Frequently Asked Questions
(FAQs)

SGIP Subsidized Battery Program

Equity Resiliency and Medical Baseline

What is Medical Baseline?

Medical baseline is a cheaper rate schedule with the utility company for customers who have a medical need for electricity. In order to qualify for the highest SGIP rebate, Equity Resiliency Budget, homes must be in both a high fire zone and be on medical baseline. The rate is good for 2 years before a reapplication. Reapplying for medical baseline later is not required for the initial rebates. A copy of the medical baseline approval letter must be included with the SGIP application.

Do I need to reapply for medical baseline every 2 years?

Yes, typically, you need to reapply for the medical baseline or similar programs with your utility company every two years. This process ensures that the utility company has current information and can confirm that you still qualify for the program based on medical needs that require additional energy consumption at a lower cost. While failing to reapply will not affect any battery rebates you may have received, it will result in a decrease in your ongoing savings since the lower rates associated with the medical baseline program will no longer apply. Some utilities might also request updated certification from a healthcare provider as part of the reapplication process. Policies can vary by utility company, so it’s important to check with your specific provider for their requirements and deadlines.

Why do I need a medical appointment?

To receive the equity resiliency rebate, homeowners must be in a fire zone and have the medical baseline rate with the utility company. Most utility companies require a doctor to sign off on the application. Customers who already have medical baseline must still have a current doctor’s note justifying the medical baseline rate in the SGIP application.

What will be discussed during my medical appointment?

The doctor’s appointment is conducted virtually and typically lasts between 10-15 minutes. During this visit, the doctor will verify any ailments and medical devices that qualify the homeowner for the medical baseline rate. No proof of diagnosis is necessary for this process.

Is my information confidential?

All personal information is kept confidential and will only be shared with Southern California Edison (SCE) for the purpose of applying for the medical baseline rate. No medical information from previous doctors will be disclosed. RUME Health and its partners will only have access to the information you provide during your consultation. You are under no obligation to continue using RUME Health for any future medical needs.

Rebates, Credits, and Costs

What is SGIP?

The Self Generation Incentive Program (SGIP) in California is a financial incentive program designed to promote the installation of distributed energy resources. It offers rebates for qualifying technologies including energy storage systems and renewable energy generation. The program aims to reduce greenhouse gas emissions, improve grid reliability, and support energy generation at the point of use. Funded by ratepayers of large California utilities, SGIP is available to residential and non-residential customers in California to help offset the cost of installing clean energy technologies.

How is it possible to be free?

RECAP (Renewable Energy Credit Advancement Program) enables the monetization of tax credits and SGIP rebates, which are then paid directly to the installer and developer. These rebates and credits typically cover both the hard and soft costs associated with the battery installation, ensuring profitability for all parties involved. Through this arrangement, the batteries are effectively paid for through state and federal rebates, though the financial burden does not fall on the homeowner. As of June 4, 2024, all SGIP applicants must enroll with a demand response program with their utility company before the rebates can be paid out. This ensures that the batteries will not only benefit the individual homeowner, but will also help reduce overall grid reliance.

Can I apply for the SGIP rebates myself?

Yes, you can apply for the SGIP rebate yourself, but it’s important to understand that the application process is extremely complex. It involves detailed engineering calculations and requires an active identification number registered with SelfGenCA, the program’s administrator. Additionally, applying on your own might require you to pay upfront costs, which are later offset by the rebate received on the backend. It’s also crucial to note that these rebates are considered taxable income. Allowing professionals to handle the application and directly receive the rebates is often the most optimal and cost effective method for customers, ensuring all technical and regulatory requirements are met without the upfront financial burden.

Are there any hidden costs?

No. In most instances, the SGIP rebate and tax credits are sufficient to cover the entire cost of the project. On the rare occasion that the total costs exceed the rebates, the project will be cancelled unless the customer opts to pay the additional amount.

What are the tax implications for me?

Since the battery system is technically owned by HDM and only transferred to the homeowner after full depreciation, there are no tax implications for the homeowner. Additionally, as the rebates are paid directly to the installer and developer, the homeowner will not owe any taxes on these amounts. Additionally, the battery will not affect any existing solar tax credits.

How long are the rebates good for?

As long as we receive the reservation request, we have a whole year to complete the project from reservation request approval, and the rebates will still be honored. The reservation request guarantees the rebates for the project.

What is a demand response program?

The Self-Generation Incentive Program in California requires all participants to enroll in a Qualified Demand Response Program through their utility. Demand response programs encourage customers to reduce their electricity consumption during infrequent times of high demand to help manage the states electricity supply. These programs also offer additional financial incentives to encourage customers to reduce consumption during these high demand times. The batteries allow homeowners to continue supplying power to their homes during these times with no interruption and simultaneously reduce consumption and pressure on the grid. Before your install can be scheduled you must enroll so the SGIP rebates can be ensured and the project can be funded. One of our representatives will reach out in assisting you to enroll before your project is underway.

Equipment

What are the warranties?

The battery system comes with a 10-year manufacturer’s warranty. Additionally, HDM (the current owner of the system) is contractually obligated to provide a warranty for the first 6 years. After this period, system ownership will be transferred to the homeowner, along with the remaining manufacturer’s warranty.

How long does it take to get my batteries?

