Residential Battery Storage Program Rules

Residential Battery Storage Program Overview (Effective August 2026)

1. Program Overview

This Residential Battery Storage Incentive Program (Program) offers an incentive payment to qualifying residential CleanPowerSF customers who install new battery energy storage (BES) systems paired with either new or existing qualifying solar photovoltaic (PV) systems.

The Program is operated by the San Francisco Public Utilities Commission (SFPUC) for our CleanPowerSF customers. The SFPUC encourages climate action through the development of renewable energy resources throughout San Francisco. The intent of the Program is to support the expansion of PV systems paired with BES systems. To learn more about the program, visit the Residential Battery Storage page today.

2. Customer Eligibility

To be eligible, customers must meet the following requirements:

  • Be a CleanPowerSF residential rate customer.

  • Be on PG&E’s Solar Billing Plan (SBP) tariff with an existing behind-the-meter PV system or show enrollment in the SBP tariff for a new behind-the-meter PV system.

  • The PV system can only be serving the metered load of the specific electric account applying for this Program.

  • Be installing a new BES system with no existing BES systems.

  • BES system installation is voluntary and not required to be installed by a regulation, local ordinance, building code, or other legal obligations.

  • Apply for and receive an incentive reservation from this Program before the BES system receives Permission to Operate (PTO) from PG&E.

  • Tenants must apply with approval from the property owner and must submit a completed Property Owner Notice and Release Form.

  • Utility Customers enrolled in either the California Alternative Rates for Energy (CARE) program or the Family Electric Rate Assistance (FERA) program are eligible for the CARE/FERA incentive level, detailed in the Program Incentives section. Utility Customers must still be enrolled in either of these programs at the time of incentive payment to receive the CARE/FERA incentive level.

  • Utility Customers who successfully participate in the Disadvantaged Communities – Single-Family Solar Homes (DAC-SASH) program are eligible for the DAC-SASH incentive level detailed in the Program Incentives section.

    • To be eligible for the DAC-SASH incentive level, the Utility Customer must be the same as the Applicant for the DAC-SASH program and must be enrolled in either the CARE or FERA program. Utility Customers must still be enrolled in either CARE or FERA at the time of incentive payment to receive the DAC-SASH incentive level.

3. Effective dates:

To be eligible, BES Systems must meet the following requirements:

  • Permanently installed and paired with an onsite PV system

  • Minimum nameplate capacity of 3 kWh

    • Incentive will be capped at 15 kWh (larger batteries can still participate)

  • Receive Permission to Operate (PTO) from PG&E as a Rule 21 Exporting Generating Facility

  • Equipment must be new, not refurbished

  • Remain in place for the duration of its useful life

  • Set-up to operate in a daily cycling mode (e.g., self-consumption or time-of-use) for the duration of its useful life

  • To receive the full incentive level detailed in the Program Incentives section below, the BES system must be set at no more than 20% backup reserve state of charge. For BES systems set at a higher backup reserve state of charge, the incentive level will be adjusted per the Program Incentives section below.

  • For third-party owned systems (such as leased or Power Purchase Agreement (PPA) systems), the customer must have the ability or authority to change the BES system settings to meet the above Program requirements of a daily cycling mode and backup reserve state of charge.

  • Able to participate in a Virtual Power Plant (VPP) program

  • BES systems used for back up only are not eligible

4. Program Incentives

4.1 Full incentive levels for BES systems set at no more than 20% backup reserve state of charge:

Incentive level per kWh of BES system nameplate capacity:

  • Market Rate Customers: $250 per kWh

  • CARE/FERA Customers: $600 per kWh

  • DAC-SASH Customers: $1,100 per kWh

Any customer type who contracts their BES system installation through a Local Installer may be eligible for a 5% incentive level adder. A Local Installer is defined as an installer holding a current San Francisco business registration certificate showing a San Francisco address as the principal place of business. More information on how to establish that San Francisco is the principal place of business may be found on the Residential Battery Storage website.

Incentive level per kWh of BES system nameplate capacity with 5% Local Installer adder:

  • Market Rate Customers: $262.50 per kWh

  • CARE/FERA Customers: $630 per kWh

  • DAC-SASH Customers: $1,155 per kWh

4.2 Adjusted incentive levels for BES systems set at more than 20% backup reserve state of charge:

Incentive level per kWh of BES system nameplate capacity will be adjusted with the following calculation based on the BES system’s set backup reserve state of charge:

[Incentive level per kWh of BES system nameplate capacity] x (100% - [BES system backup reserve state of charge]) = Adjusted incentive level per kWh of BES system nameplate capacity.

