Transcript Recommending a Strategy - Southern California Gas Company

SELF-GENERATION
INCENTIVE PROGRAM
(SGIP)
Website:
Email:
www.socalgas.com/business/selfgen
[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
Maximum
Size
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
$1.50/W
30 kW
5 MW
1 MW
 Up to 25% of fuel may by be Non-Renewable (fossil fuel). Data measured, collected & reported to
CPUC every 6 months.
Incentives – Level 2
Incentive
Levels
Level 2
Eligible
Technologies
Non-Renewable
fuel cells
Incentive
Offered
($/Watt)
$2.50/W
Minimum
System
Maximum
Size
System Size
None
5 MW
1. These technologies must install waste heat recovery.
2. These technologies must meet a set of reliability criteria requirements.
Maximum
Incented System
Size
1 MW
Incentives – Level 3-R
(Renewable Fuel)
Incentive
Levels
Eligible
Technologies
Incentive
Offered
($/Watt)
Minimum
System
Maximum
Size
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
$1.00/W
None
5 MW
1 MW
1. Up to 25% of fuel may by be Non-Renewable (fossil fuel). Data measured, collected & reported to
CPUC every 6 months.
Incentives – Level 3-N
(Non-Renewable Fuel)
Incentive
Levels
Eligible
Technologies
Incentive
Offered
($/Watt)
Minimum
System
Maximum
Size
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.
2.
These technologies must install waste heat recovery and meet emission criteria.
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

Proof of:








submittals:
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:
[email protected]