The self-generation incentive program has been revamped during its life to increase its cost-effectiveness and expand its goals—including reducing greenhouse gases. The program seeks to promote independent, distributed energy systems from 30 kW to 3 MW that fuel businesses and other onsite needs. Until 2007, fossil-fueled and biogas turbines, microturbines, and internal combustion systems were included. That is because the program initially focused on reducing peak demand. The program later was overhauled to promote transformation to a cleaner, distributed generation market, and cutting greenhouse gases. Photovoltaic systems were removed from the program in 2007. That technology was put into the solar subsidy program, known as the California Solar Initiative. Storage technologies were allowed to take advantage of the subsidies in 2008. Fossil fueled distributed systems were eliminated from the program but selectively added back in 2011. In addition, incentive payments became performance-based, and the subsidy level was reduced.