Examples:

  • Market Rate Customer installing BES system not contracted through a Local Installer with backup reserve state of charge set at 50%

    • $250 per kWh x (100% - 50%) = $125 per kWh

  • CARE/FERA Customer installing BES system contracted through a Local Installer with backup reserve state of charge set at 30%

    • $630 per kWh x (100% - 30%) = $441 per kWh

4.3 Incentive Caps and Details

Funding is available on a first-come-first served basis for eligible customers and is subject to the availability of funds.

The incentive reservation expires 6 months after the Incentive Reservation Notice date. Extensions may be granted at the discretion of the SFPUC.

The Program is limited to one incentive payment per electric account. BES systems that exceed 15kWh in nameplate capacity may participate in the Program but will not receive incentives for capacity beyond 15kWh.

The total incentive amount paid by the Program will not exceed the project’s Incentive Reservation Amount as shown on the Incentive Reservation Notice. The customer must inform the Program of any changes to the project, CARE/FERA status, or DAC-SASH status before installation. Depending on funding availability and at the Program’s discretion, an updated Incentive Reservation Notice may be issued to the customer with the updated Incentive Reservation Amount. This updated Incentive Reservation Notice does not change the incentive reservation expiration date. The incentive reservation still expires 6 months after the original Incentive Reservation Notice date.

Additionally, the total incentive amount paid by the Program will not exceed 100% of the total BES system project cost. Projects may combine the incentive from this Program with other available BES system funding programs, except if SFPUC is also the funding source of the other program incentive. The customer must disclose all other incentives, rebates, or grants that will be applied to the BES system. If necessary, SFPUC will reduce its Residential Battery Storage Incentive Program incentive payment so that the total of all incentives, rebates, and grants does not exceed 100% of the total BES system project cost.

4.4 CARE/FERA and DAC-SASH Customer Reservations

The Program will reserve 10% of the available Program incentives in any Program Year for CARE/FERA customers and another 10% of the available Program incentives in any Program Year for DAC-SASH customers. Unreserved funds will be reviewed at the end of each Program Year and may be re-allocated to serve Market Rate customers in the new Program Year.

5. Program Process

To apply for the Program, please ensure you meet the eligibility criteria above and then follow the steps below.

  1. Pre-Enrollment: All customers are encouraged to visit the Residential Battery Storage Incentive Program webpage to review helpful background materials about BES systems and PV systems.

  2. Request Project Quotes: While it is best practice to receive quotes from at least 3 installers for your project, you will only need to upload 1 quote with the Incentive Agreement.

  3. Submit Incentive Agreement: To reserve incentives, complete the Incentive Agreement and provide the proposed project scope (BES system model, capacity, etc.). An Incentive Agreement must be submitted and receive an Incentive Reservation Notice from the Program before the BES system receives PTO from PG&E.

    • Optional: Utility Customer can redirect the incentive payment

      • The Utility Customer is entitled to the Program incentive payment. Utility Customer can agree to redirect the incentive payment to a different Incentive Payee (such as the installer or BES system owner for leased/PPA systems).

  4. Receive Incentive Reservation: Upon approval of the Incentive Agreement and Incentive Reservation Amount, SFPUC issues an Incentive Reservation Notice. The incentive reservation expires 6 months after the Incentive Reservation Notice date.

  5. Complete Project & Submit Incentive Claim Form: After completing project installation and receiving PTO from PG&E, complete the Incentive Claim Form and submit the required verification documentation.

  6. Receive Incentive Payment: If the project is installed as per the Incentive Agreement and all Program requirements are met, the SFPUC issues the Program incentive. Payments are made by check and mailed to the address indicated on the submitted IRS W-9 form for the Incentive Payee.

6. Project Verification Documentation

Upon completing project installation and receiving PTO from PG&E, the customer will submit an Incentive Claim Form. The customer has 45 days from the PTO date to submit the Incentive Claim Form and verification documentation. Customers may request an extension of up to 30 days, which may be granted at the discretion of the SFPUC.

