SOMAH low-income solar program now covers energy storage in California
New incentives can cover up to 100% of battery costs for eligible affordable housing properties
California’s largest low-income solar program is now helping cover the cost of energy storage. The Solar on Multifamily Affordable Housing (SOMAH) program, which provides solar incentives to qualifying affordable housing properties, has expanded to include energy storage systems paired with new solar installations.
The incentive is designed to support California’s push toward energy resilience and equity. With backup battery storage, multifamily housing can reduce energy bills for tenants, avoid costly peak-time usage, and provide emergency power during outages — an increasingly vital benefit in a state prone to wildfire-related shutoffs and extreme heat events.
“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.”
How it works
The new storage incentives can cover up to 100% of eligible project costs, depending on system size and the level of benefit provided to tenant units. Battery systems must be installed alongside new SOMAH-approved solar projects and can serve both tenant units and common areas — but the majority of the benefit must flow to tenants.
To qualify, properties must meet SOMAH’s standard eligibility criteria: they must serve deed-restricted low-income households and be located in utility territories served by PG&E, SCE, SDG&E, Liberty Utilities, or PacifiCorp.
SOMAH storage budget
In total, $184 million has been allocated for SOMAH’s energy storage expansion over the next seven years. This comes on top of the more than $240 million already awarded or reserved for SOMAH solar projects since the program launched in 2019. To date, SOMAH has supported more than 100 MW of solar capacity, serving over 59,000 tenant households.
Other recent program changes include additional funding for roof repairs to support solar installation and streamlined approval processes to boost participation in underrepresented regions.
SOMAH remains a cornerstone of California’s clean energy equity efforts, delivering long-term financial benefits to low-income residents and property owners while creating local clean energy jobs. Administered by a coalition of nonprofits — including GRID Alternatives, CSE, Association for Energy Affordability, and California Housing Partnership — SOMAH continues to be the largest low-income solar program in the U.S.
