The Solar on Multifamily Affordable Housing (SOMAH) Program

Solar on Multifamily Affordable Housing (SOMAH)

Solar on Multifamily Affordable Housing (SOMAH) program provides incentives for solar energy photovoltaic systems for multifamily affordable housing. Those interested in learning more about the SOMAH Program should visit the program's website: www.calsomah.org.

Key Components of the SOMAH Program:

A budget up to $100 Million annually, collected through June 2026, from the electric IOUs' Greenhouse Gas Auction Proceeds for this solar program
Incentive levels for customers go up to $3.50 per AC Watt for load serving tenants and $1.19 per AC Watt for load serving common areas (as of March 16, 2023) and are dependent on tax credit usage for the project
Encourages solar system installations in California's disadvantaged communities across the state
Emphasizing the explicit goal that incented solar systems lower tenant energy bills
Develop by December 31, 2032, at least 300 megawatts of installed solar generating capacity

Implementation of SOMAH

Assembly Bill (AB) 693 (Eggman, Chapter 582, 2015) provides financial incentives for the installation of solar energy photovoltaic systems on multifamily affordable housing properties throughout California. The statute, among other things, prescribes criteria for participation in the incentive program; sets targets for installation of solar PV systems; identifies various required elements for the Program; and gives direction to the California Public Utilities Commission (CPUC) on the program administration.

In response to the legislation, the CPUC, in proceeding R.14-07-002, issued a Ruling to stakeholders seeking input on the design, implementation, eligibility and other programmatic issues for the new program. Nearly 25 parties provided over a thousand pages of comments in response to the ruling.

In December 2017, the CPUC issued a decision, D.17-12-022, which outlines the program design for the SOMAH Program to incentivize solar systems. The Decision builds on many of the program successes and lessons learned from the California Solar Initiative Multifamily Affordable Solar Housing Program, which ends in 2021. Pursuant to this Decision, the utilities also created the SOMAH virtual net energy metering (VNEM) tariff. Virtual net energy metering allows the credit from an eligible renewable generator to be shared between multiple benefitting accounts. A property owner assigns benefits (from the renewable generator or generators) to a property's common area and tenant accounts. Solar credits show on customer bills as energy offsets (kWh) and receive export credit compensation ($/kWh) from the utility when there are net exports in a given time period. Learn more about net energy metering here.

In March 2018, the CPUC's Energy Division selected via a competitive bidding process, a single, statewide program administrator team. The SOMAH Program Administrative team is comprised entirely of non-profit organizations: the Center for Sustainable Energy (CSE), GRID Alternatives (GRID), the Association for Energy Affordability (AEA), and the California Housing Partnership Corporation (CHPC). On July 1, 2019, SOMAH began accepting applications.

Incentive levels for program applicants range up to $3.50 per AC Watt for renewable capacity serving tenants and $1.19 per AC Watt for renewable capacity serving common areas. The incentive levels are dependent on tax credit usage for the project and expected performance of the eligible renewable generator(s). The program also has a mandate that incented renewable energy generation systems lower tenant energy bills through the SOMAH virtual net energy metering tariff. The SOMAH program encourages solar system installations in California's disadvantaged communities (DAC) as defined by CalEPA pursuant to Health and Safety Code Section 39711. For the SOMAH program, this is defined as DACs that score in the top 25 percent of census tracts statewide in the CalEnviroScreen tool from either the current or previous version. It also includes the 22 census tracts that are in the highest 5% of the CalEnviroScreen’s Pollution Burden.

In 2023, the Legislature passed Senate Bill 355 (Eggman, 2023) to adjust and expand the SOMAH eligibility criteria and extended the program through 2032. The new legislation also permits that if residential properties are new construction, then incentives can be used for the portion of a system that goes beyond building energy code requirements. It also permitted the Commission to consider authorizing advance payment loans as part of SOMAH, so long as the program can secure evidence that the project could not occur without an advance payment. The legislation went into effect on January 1, 2024.

