1.1.1 Legislative and Regulatory Background

Assembly Bill (AB) 693 (Eggman), Stats 2015, Chapter 582 created the Multifamily Affordable Housing Solar Roofs Program, funded at up to $100 million annually from the investor-owned utilities' share of greenhouse gas (GHG) auction proceeds. Senate Bill (SB) 92, adopted with the 2017-2018 State Budget, further clarified program funding. Decision 17-12-022 (December 14, 2017) implemented AB 693 and changed the name of the program to the Solar on Multifamily Affordable Housing (SOMAH) Program to distinguish it from other state clean energy and low-income solar programs. Decision 17-12-022 established the program's budget, incentive structure and eligibility policies, among other items. It also determined that the SOMAH Program would be administered by a single statewide program administrator (PA) selected through a competitive request for proposals process. Although the SOMAH Program shares many characteristics with the Multifamily Affordable Solar Housing (MASH) program, this Decision delineated that SOMAH is, in fact, a different program than MASH and requires new rules and procedures to be developed.

On October 7, 2023, Senate Bill (SB) 355 (Eggman) was signed by the Governor. Among other things, SB 355 extends the SOMAH Program through December 31, 2032; revises the income eligibility pathway to require that at least 66 percent of the property's residents have incomes at or below 80 percent of the area median income, as defined in subdivision (f) of Section 50052.5 of the Health and Safety Code; and adds two new eligibility pathways for properties owned by tribes and for rental housing properties owned by a public housing authority created pursuant to the Housing Authorities Law [Chapter 1 (commencing with Section 34200) of Part 2 of Division 24 of the Health and Safety Code] or a public housing agency, as defined in Section 1437a of Title 42 of the United States Code. The SOMAH PA proposed changes via SOMAH Program Handbook Eight to implement these program modifications pursuant to SB 355.

1.1.2 Program Administration

On March 29, 2018, the program administration team comprised of the Association for Energy Affordability (AEA), the Center for Sustainable Energy (CSE), and GRID Alternatives (GRID), was selected to administer the SOMAH Program. This team of nonprofit organizations and its subcontractors, including the California Housing Partnership Corporation (CHPC), the Rising Sun Center for Opportunity (formerly, the Rising Sun Energy Center) and rotating community-based organizations, is referred to as the SOMAH Program Administrator (SOMAH PA or PA), and administers the program in all IOU territories. The SOMAH PA functions as a single entity, and offers a set of comprehensive, no-cost services to program participants including affordable housing owners/operators, contractors, tenants and job training participants, among others.

1.1.3 SOMAH Program Goals

The SOMAH Program is statutorily mandated to provide incentives for the installation and interconnection of at least 300 MW CEC-AC of solar generating capacity on qualified multifamily affordable housing statewide by December 31, 2032.

All projects are required to provide direct economic benefits to tenants and the majority of system capacity must serve tenant loads. The program serves qualified affordable housing, and the program also includes specific eligibility for projects sited in “disadvantaged communities (DACs)”, as defined by the California Environmental Protection Agency (CalEPA) and the California Communities Environmental Health Screening Tool (CalEnviroScreen). ¹ CalEnviroScreen identifies California communities by census tract that are disproportionately burdened by, and vulnerable to, multiple sources of pollution. In an effort to prioritize and increase participation in DACs, the SOMAH PA has set a programmatic benchmark or target of 40% of all participating SOMAH projects to be located in DACs, by 2026. The SOMAH PA acknowledges that this will take the support of program partners, stakeholders, and may require new strategies and potential program changes to ensure the program can meet this target.

SOMAH also includes program requirements and initiatives related to energy efficiency, job training and workforce development opportunities emphasizing local and targeted hires, and tenant education and engagement. These program elements will allow SOMAH to create broad and meaningful benefits in communities throughout the IOU territories.

The first round of SOMAH's third-party, Commission-directed program evaluations commenced in 2020 to assess initial program processes and impacts, and the program will be similarly evaluated every three years.

1.1.4 SOMAH Program Budget

Pursuant to AB 693 and SB 92, Decision 17-12-022 establishes a SOMAH Program budget of up to $100 million per year. SB 92 requires the Commission to annually authorize either $100 million or 66.67% of available funds, whichever is less, from utility greenhouse gas auction revenue (via the California Climate Investments initiative), for the SOMAH Program. ² Collections began with the fiscal year that commenced July 1, 2016, and end with the fiscal year ending June 30, 2020. In April 2020, via Decision 20-04-012, the Commission determined that revenues were available after 2020, and that there was adequate interest and participation in the program, and authorized continued annual collections through 2026. The program is authorized to run with these collections until December 31, 2032.

