The price of a solar photovoltaic (PV) system is determined by numerous factors, including system components and configuration, the difficulty of installation and available incentives. The cost of a solar PV system is measured in dollars per watt. The current average installed cost per watt for a multifamily solar PV system is $2-4 per watt. This means the average 70-kW multifamily system will cost $140,000-$280,000, prior to tax credits and incentives.

Visit California Distributed Generation Statistics website to view the current average cost of SOMAH projects in your area.

Visit California DG Stats

The SOMAH application process requires a moderate investment of time to gather information and documentation, complete forms and obtain multiple bids. Property owners can designate a third party, such as their contractor, to complete the application for them, but should still expect to dedicate staff time to overseeing the project and meeting property owner requirements.

Further, SOMAH applicants applying for systems 10 kW or larger are required to submit an application deposit. The application deposit can be paid by the property owner, or a third party on their behalf. The amount of the application deposit is based on system size.

Once the installed SOMAH installation has been approved for incentive payment, the application deposit will be returned in full.

Application deposits

kW ≤

Deposit

10-50

$1,250

50-100

$2,500

100-250

$5,000

250-500

$10,000

500-1000

$20,000

The SOMAH program provides fixed, upfront, capacity-based incentives for qualifying solar photovoltaic (PV) systems. Incentive levels are based on:

  • The percentage of a solar energy system’s output allocated to tenants versus common areas
    • A minimum of 51% must be allocated to tenants
    • Incentives are larger for the tenant portion of the system and may cover up to the full cost of tenant load
  • Whether the system will be funded by the investment tax credit (ITC) or low-income housing tax credit (LIHTC)
  • Did you know? The SOMAH program’s incentive rates will be reduced annually (starting 12 months after the program launch date) by either 5% or based on the National Renewable Energy Lab’s cost analysis (whichever is less). The annual incentive step-down will occur July 1, 2020. Sign up to receive SOMAH updates.

SOMAH incentive rate by tax credit funding and tenant/common area allocation

TAX CREDITS

$ per AC Watt Incentive

ITC

LIHTC

Tenant

Common

No

No

$3.20

$1.10

Yes

No

$2.25

$0.80

No

Yes

$2.25

$0.80

Yes

Yes

$1.60

$0.60

System cost example for a property with a tenant allocation of 15 kW and a common area allocation of 12.3 kW

Scroll to see more

Scenario

Total system size

Tenant allocation

Rate

Tenant incentive

Common area allocation

Rate

Common area incentive

Total incentives

No tax credits applied

27.3 kW (27,300 watts)

15 kW

$3.20

$48,000

12.3 kW

$1.10

$13,530

$61,530

With ITC tax credits applied

27.3 kW (27,300 watts)

15 kW

$2.25

$33,750

12.3 kW

$.80

$9,840

$43,590

With ITC and LIHTC tax credits applied

27.3 kW (27,300 watts)

15 kW

$1.60

$24,000

12.3 kW

$.60

$7,380

$31,380

Scroll to see more

Scenario

Total system size

Tenant allocation

Rate

Tenant incentive

Common area allocation

Rate

Common area incentive

Total incentives

No tax credits applied

27.3 kW (27,300 watts)

20 kW

$3.20

$64,000

7.3 kW

$1.10

$8,030

$72,030

With ITC tax credits applied

27.3 kW (27,300 watts)

20 kW

$2.25

$45,000

7.3 kW

$.80

$5,840

$50,840

With ITC and LIHTC tax credits applied

27.3 kW (27,300 watts)

20 kW

$1.60

$32,000

7.3 kW

$.60

$4,330

$36,380

Find a SOMAH contractor

Ready to get started? Find an eligible SOMAH contractor.

Find a Contractor

No-cost technical assistance

Not sure where to start? Learn more about the technical assistance services provided by the SOMAH program.

More about Technical Assistance