New CA incentive helps affordable housing properties add energy storage with solar
Change means greater energy resilience and savings for low-income tenants
(San Diego, July 31, 2025) — California apartment owners and managers who provide housing for low-income residents can now access major cost savings on energy storage systems through the state’s Solar on Multifamily Affordable Housing (SOMAH) Program.
The new incentive offering makes it more affordable for eligible properties to pair storage with solar energy systems, boosting energy resilience for residents while lowering long-term electricity costs. Energy storage systems must be paired with new SOMAH solar installations.
Incentives can cover up to 100% of eligible storage project costs, depending on system size and tenant benefit. Funding is available for systems designed to serve tenant units, common areas, or both, as long as the majority benefits tenant units. By capturing excess solar energy, storage can reduce utility bills, provide backup power during outages and support California’s transition to clean, resilient energy.
“During a planned power outage or an emergency, energy storage can keep the lights on, the refrigerator cold, and cell phones charged,” said Anna Taleysnik-Mehta, SOMAH senior project manager at the Center for Sustainable Energy. “It’s also a smart way to manage your property’s energy costs by using stored solar power during the hours when electricity prices are highest.”
Nearly $184 million has been allocated statewide for energy storage incentives over the next seven years. To qualify, properties must meet existing SOMAH eligibility requirements, including serving deed-restricted low-income households and being in a utility territory served by Pacific Gas & Electric, Southern California Edison, San Diego Gas & Electric, Liberty Utilities or PacifiCorp.
Other recent changes to the SOMAH Program include expanded funding for roof repairs needed to install solar and streamlined approval and payment processes in areas with low program participation.
A program of the California Public Utilities Commission, SOMAH delivers clean solar energy and monthly utility bill credits to hundreds of thousands of low-income residents that otherwise would not have access to renewable energy for their homes.
Since its launch in 2019, SOMAH has awarded and reserved more than $240 million in incentives to support over 100 megawatts of solar capacity serving more than 59,000 tenant households across the state. It is the largest low-income solar program in the nation.
SOMAH's unique, community-based approach ensures long-term financial benefits for low-income households and property owners, helps accelerate the solar market on multifamily housing and creates jobs in disadvantaged and low-income communities.
To learn more about SOMAH’s energy storage incentives or apply, visit calsomah.org/resources/program-handbook.
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The Solar on Multifamily Affordable Housing (SOMAH) Program provides incentives for solar and energy storage installations on California’s low-income housing, helping reduce energy bills and promote clean energy equity. Funded by the California Public Utilities Commission, SOMAH is administered by a coalition of nonprofits, including the Center for Sustainable Energy (CSE), GRID Alternatives, Association for Energy Affordability (AEA) and California Housing Partnership Corporation (CHPC).