Applying for SOMAH Program Incentives

For information on how to apply for incentives in your area, please go the SOMAH Program website and select your utility provider under “Ready To Apply”: https://calsomah.org/apply. Solar on Multifamily Affordable Housing (SOMAH) - You Tube video

To be eligible, at a minimum, your property must:

Be deed-restricted, low-income residential rental housing (including mobile home parks),
Have at least five rental units,
All units must be individually metered,
Be an existing property, except new construction may be eligible if exceeding energy code requirements,
Be a utility or community choice aggregator (CCA) customer in the following utility territories: Pacific Gas & Electric, Southern California Edison, San Diego Gas & Electric, Liberty Utilities or PacifiCorp, and
Satisfy one of the following:
- 1) 66% of the property residents have incomes at or below 80% of the area median income or
- 2) property is in a defined disadvantaged community (DAC) or
- 3) property is owned by a California Native Tribe or
- 4) property is owned by a Public Housing Authority or Public Housing Agency

Upcoming Events for SOMAH Proceedings and Reports

On May 5, 2023, the Commission issued a ruling as part of Rulemaking (R.) 14-07-002 asking for input on the SOMAH program. Opening comments are due on June 2, 2023, and reply comments due on June 16, 2023.
SOMAH program event information can be found here: https://calsomah.org/events

SOMAH Information & Reports Click on the link to go to the relevant page or section below.
SOMAH Regulatory Proceeding Information	SOMAH Program Information
SOMAH Decisions, Rulings, and Advice Letters	SOMAH Program Website
Net Energy Metering (NEM) Information	SOMAH Program Handbook
	SOMAH Program Semi-Annual Reports
	SOMAH Joint-IOU Semi-Annual Reports
	SOMAH Evaluation Reports

SOMAH Decisions, Rulings, and Advice Letters

The CPUC Rulemaking R.14-07-002 currently handles all issues related to the SOMAH Program. Decisions and regulatory matters include:

Decision D.17-12-022 (December 2017) establishes the SOMAH program
Resolution E-4987 (April 2019) approves with modifications the SOMAH Program Handbook Program Implementation Plan in Compliance with Decision (D.)17-12-022. Adopted Program Implementation Plan (CSE 92-E-A/GRID 12-E-A) and Program Handbook (GRID 11-E-B). The Program Handbook has been updated since this initial filing.
Advice Letter 3285-E Disposition (April 2019). Disposes of San Diego Gas and Electric's advice letter that provides information regarding establishment of a Solar on Multifamily Affordable Housing Balancing Account (SOMAHBA) pursuant to D.17-12-022.
Decision D.19-03-015 (April 2019) modifies D.17-12-022 providing flexibility in IOU administrative expenditures. It also outlines options regarding auditing or review of the SOMAH program and establishes co-funding and incentive agreement deadlines.
Decision D.20-04-012 (April 2020). The decision determines revenues are available and that there is adequate participation and interest in SOMAH program, continuing authorization of allocation of funds to the SOMAH program through June 30, 2026.
Resolution E-5054 (June 2020) The Resolution approves revisions to the SOMAH Program Handbook to limit participation of a photovoltaic (PV) project to either the SOMAH Program or the MASH Program.
Disposition of CSE Advice Letter 133-E/133-E-A (April 2022) which approves SOMAH Program Handbook 5th Addition.
Decision (D.) 22-09-009 amended D.17-12-022 SOMAH forecast budgeting process the IOUs can propose to set aside their proportionate share of $100 million for SOMAH, if they adequately show that the IOUs' collective revenue will exceed $1 billion.
CSE AL 138-E-A was approved on March 6, 2023 (Energy Division Disposition Letter). CSE Advice Letter 138-E to update the SOMAH Handbook was submitted on September 29, 2022, with substitute sheets provided on November 9, 2022, and December 14, 2022. A supplement 138-E-A was submitted on February 10, 2023.
Decision (D.) 23-03-007 amended D.17-12-022 incentive levels to raise the highest incentive level possible to $3.50/watt for tenant areas and $1.19/watt for common areas and ends the annual incentive step-down.
CSE AL 141-E (with substitute sheets from 5/15 and 5/31) was approved on June 12, 2023 (Energy Division Disposition Letter). It amends the Program Implementation Plan and Handbook in compliance with D.23-03-007.
Decision (D.) 23-11-068 continued the SOMAH virtual net energy metering (VNEM) tariff for program participants along with some essential modifications.
CSE AL 147-E and substitute sheets was approved in February 2024 requesting to revise the Program Implementation Plan and Program Handbook to implement Senate Bill 355 (Eggman, 2023).
CSE AL 153-E was approved on 6/22/24 to permit applicants upon re-entry to apply previously forfeited deposits to new or restarted applications.