Program funding differs by IOU territory. Table 1 provides an illustrative example of how funds may be allocated in a given program year. The specific IOU allocation will depend on that IOU's auction proceeds, which vary. Projects may only receive incentives from the IOU in which the project is located and interconnected. Administrative expenses, including the expenses of the program administrator, the IOUs, and the CPUC, may not exceed 10% of the program budget each year, as shown in Table 2.

It is important to note that available funding for the SOMAH Program depends on greenhouse gas (GHG) auction revenues, and there is no guarantee of funding in future program years beyond what has been collected.

The SOMAH PA will publish and update the incentive budget for each IOU to the California Distributed Generation Statistics (CalDGStats) website (californiadgstats.ca.gov) based on each quarter's GHG auction revenues, following the Commission's authorization to release Energy Resource Recovery Account (ERRA) funds in the cases of PG&E, SCE, and SDG&E, or Energy Cost Adjustment Clause (ECAC) funds in the cases of PacifiCorp and Liberty. The budget information will include all program dollars collected to date, by fiscal year, and identify encumbered program funds and available program funds. Any unused funds in one program year will roll over to become available in the next program year.

Because incentive amounts are specifically capped by each IOU territory, the SOMAH Program will have five individual reservation queues and up to five waitlist queues, as further described in Section 4.1, Application Pipeline Management. Reservations must meet the milestone requirements in order to maintain the reservation, as detailed in Section 4.2 Application Process. The CalDGStats website will be updated weekly with information related to incentives reserved and remaining in each IOU territory.

While this version of the SOMAH Handbook is in force, there will be no limits on the number of applications any one entity (including property owner/operators, contractors, developers, etc.) may submit. As part of the initial program evaluation that commenced in 2020, this process will be assessed and may be modified to place limits on an entity's participation, if deemed necessary for efficient program functioning and attainment of broad public policy objectives, such as, but not limited to, contractor diversity or the geographic distribution of project sites throughout the state.

1.1.5 Capacity Targets

The statutorily determined capacity goal for SOMAH is at least 300 MW CEC-AC of interconnected capacity by no later than December 31, 2032. In order to guarantee that there is sufficient incentive funding for the program to reach its 300 MW capacity goal, incentive levels may be adjusted at various points in the program.

1.1.6 Incentive Overview

SOMAH provides fixed, upfront, capacity-based incentives for qualifying solar energy systems, using the Expected Performance Based Buydown (EPBB) methodology, as detailed in Section 3, SOMAH Incentive Structure. The EPBB incentive is paid based on verified solar energy system characteristics such as location, system size, shading, and orientation. At least 51% of the system's electric output must directly offset tenant load and be provided to tenants in the form of virtual net energy metering (VNEM) bill credits, as further detailed in Section 2.2, General Eligibility Guidelines. The amount of the incentive for SOMAH depends on the capacity of the installed system, the energy percentage split between tenant and common area serving-load, and the other funding resources that the project may leverage, such as the Federal Investment Tax Credit (ITC) and Low-income Housing Tax Credit (LIHTC).

The SOMAH Program offers two payment options. The total incentive can be paid, in full, after the system has been installed, received Permission to Operate from the Utility and has fulfilled all SOMAH requirements. Alternatively, Applicants may opt-in to the Progress Payment Request (PPR) process once the equipment is installed, but prior to receiving Permission to Operate. In order to be approved for a progress payment, the Applicant will need to provide additional required documentation. See Section 3, SOMAH Incentive Structure, for details.

1.1.7 Application Tracks

Property owners and operators who meet program eligibility requirements (as detailed in Section 2, Program Eligibility Criteria and Requirements) are invited to apply for the SOMAH Program. All program applications and required documents are processed via an online application portal, and comprehensive application information is found in in Section 4, Application Process for SOMAH Projects, and at CalSOMAH.org.

