HOW DOES SOLAR ON MULTIFAMILY AFFORDABLE HOUSING (SOMAH) WORK?

The program works by giving credits to low-income tenants through virtual net metering (VNEM) tariffs, which allow system generation bill credits to be allocated among housing occupants. Each solar project will provide tenants with at least 51% of VNEM credits, saving them a significant amount of money.  Property owners will still be eligible to receive the 26% Federal Incentive Tax Credit upon purchasing the solar system and low income housing tax credit (LIHTC), 49% of VNEM tariffs/savings will go to offset your common area electric bill.

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WHICH PROPERTIES ARE ELIGIBLE FOR SOMAH?

There are several non-negotiable requirements that must be met in order to qualify for SOMAH, these are the important ones:

• The property in question must be an existing building.

• At least 1kW of electricity must be produced by the installed solar system, and no more than 5MW, alternating current rated peak electricity.

• Property must be in a designated disadvantaged community (as defined by CalEPA), or 80% of the apartment’s households must earn at or below 60% of the median area income.

• The building’s affordability restrictions must have at least 10 years remaining on the term.

• You must separately meter units, and they must be eligible for a virtual VNEM tariff.

• Your utility providers must be Pacific Gas and Electric, San Diego Gas & Electric, Southern California Edison, Liberty Utilities, or PacifiCorp.

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TIMELINE AND FUNDING:

The $1 billion program, which provides up to $100 million annually in incentives, will serve multi-family buildings with funding for up to 10 years. The target has been set at 300 megawatts of generating capacity by 2030, which means you are best served by acting fast. Now is your time to lock in funding that can cover up to 100% of your solar system cost!

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