The verification documentation below will be requested as part of the Incentive Claim Form process:

  • PG&E electric account number

  • Itemized invoice(s) and proof of payment. Only costs directly associated with the BES system are eligible project costs for this Program. If a PV system is installed at the time that the BES system is installed, the BES system costs must be itemized separately. The following will be considered eligible project costs for the BES system:

    • BES system hardware

    • Installation

    • Interconnection

    • Permit fees

    • Engineering and design

  • Service, warranty, and O&M agreements, if applicable

  • Permission to Operate letter or email from PG&E. The letter or email must include the following information:

    • Customer name and project address

    • System size

    • Date of approval

    • Utility name (PG&E) and letterhead

  • Interconnection Agreement from PG&E

  • Contract for third-party owned systems (lease or PPA)

  • Photos

    • BES system nameplate showing model number and serial number

    • User interface to show BES system is set to a daily discharge operating mode

    • User interface showing the % of backup reserve state of charge

  • IRS W-9 form for the Incentive Payee

The SFPUC reserves the right to request additional documentation as needed for demonstration of compliance with Program requirements and to audit customer documents and attestations at its sole discretion.

The SFPUC specifically reserves the right to audit the BES system’s actual usage data and settings for the duration of its useful life to ensure ongoing compliance with the daily discharge and backup reserve state of charge requirements. If an audit reveals that the BES system settings have been modified in a manner that would have reduced the original incentive amount (e.g., increasing the backup reserve state of charge above 20%), the SFPUC reserves the right to reclaim the difference or the entirety of the incentive payment.

Examples of additional verification documentation that may be required include:

  • Copy of CleanPowerSF electric bill

  • Copy of permits from local permitting agency

  • Additional evidence of actual payment for out-of-pocket costs for submitted invoices

  • Other specified documentation at SFPUC’s discretion

7. Terms and Conditions

By participating in the Program through submission of the Incentive Agreement and Incentive Claim Form, the customer acknowledges and agrees without exception to all Program rules and requirements and to the following Program Terms and Conditions:

  1. Participation in the Program is voluntary, and the forms submitted and signed as part of this Program concerns incentive funding only for the BES system project, and in no way constitutes a permit or approval of the project.

  2. Installing a BES system may help lower electric bill costs, but not guaranteed.

  3. Funding for this Program is limited and subject to the budgeting and fiscal provisions of the City’s Charter. The City and County of San Francisco (City) reserves the right to modify or discontinue this Program without prior notice and at its sole discretion.

  4. Funding is available on a first come, first served basis for qualified customers. Incentives will be reserved after the City approves the Incentive Agreement and issues an Incentive Reservation Notice. Payment of Program incentives will be made after all Program requirements are met and upon approval of the Incentive Claim Form. The City reserves the right to modify or cancel the incentive payment if the actual installation and commissioning of the project differs in any material respect from the project defined in the Incentive Agreement or if the project fails to comply with any other Program requirement.

  5. The City’s obligations under these Terms and Conditions shall be strictly limited to the Program incentive payment outlined in the Incentive Reservation Notice. In no event shall the City be responsible for any payment of any other claims, regardless of whether any claim is based on contract or tort, for any special, consequential, indirect, or incidental damages.

  6. By participating in this Program, customer will, at their own expense, obtain and maintain all licenses, permits, insurance, and utility authorizations needed to install and operate the BES system.

  7. City’s review of the project and authorization for incentive payment, including enrollment of customers and related parties, is solely for review of program compliance of rules and requirements and shall not be construed as confirming or endorsing qualification of the project, its design, or any person involved with the project including but not limited to the installer, designer, or manufacturer, or as warranting the economic value, safety, durability, reliability, or compliance of the project.

  8. Customer is solely responsible for the project, including selection of any designer, manufacturer, contractor or installer. Customer and any third parties involved with the project are independent contractors and not authorized to make any representations on behalf of the City.

  9. The SFPUC may issue a Notice of Program Violation to any customer found to be in breach of Program rules or who provides false or misleading information. Customers who receive a Notice of Program Violation may be deemed ineligible for participation in any future CleanPowerSF or other SFPUC Customer incentive programs.

