Amid huge wildfires, rolling blackouts and the continued menace of large-scale grid outages, California is shifting greater than $100 million of its $1.2 billion Self-Era Incentive Program price range to assist low-income communities set up about 100 megawatts of stalled behind-the-meter battery initiatives.
The shift received’t faucet the $613 million in SGIP funds earmarked for low-income and medically susceptible clients at highest danger of fire-prevention energy outages. As an alternative, Thursday’s determination from the California Public Utilities Fee will shift $108.5 million from SGIP’s under-subscribed large-scale storage price range. That cash will assist fund among the $306 million in initiatives in low-income and deprived communities that utilized for SGIP funds this 12 months, purposes that outstripped the present $53 million “fairness price range” accessible to them.
That fairness price range affords incentives of 85 cents per watt-hour for installations of as much as 30 kilowatts of energy capability, greater than SGIP’s basic incentive classes — a important piece to creating initiatives cost-effective. Extra broadly, SGIP funds have fueled a lot of the greater than 400 megawatts of business and residential behind-the-meter batteries put in in California thus far, in accordance with Wooden Mackenzie information.
The California Vitality Storage Alliance (CESA) and storage distributors together with Stem have pushed to fund waitlisted initiatives on the grounds that many are equally at menace of fire-prevention outages as these deemed eligible for the bigger $613 million price range.
Since 2018, a whole bunch of hundreds of Pacific Fuel & Electrical clients and tens of hundreds of Southern California residents have skilled blackouts as utilities de-energize energy grids to forestall them from sparking wildfires.
CESA’s submitting with the CPUC highlighted unfunded initiatives together with a hospital and a wastewater remedy plant inside a mile of high-fire-threat districts, in addition to colleges that suffered outages final 12 months however aren’t eligible below the CPUC’s “important facility” standards.
CESA and Stem had initially requested for an additional $150 million to be drawn from the $613 million “equity-resiliency” price range, which is restricted to a narrowly outlined class of shoppers most threatened by fire-prevention outages. That program, which affords a $1-per-watt incentive that covers virtually your complete upfront price of battery installations, has been closely tapped in PG&E territory, with its price range of $270 million all the way down to a mere $22,700 remaining as of this week.
PG&E, which emerged this 12 months from a 2019 chapter attributable to tens of billions of in liabilities associated to wildfires began by its energy grid failures, applied widespread fire-prevention shutoffs final 12 months. This 12 months’s fireplace season has introduced extra public-safety energy shutoffs from PG&E, together with the potential for outages throughout the San Francisco Bay Space this weekend.
The state’s different investor-owned utilities, which haven’t been pressured to de-energize their grids on the identical scale as PG&E, have seen much less demand for the fire-threatened SGIP incentives, and nonetheless have a collective $200 million accessible.
CPUC’s determination to earmark greater than half of SGIP’s price range for equity-resiliency clients has been controversial. California Sen. Scott Wiener, writer of the 2018 legislation that elevated SGIP’s price range via 2024, accused the fee of undermining this system by creating eligibility guidelines “so restrictive” that the funds for it should “virtually definitely be under-utilized.”
However others have championed the carve-out for fire- and blackout-vulnerable clients. Grid Alternate options, a nonprofit that installs photo voltaic and batteries for low-income residents, demanded that the CPUC protect the funds. Residential photo voltaic installer Sunrun has labored with Grid Alternate options to supply free batteries to eligible clients, its first strikes into putting in standalone batteries with out accompanying rooftop photo voltaic techniques.