Receiving approval for the medical baseline rate can take up to a month, and securing SGIP funds approval may require an additional 2-4 months. Once these funds are approved, projects will be permitted and installation will be scheduled on a first-come, first-served basis. Due to high demand, and the length of time to receive the rebate reservation, we cannot guarantee a specific timeline for installation. Batteries will be shipped directly to the home 3-5 days before installation.

How will batteries save me money?

Batteries can save you money through time-of-use (TOU) arbitrage by storing electricity when rates are low and using it when rates are high. Typically, utility companies charge more for electricity during peak demand hours, usually in the late afternoon and early evening. By charging your battery system during off-peak hours when electricity is cheaper, and discharging it during peak hours, you can avoid paying higher rates. This strategy not only reduces your electricity bill but also enhances energy efficiency and can provide backup power during outages.

Do I need solar to have batteries?

No, you don’t need solar panels to install a battery energy storage system at your home or business, as batteries can be charged using electricity from the grid to provide backup power, enhance energy management, and participate in time-of-use arbitrage independently of solar power; however, pairing batteries with solar panels can maximize savings and efficiency by storing excess solar energy for later use, especially during peak pricing times or when the sun isn’t shining.

Can I connect my batteries to solar?

Yes, it is possible to connect batteries to your existing solar system, but our company does not offer this service to avoid voiding warranties on your current installation; connecting batteries can optimize energy usage by charging from the grid during off-peak hours when rates are lowest and solar production is minimal, helping you maximize savings and manage consumption, while additional solar panels—whether on-grid or off-grid—can also be added later to charge the batteries directly without affecting NEM status.

What is the difference between full home and partial home backup?

A full home backup system powers all the electrical circuits in your home, ensuring that everything from lights and appliances to HVAC systems continues to operate as usual, provided the battery capacity is sufficient. In contrast, a partial home backup system is designed to supply power only to essential circuits or appliances, such as refrigerators, key lights, and necessary medical devices. The choice between the two depends on your specific power needs during an outage and your budget constraints. Homes must have a peak demand of 12 kWh or more to qualify for a 100% subsidized full home backup, while homes with lower demand may only qualify for a partial home backup.

What happens when the power goes out?

When the power goes out, a battery energy storage system can automatically take over to provide power to your home or business. If the battery is charged, it will begin supplying electricity to designated circuits or the entire property, depending on how the system is configured. This seamless transition keeps your essential appliances running without interruption during a power outage. The duration for which the battery can supply power depends on its capacity and the amount of energy being used. For households with solar panels connected directly to the battery, the battery can continue to be charged during the day, extending the backup power duration as long as the outage continues and sunlight is available.

What is the difference between LiFePO4 and Lithium Ion Batteries?

Lithium iron phosphate (LiFePO4) batteries are often considered superior to standard lithium-ion batteries for several reasons. LiFePO4 batteries offer enhanced safety due to their stable chemical composition, which significantly reduces the risk of fire or explosion. They also boast a longer lifespan, enduring more charge and discharge cycles with minimal capacity loss. While lithium ion batteries may provide higher energy density, making them suitable for compact devices needing high power, LiFePO4 batteries are preferable where safety and durability are prioritized, such as in residential energy storage or electric vehicles. Additionally, LiFePO4 batteries perform better across a wider range of temperatures, further solidifying their advantage.

What is included with the installation of my batteries?

Every battery storage installation is comprised of several key components: batteries, an inverter, a sub-panel, and conduit. We typically install the batteries either in the garage or externally, depending on the layout and specific conditions of your property. For optimal installation, we prefer to place the sub-panel adjacent to the main panel, with the batteries and inverter mounted on the same wall. However, each installation is unique, and we must adhere to the specific regulations and guidelines set by the local AHJ, which can vary.

How do I control the batteries?

You can control your battery system using a dedicated app, which allows you to monitor and manage the system remotely from your smartphone or tablet. This app provides real-time insights into your battery’s performance and enables you to adjust settings according to your energy needs. Additionally, we program the battery initially to ensure it operates at optimal efficiency for savings. This programming takes into account peak energy rates and your typical usage patterns to maximize cost-effectiveness while providing the flexibility to adjust settings as your needs change.

Do I own my batteries?

To fully finance your battery project, the 30% federal tax credit on its fair market value can be utilized. For the tax credit to be claimed, the project must be owned by the same entity for five years, meaning that for the initial six years, the battery system will be under third-party ownership. During this period, the homeowner will not be responsible for any payments, liens, or obligations, and will retain control over the battery. Ownership will transfer to the homeowner in the sixth year. Additionally, the battery will be covered by an extended guarantee for the first six years, during which the third-party owner will maintain it and address any issues that may arise.

Miscellaneous

What happens if I move?

The system will stay with the current home, and the agreement will be transferred to the new homeowner at no cost. Ownership of the battery system will pass to whoever is the homeowner after year 6. There are no tax implications associated with this transfer.

What is required of me?

Once you have assigned the rebates to the developer, all you need to do is wait. After installation and PTO of your storage system, you will also need to change your utility rate to an SGIP approved rate so that the rebates will be honored. That will be coordinated by your project manager and may simply require your verbal approval over the phone. You may also need to clear out space in your garage for the installation, determined by location of the installation. All of this will be coordinated with you at the time of install scheduling.

Will this affect my credit?

No. This is not a loan or a purchase. No credit check will be performed.

Will adding batteries affect my current NEM Agreement?

No, adding a non-export grid charged battery to an existing system does not change NEM status. The NEM Plus (NMP) program allows existing NEM customer to add non-export technology without thong their NEM participation.

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