California Low-Income Solar Program Funds Energy Storage

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California’s Solar on Multifamily Affordable Housing (SOMAH) Program is now providing incentives to help tenants and property owners obtain energy storage systems. It  also provides incentives for solar panel systems that benefit both low-income tenants and property owners throughout the Golden State. The California Energy Commission directs the SOMAH program.

Energy storage systems are important because they store excess electricity from clean, renewable electricity. The excess electricity from solar stored in batteries can be used at night and on cloudy days or during outages. Rooftop solar power and energy storage technology is not affordable to all people, so government programs like this one can help them access it.

SOMAH Program administrators answered some questions for CleanTechnica.

The SOMAH Program is statutorily mandated to provide incentives for the installation and interconnection of at least 300 MW CEC-AC of solar generating capacity. Who are the incentives for and how can they receive them?

The SOMAH Program provides financial incentives for installing solar panel systems that benefit both affordable housing property owners and low-income tenants in disadvantaged communities throughout California. It is designed to deliver renewable energy and credits on energy bills to residents who otherwise would not have the necessary financial resources.

SOMAH accepts incentive applications from both property owners and their representatives, primarily electrical and solar installation contractors. The property must meet certain requirements, such as being deed-restricted low-income residential rental housing, having at least five units and satisfying income qualifiers based on tenant income, location in a designated disadvantaged community or other factors. 

Applications are thoroughly reviewed by the SOMAH Program administration staff and awards are calculated based on several factors including tenant/common area energy allocation, as long as the project meets all program requirements.

More on property eligibility requirements: https://calsomah.org/program-overview-requirements

How much can one recipient receive and when can the incentives be received?

There are no set amounts for SOMAH project incentives or limits on how many separate housing properties an owner or contractor can apply for. The amount for an individual incentive is calculated in dollars per watt and varies based on factors such as the allocation of electrical use between tenants and common areas and if the project is receiving a federal investment tax credit or a low-income housing tax credit. In Q2 2025, the program opened incentives for integrated energy storage systems. Unlike the variable solar PV incentive, storage is funded as a flat rate calculated by multiplying the energy capacity of the system by the incentive rate of $1.10/Wh. 

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. The remainder of the incentive is disbursed when the system is connected to the electrical grid and receives permission to operate from the utility.
Here are some incentive examples: https://calsomah.org/incentives-finance

Will the recipient get their own solar panels, or solar panels and battery storage?

The installation contractor purchases both the panels and batteries. However, the SOMAH Program can incentivize both customer-owned and third-party owned systems. The system owner is the owner of the solar PV or integrated solar + storage system at the time the incentive is paid. 

Where will the solar and batteries be located?

They must be located at the property listed on the incentive application. Typically, panels are mounted on the property’s rooftops or on carports, but they can be ground-mounted in some circumstances. Batteries are usually installed in the property’s electrical service room or some other space near the utility panel where they are protected from the elements.

Who will install the technology?

SOMAH prequalifies eligible contractors for all projects. They must have an active A, B, C-10, or C-46 license from the California Contractors State License Board and complete a one-hour online contractor eligibility training.

Will the recipients be taught how to use it?

Tenants and property owners have no responsibility for the operation and maintenance of the solar panels or the storage batteries, other than to report issues to the contractor when something goes wrong or breaks down. Both systems include O&M contracts and have warranties. 

The SOMAH Administration team offers Tenant Education services to help ensure that tenants understand the program and how it will affect them, from installation to receiving credits on their utility bills. For additional information on these support services and how to access education, please visit https://calsomah.org/tenant-benefits. 

What is the size of each solar power system and each energy storage system?

Each solar and energy storage installation is different based on the number of tenant units and the property’s electrical usage. The average system size for SOMAH projects is 117.4 MW AC. 

Do the recipients need to pay for any part of their solar power and/or energy storage systems?

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. However, property owners and third parties that own SOMAH-incentivized solar systems through power purchase agreements or solar service agreements may need to pay for equipment or tools related to the installation or for system costs that go beyond the incentive amount.

Solar contractors are also required to hire 1-2 trainees, based on the system size, and pay them according to the SOMAH requirements (which are 1.4x the local minimum wage, or prevailing wage if the project falls within the specifications set by AB 2143). To learn more, visit  https://calsomah.org/resources/job-training-requirements.

Property owners or their contractors must apply online at calsomah.org. There, they’ll find information and step-by-step instructions to get started. If they need more information or just want to talk to us about the program, they can email contact@CalSOMAH.org or call 858-244-1177, ext. 5. We encourage all interested parties to sign up for SOMAH news and updates at calsomah.org/email-sign.