Monday, January 8, 2018

Solar Incentive Increases for California Low-Income Tenants


Since 2013, Clean Energy Solutions has provided affordable sustainable power to homeowners as well as schools, government groups, nonprofit organizations, and businesses across Greater Los Angeles, California. In San Bernardino, Clean Energy Solutions partnered with school officials to offer special pricing to families throughout the district.

For families with lower income levels, government rebates can significantly impact the affordability of solar energy. The California Public Utilities Commission (CPUC) has now recognized this truth through approval of the Solar on Multifamily Affordable Housing (SOMAH) program, which enables tenants in low-income housing to receive rebates from solar installations.

Program incentives are scheduled to total $1 billion, or up to $100 million per year for 10 years. This funding will increase the amount that tenants will collect under AB 693, a piece of legislation co-sponsored by the California Environmental Justice Alliance (CEJA) and the California Solar Energy Industries Association (CALSEIA). The SOMAH program clarifies many of the details of this process, including eligibility and funding for the distribution of tenant credits.

Funding for the program will be through the state greenhouse gas emissions reduction initiative, and credits will undergo allocation through virtual net metering (VNEM). SOMAH allows for additional incentives at a rate of $3.20 per watt for tenant-serving systems and $1.10 per watt for common areas. Currently, the program plans for an incentive decline based on 5 percent per year or the rate of residential solar cost decline.