California's Low-Income Solar Program Provides Financing for Energy Storage Solutions
California's Solar on Multifamily Affordable Housing (SOMAH) Program is helping to bring clean, renewable energy to low-income multifamily housing properties across the state. Here's what you need to know about the program and its incentives.
Solar Panel Incentives
The SOMAH Program offers financial incentives for the installation of solar panels in eligible properties. The incentives are calculated based on dollars per watt, with the amount varying depending on factors such as the allocation of electrical use between tenants and common areas, and whether the project receives federal investment tax credits or low-income housing tax credits. There is no set amount for individual incentives, and owners or contractors can apply for multiple properties as long as they meet program requirements.
Energy Storage Incentives
For properties that install energy storage systems in conjunction with new solar panels, SOMAH offers a flat rate incentive. The incentive is calculated by multiplying the energy capacity of the system by a rate of $1.10 per watt-hour (Wh). This funding supports California's goal of enhancing energy resilience and equity by providing backup power during outages, reducing energy bills, and managing peak-time usage costs.
Eligibility and Application
To be eligible for SOMAH incentives, properties must be deed-restricted low-income residential rental housing with at least five units, and meet specific income qualifiers or be located in designated disadvantaged communities. Applications are accepted from property owners and their representatives, such as electrical and solar installation contractors. The applications are thoroughly reviewed by the SOMAH Program administration staff.
Solar contractors are required to hire 1-2 trainees based on the system size, and pay them according to SOMAH requirements. Property owners or third parties that own SOMAH-incentivized solar systems may need to pay for equipment or tools related to the installation or for system costs that go beyond the incentive amount.
Application Process
Property owners or their contractors must apply online at calsomah.org to participate in the SOMAH Program. The SOMAH Administration team offers Tenant Education services to help ensure that tenants understand the program and its effects.
Incentive recipients can receive 60% of their reserved incentive amount once the solar PV system is installed and the project has received a Proof of Project Milestone Approval notification.
Program Details
The SOMAH Program is mandated to provide incentives for at least 300 MW of solar generating capacity. The installation contractor purchases both the panels and batteries. Interested parties can sign up for SOMAH news and updates at calsomah.org/email-sign. Property owners or their contractors can contact the SOMAH team at [email protected] or call 858-244-1177, ext. 5 for more information about the program.
Tenants never pay for any part of a SOMAH installation, and property owners are prohibited from raising rents or charging fees related to their energy use. The average system size for SOMAH projects is 117.4 MW AC, but each installation size varies based on the property's electrical usage.
In Q2 2025, the program opened incentives for integrated energy storage systems. The SOMAH Program is helping to bring clean, renewable energy to low-income communities and support California's goal of reducing greenhouse gas emissions.
- The SOMAH Program offers financial incentives for the installation of solar panels in eligible properties, with incentives calculated per watt based on factors like tenants' electrical use and tax credits.
- For properties installing both solar panels and energy storage systems, SOMAH offers a flat rate incentive, calculated by multiplying the energy capacity of the system by $1.10 per watt-hour.
- To be eligible for SOMAH incentives, properties must be deed-restricted low-income residential rental housing with at least five units, or be located in designated disadvantaged communities.
- Solar contractors working on SOMAH projects must hire trainees according to system size, and interested parties can sign up for program news and updates on the SOMAH website.
