
Incentive   Eligible          Offered     System  Maximum       Incented System
Levels      Technologies      ($/Watt)    Size    System Size   Size1


  Level 1     Photovoltaics    $2.80/W     30 kW       5 MW          1 MW
Incentives – Level 2
(Renewable Fuel & Wind)
                                    Incentive    Minimum                        Maximum
Incentive     Eligible              Offered      System  Maximum                Incented System
Levels        Technologies          ($/Watt)     Size    System Size            Size

                Renewable fuel
  Level 2                            $4.50/W       30 kW           5 MW               1 MW
                    cells



  Level 2        Wind Turbines       $1.50/W       30 kW           5 MW               1 MW



                Renewable fuel
  Level 2      micro-turbines and    $1.30/W       None            5 MW               1 MW
               small gas turbines

               Renewable fuel IC
  Level 2      engines and Large     $1.00/W       None            5 MW               1 MW
                  gas turbines

1. Small Gas Turbines are defined as gas turbines < 1.0 MW
2. Up to 25% of fuel may by be Non-Renewable (fossil fuel). Data measured, collected & reported to
   CPUC every 6 months.
        Incentives – Level 3
        (Non-Renewable Fuel)

                                      Incentive    Minimum                          Maximum
Incentive       Eligible              Offered      System  Maximum                  Incented System
Levels          Technologies          ($/Watt)     Size    System Size              Size

                  Non-Renewable
     Level 3                           $2.50/W        None            5 MW                1 MW
                    fuel cells


                 Non-renewable &
     Level 3       waste gas fuel      $0.80/W        None            5 MW                1 MW
                 micro-turbines and
                 small gas turbines
                 Non-renewable &
     Level 3     waste gas fuel IC     $0.60/W        None            5 MW                1MW
                 engines and Large
                    gas turbines
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                     Not Eligible
       Equipment must be            Demonstration units
        new and permanent            Backup generation
       Projects < 5,000 kW           equipment
                                      Equipment intended
        Customer’s side of
                                  
    
                                      to wheel power
        the utility meter
                                     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     100%
                      Level 2     50%
    Incentive Example
   Assumptions:
     Level-1, 80 kW, PV
     Other funding (from LADWP) - $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 - (SGIP - $2.80/W less $0.50) + $1.00

      (other) = $3.30/W
    The Funding Process

   Steps by Host/System Owner

   Steps By SoCalGas (Administrator)
    Step 1 – Host/System Owner
   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
          Incentive Calculation Worksheet
          Spec Sheets
          If applicable –
               Waste heat calculations
               Reliability criteria
               Renewable Fuel Report
               Waste gas Report
               Information on other Funding Sources
    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
       20 Calendar Days to Sumbit or Aplication is
        Rejected


   Applications not meeting eligibility
    requirements receive letter denying
    access to the program
    Step 3 – Host/System Owner
   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 & System
          Owner)
         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 – Host/System Owner
   Host/System Owner 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 Host/System Owner 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: selfgeneration@socalgas.com
    Questions?
   Questions can be emailed to:
     selfgeneration@socalgas.com

								
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