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

TAX CREDITS

$ per AC Watt Incentive

ITC

LIHTC

Tenant

Common

2020-2021

2021-2022

2020-2021

2021-2022

No

No

$3.04

$2.97

$1.04

$1.02

Yes

No

$2.14

$2.09

$0.76

$0.74

No

Yes

$2.14

$2.09

$0.76

$0.74

Yes

Yes

$1.52

$1.49

$0.57

$0.56

According to the SOMAH Program Handbook, incentive levels will be reduced annually starting July 1, 2020, by either 5% or based on the National Renewable Energy Lab’s cost analysis (whichever is less). If the application territory is on a waitlist, the SOMAH PA shall apply the current incentive rate when it reaches Reservation Request review to the waitlisted application.

Decision 17-12-022 (section 4.1, pages 39-43) discusses SOMAH’s incentive structure and decides that, “under the structure adopted here, incentive levels will decrease by the annual percent decline in residential solar costs as reflected by the National Renewable Energy Lab reports, or 5% annually, whichever is less.”

Review Analysis

The program will continue to operate until 2029 with renewed annual funding of up to $100 million per year from the California Climate Investments initiative. Funds originate from cap-and-trade auction proceeds deposited in the Greenhouse Gas Reduction Fund and used to further the state’s objectives to decarbonize and curb climate change.

Collections for each funding cycle are expected to be available between December and February, and the funds for each utility territory may be released at different times. Collections are based on each utility’s Energy Resource Recovery Account (ERRA) or Energy Cost Adjustment Clause (ECAC). For budget information and current available funding, please visit California Distributed Generation Statistics.

CaliforniaDGstats