As California continues to lead the nation in clean energy innovation, it faces a dual challenge: expanding renewable energy access while tackling housing affordability. The Solar on Multifamily Affordable Housing (SOMAH) Program bridges these two priorities, offering an unprecedented opportunity for affordable housing providers and residents to benefit directly from solar power.

In this blog, we’ll break down why SOMAH is such a transformative program, who qualifies, how it offsets energy costs, how to apply—and why now is the perfect time to partner with experts like Simmitri to take full advantage of this initiative.

What Is the SOMAH Program?

Launched in 2019, the SOMAH Program was created by California Assembly Bill 693 to support the state’s equity and climate goals. Funded by up to $100 million annually through California’s greenhouse gas cap-and-trade program, SOMAH offers financial incentives to install solar photovoltaic (PV) energy systems on existing multifamily affordable housing.

Unlike standard solar rebate programs that primarily benefit property owners, SOMAH requires that at least 51% of the solar system’s output directly offset tenant energy bills. This makes SOMAH one of the most tenant-focused solar incentive programs in the country.

The Core Benefits of SOMAH

Energy Cost Savings for Tenants and Property Owners

SOMAH ensures that the majority of the solar electricity generated goes toward reducing tenants’ electricity bills—up to 100% in some cases. Meanwhile, property owners can benefit from reduced common area energy expenses and long-term asset value appreciation.

High Financial Incentives

SOMAH offers one of the most generous solar rebates in the state. Depending on the system size and allocation, eligible properties can receive up to $3.20 per watt of installed capacity. For comparison, a 100-kW system could earn $320,000 in upfront incentives—greatly reducing the need for out-of-pocket investment.

Long-Term Environmental Impact

By integrating solar into low-income housing, SOMAH helps California meet its climate goals while ensuring underserved communities share in the benefits. Every kilowatt-hour generated from solar reduces the demand on fossil fuels, lowers greenhouse gas emissions, and supports local resilience during energy disruptions.

Job Creation and Workforce Development

SOMAH includes a unique job training requirement. Participating contractors must provide paid, hands-on solar installation training to local job seekers, prioritizing individuals from low-income or disadvantaged communities. This workforce development aspect helps build sustainable careers while serving local communities.

Who Qualifies for SOMAH?

To be eligible for SOMAH, properties must meet the following requirements:

Affordable Housing Status: Properties must be deed-restricted as affordable for at least 10 years.
Multifamily Units: The building must have at least five rental housing units.
Tenant Eligibility: At least 80% of the households must have incomes at or below 60% of Area Median Income (AMI).
Utility Participation: The property must be in the territory of one of the following utilities:
- Pacific Gas and Electric (PG&E)
- Southern California Edison (SCE)
- San Diego Gas & Electric (SDG&E)
- Liberty Utilities
- PacifiCorp

What Types of Properties Benefit the Most?

SOMAH is ideal for:

Senior living affordable housing complexes
Section 8 housing developments
Low-income multifamily housing co-ops
Affordable workforce housing buildings
Low-income properties owned by nonprofits or public housing authorities

Whether you’re a property management company, nonprofit housing developer, or community land trust, SOMAH can dramatically enhance your sustainability profile and financial bottom line.

How to Apply for SOMAH

The SOMAH application process is comprehensive, but it’s designed to ensure fairness and maximum community benefit. Here’s an overview:

Submit a Reservation Request

The application opens on a first-come, first-served basis when funds are available. A Reservation Request includes:

Proof of eligibility (deed restriction, income documentation)
Site details
Tenant benefit plan
Workforce development plan

Pre-Installation Requirements

Once your reservation is approved, the property must meet various requirements before proceeding:

A signed contract with a SOMAH-eligible contractor
Utility interconnection documents
Job trainee hiring plan
Proof of compliance with SOMAH’s tenant education and benefit rules

System Installation and Inspection

After installation, the system undergoes inspection and verification to ensure:

Proper tenant benefit allocation
Job training was completed
Energy savings data can be monitored

Receive Incentives

Following successful inspection and documentation, incentives are disbursed directly to the applicant or designated party (often the contractor or financier).

Tip: Working with an experienced energy partner like Simmitri can significantly simplify the process, helping you avoid delays, maximize incentives, and ensure compliance.

Why SOMAH Is More Important Than Ever

Combating Energy Insecurity

Low-income families often spend a disproportionate amount of income on utility bills—sometimes as high as 15–20%. SOMAH directly addresses this by giving tenants access to clean energy savings without raising rent or displacing residents.

Supporting California’s Clean Energy Mandates

The state has aggressive goals to reach 100% carbon-free electricity by 2045. Programs like SOMAH ensure that affordable housing isn’t left behind in the clean energy transition.

Making Green Building Equitable

Historically, solar adoption has been highest in higher-income areas. SOMAH reverses this trend by bringing the economic, health, and environmental benefits of solar to frontline communities.

The Role of Simmitri in SOMAH Success

Simmitri brings over 30 years of experience in solar installation, energy storage, and smart home solutions. We understand the nuances of SOMAH regulations, utility coordination, and project design. Here’s how we help:

Feasibility Studies: We evaluate your property and provide a roadmap to SOMAH success.
Turnkey Project Management: From application to installation and tenant education, we handle every step.
Compliance Support: Avoid costly missteps with expert guidance on SOMAH’s rules and reporting.
Workforce Development Coordination: We help you meet job training requirements while uplifting the community.
Battery + EV Charger Integration: Simmitri can pair your SOMAH system with battery storage or EV charging infrastructure for greater grid independence.

Are you a property owner, manager, or affordable housing advocate ready to bring solar to your community?

Simmitri is here to help you unlock the full potential of the SOMAH program.

Contact us today for a free consultation. We’ll guide you through every step of the process—from eligibility to installation—and ensure your tenants and property benefit for decades to come.

Frequently Asked Questions about SOMAH

Can tenants directly apply for SOMAH?

No, SOMAH is designed for property owners or housing developers to apply. However, tenants can encourage their landlords to participate.

What costs are involved for property owners?

Depending on the project and incentive level, SOMAH can cover a substantial portion of installation costs. Simmitri also offers $0 down solar options, PPAs, and financing for remaining costs.

How long does the SOMAH application process take?

The timeline varies but generally ranges from 6 to 12 months from reservation to completion. Working with an experienced partner can speed up this process.

Do SOMAH incentives expire?

SOMAH funding is available annually and can be exhausted. Applying early each program year maximizes your chance of approval.

What happens if tenants move out?

New tenants in qualifying units will continue to benefit from allocated solar energy, provided the building maintains eligibility and compliance.