If you wish to receive notice of proceeding information the public can join the proceeding as “information only,” follow the instructions here.

IOU Semi-Annual Administrative Expense SOMAH Reports

Pursuant to D.19-03-015, the electric IOUs must jointly file and serve semi-annual reports detailing their administrative expenses incurred in support of the SOMAH Program for the preceding six full months and show cumulative totals. The revised Excel template (as of December 2021) for the IOUs is here.

July 21, 2024 Joint IOU Report (PDF, Excel)
January 21, 2024 Joint IOU Report (PDF, Excel)
July 21, 2023 Joint IOU Report (PDF, Excel)
January 21, 2023 Joint IOU Report (PDF, Excel)
July 21, 2022 Joint IOU Report (PDF, Excel)
January 21, 2022 AMENDED Joint IOU Report (PDF, Excel)
July 21, 2021 Joint IOU Report (PDF, Excel)
January 21, 2021 AMENDED Joint IOU Report (PDF, Excel)
July 21, 2020 Joint IOU Report (PDF, Excel)
January 21, 2020 Joint IOU Report (PDF, Excel)
July 21, 2019 Joint IOU Report (PDF, Excel)

Program Administrator Semi-Annual Progress and Expense SOMAH Reports

Pursuant to Appendix B of D.17-12-022 the Program Administrator submits semi-annual reports to the Director of the Energy Division on progress of the SOMAH program. These reports are also available on California Distributed Generation Statistics.

July 30, 2024 Program Administrator Report (PDF, Excel)
January 1, 2024 Program Administrator Report (PDF, Excel)
July 30, 2023 Program Administrator Report (PDF, Excel)
January 1, 2023 Program Administrator Report (PDF, Excel)
July 30, 2022 Program Administrator Report (PDF, Excel)
January 31, 2022 Program Administrator Report (PDF, Excel)
July 30, 2021 Program Administrator Report (PDF, Excel)
January 1, 2021 Program Administrator Report (PDF, Excel)
July 30, 2020 Program Administrator Report (PDF)
January 1, 2020 Program Administrator Report (PDF)

The most recent SOMAH Program Semi-Annual Expense Reports can also be downloaded on DG Stats here.

SOMAH Evaluation Reports

Pursuant to AB 693, D.17-12-022 and PU Code 2870(j)(1) and PU Code 913.8, Energy Division is directed to provide regular evaluations to the legislature of the SOMAH Program.

Evaluation reports:

2023 Triennial SOMAH Evaluation Report (Appendix F includes Evaluator Response to Comments
- Response to Recommendations (RTR) for 2023 Triennial SOMAH Evaluation (Program Administrator Response to Comments)
2023 Triennial SOMAH Evaluation Research Plan and 2023 Triennial SOMAH Evaluation Research Plan Response to Comments
2022 Vendor Assessment Report and the “Response to Recommendations” Table
2021 Phase II Evaluation Report and Appendix (Appendix Zip File)
- Phase 2 Evaluation Report “Response to Recommendations” Table. The SOMAH PA and the IOUs have responded to public comments here.
2020 Phase II SOMAH Process and Impact Assessment Research Plan
2020 Phase I SOMAH Process and Impact Assessment Report
SOMAH Process and Impact Assessment Research Plan

Evaluation webinar slides:

2023 Triennial SOMAH Evaluation Report Presentation
2023 Triennial SOMAH Evaluation Research Plan Presentation
2021 Draft Phase II Evaluation Report Webinar Slides located here.
2020 Phase II SOMAH Process and Impact Assessment Draft Report Webinar Slides located here.
2020 SOMAH Process and Impact Assessment Draft Report Webinar Slides located here.
2020 SOMAH Process and Impact Assessment Draft Research Plan Public Webinar Slides located here.