FAQ

Frequently asked question

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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.

-rabates, credtis , 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 do not need solar panels to install a battery energy storage system at your home or business. Batteries can
be charged using electricity from the grid and can 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 your energy 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. However, our company does not offer this
service in order to avoid voiding warranties associated with your current solar installation. Connecting batteries
allows for the optimization of energy usage by charging them with the grid during late night or early morning hours
when electricity rates are typically lowest and solar production is minimal. This approach ensures you maximize your
savings and effectively manage your energy consumption. Additional solar panels can be added after the fact to
charge the batteries directly as well as off grid panels. This will not affect NEM status.

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

 full home backup system powers all the electrical circuits in your home, ensuring that everything from your lights and
appliances to HVAC systems continues to operate as usual, as long as 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 will depend on your specific
needs for power during an outage and your budget constraints. Homes must have a peak demand of 12kwh or more
to qualify for 100% subsidized full home backup. Homes with less than that may only qualify for 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.