  10. The Program forms, these Terms and Conditions, and Program documents shall be governed by and construed in accordance with the laws of the State of California, without regard to its conflict of law provisions. Any disputes shall be subject to the exclusive jurisdiction of the courts located in the City and County of San Francisco, California.

  11. Customer agrees to defend, indemnify, and hold harmless the City and County of San Francisco (City) and all of its officers, agents, employees, or authorized agents/representatives from any claims, injury, damages, suites, actions, losses, or liability with every kind, nature, and description arising out of, or in any way connected with the customer’s participation in the Program.

  12. THE SFPUC IS NOT RESPONSIBLE FOR ANY MANUFACTURER AND/OR INSTALLER OR THIRD-PARTY SYSTEM OWNER WARRANTIES, EITHER EXPRESS OR IMPLIED, OR PERFORMANCE AND WORKMANSHIP. ANY AND ALL AGREEMENTS, CONTRACTS, AND OBLIGATIONS RELATED TO ALL WORK AND SERVICES RELATED TO THIS PROGRAM ARE STRICTLY BETWEEN THE CUSTOMER AND THE INSTALLER AND/OR THE THIRD-PARTY SYSTEM OWNER. AS THE CUSTOMER, I UNDERSTAND THAT THE SFPUC IS NOT A PARTY TO SUCH AGREEMENTS OR SUB-AGREEMENTS, AND IS NOT RESPONSIBLE FOR ANY PERFORMANCE, WORK, EQUIPMENT, OR OBLIGATIONS. SFPUC MAKES NO REPRESENTATIONS OR WARRANTIES REGARDING THE PROGRAM OR ANY BES SYSTEM INSTALLATION COMMISSIONING OR OPERATION, ANY OTHER WORK, OR THE POTENTIAL BENEFITS TO BE DERIVED THEREFROM, WHETHER STATUTORY, EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, THE IMPLIED WARRANTIES OR MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE, USE OR APPLICATION AND SPECIFICALLY DISCLAIMS ANY SUCH WARRANTY, EXPRESS OR IMPLIED.

  13. Data Privacy:

    • To implement this Program, the SFPUC may need to share Customer Data (defined below) with the Project’s Property Owner, contractors, vendors, installers, and other third parties. For more information about how CleanPowerSF protects your information, see our Privacy Policy.

    • “Customer Data” includes individual customers’ full names, addresses, email addresses, telephone numbers, PG&E electric account numbers, payment information, CARE/FERA enrollment status, DAC-SASH enrollment status, CleanPowerSF active/enrollment status, utility usage including electric energy usage data, and other information provided in Program forms, documents, and correspondence.

    • Employees of the SFPUC, which also includes CleanPowerSF employees, and other City and County of San Francisco employees, agents, and representatives are authorized to access Customer Data and information submitted to manage and process applications, participation, incentive payment, and to implement this Program.

    • Data collected from this Program’s forms and subsequent Program participation may be used by the Program for Program evaluation, reporting, case studies, promotional materials, and Program improvement.

    • The SFPUC will only share Customer Data with an installer, other third party, and/or other individuals authorized by the customer and with customer’s express permission. Customer can authorize individuals in the Incentive Agreement or by submitting the Protected Customer Data Sharing Authorization Form. If individuals are designated by the customer, the SFPUC, other City and County of San Francisco employees, agents, and representatives are authorized to share Customer Data with those individuals.

8. Definitions

  • Battery Energy Storage (BES) System: Stores excess solar energy generated for later use.

  • Behind-the-meter: Energy systems operated on the customer’s side of the utility meter. These systems directly power the home on-site.

  • Incentive Payee: The individual or entity the incentive payment will be paid to.

  • Market Rate Customer: Customers not enrolled in CARE or FERA or participating in DAC-SASH.

  • Permission to Operate: Final approval from PG&E that allows you to turn on the system and connect it to the grid.

  • Program Year: The Program’s operational and funding cycle associated with SFPUC’s fiscal year of July 1 to June 30.

  • Solar Photovoltaics (PV) System: Generates energy from sunlight.

  • Third-Party Owned System: An arrangement where an outside company owns the PV and/or BES system located on a user’s property.

  • Utility Customer: PG&E account holder.

  • Virtual Power Plant Program: A program that aggregates energy devices such as BES, PV, EV chargers, and smart thermostats, to work together to supply electricity when it’s needed most to help ease demand on the electric grid.