There are two pathways, designated as “tracks,” to apply for a SOMAH incentive: Track A and Track B. Track A is intended for property owners who would like to receive Technical Assistance services from the PA to help assess the solar potential at their property, and/or identify eligible contractors for their project. Track B is designed for property owners who do not require technical assistance to submit a project reservation and have identified an eligible contractor they would like to work with for their project. The Technical Assistance services provided by the PA are described in Section 1.3.1, Technical Assistance Services, and Track A and Track B are further detailed in Section 4, Application Process for SOMAH Projects.

1.3.1 Technical Assistance Services

The primary objectives for Technical Assistance (TA) are to ensure affordable housing owners/operators receive accurate, useful, and helpful information; have a positive experience accessing SOMAH Program incentives; develop a robust understanding of other energy programs and options that can be pursued as a coordinated approach with their solar project; and receive assistance leveraging those programs.

SOMAH TA is a voluntary offering available to property owners/operators, tenants, and contractors participating in the program. Technical Assistance is only available for projects that are determined to be eligible and will be provided as long as the project continues to meet all program-required milestones, as described in Section 4.2, Application Process. All projects that request TA will be assigned a designated SOMAH Energy Project Manager (EPM) who will serve as the single point of contact between the property owner/operator and the program.

The following subsections describe the Technical Assistance services offered in each phase of the process:

1.3.2 Referral Services to Other Energy-Related Programs

The SOMAH PA and the Energy Project Manager (EPM) are available to discuss additional clean energy and energy efficiency program opportunities with the property owner/operator. The EPM will identify potential energy, water, and health-related programs as relevant to the property and/or as requested by the property owner/operator. If the property owner/operator is interested in participating in any of those programs, the EPM will make a direct referral to that program administrator, including introduction and a handoff between that program administrator's point of contact and the designated contact for the SOMAH property.

Referrals between the participating property and the Energy Savings Assistance (ESA) program is a SOMAH Program requirement (as detailed in Section 2.4.2, Energy Saving Assistance (ESA) Program Referral Requirements).

The SOMAH PA and EPM also offer connections to other programs, such as those covering topics detailed below:

• Energy efficiency (whole building, measure-focused, direct install, and low-income)
• Demand response and load shifting
• Battery storage
• Electrification
• Electric vehicle charging

An up-to-date program list of direct SOMAH Program referrals will be maintained on CalSOMAH.org.

1.3.3 Services to Support Job Training Participants and Job Training Organizations

The SOMAH PA will support job training participants and job training organizations in the following ways:

• Developing the SOMAH Job Training Portal (see Section 2.6.7.1, SOMAH Job Training Portal) and supporting participants in accessing and utilizing it
• Developing and publicizing standardized information regarding SOMAH, the solar industry, responsibilities of trainees, job requirements and expectations, and safety standards
• Developing a common job description template for SOMAH trainee opportunities that includes expected total hours, types of work, pay scale, and pay timing
• Convening and working with statewide job training organizations, including a Regional Job Training Organization Task Force, to provide best-practice curriculum development and other technical assistance resources based on proven, successful solar job training models
• Compiling the Job Training Organization Directory and making it publicly available
• Providing opportunities for further training for Job Training Participants, which may include resume assistance, interview workshops and notices of relevant job opportunities. These services may also be available to existing contractor employees meeting the local and targeted hire definitions who are interested in increasing their skills and accessing career ladder opportunities.

1.3.4 Tenant Education and Support Services

The SOMAH Program is designed to maximize direct benefits to tenants, as well as provide tenant education and promote tenant engagement with the solar project and energy efficiency initiatives. The PA provides participating property owner/operators with SOMAH-approved information on energy efficiency, TOU rates (if relevant), bill interpretation, and solar training opportunities for their tenants. SOMAH-approved education materials are produced in multiple languages and available for download at CalSOMAH.org. The SOMAH PA will coordinate with the IOUs on an as-needed basis to ensure alignment with existing materials and outreach efforts targeting tenants.

The SOMAH PA also provides a direct phone “hotline” at 800-843-9728 for tenant questions related to solar, energy efficiency services, VNEM credits, job training and general information. The SOMAH PA may connect tenants with IOU staff and resources to address questions about rates and TOU rate options.

The property owner/operator(s) are required to inform tenants about SOMAH participation and provide them with resources such as the SOMAH-approved information and the phone hotline for additional support (see Section 2.5, Tenant Education Requirements). Guidance on tenant outreach for this purpose is available at CalSOMAH.org/tenant-engagement-toolkit.

2.1.1 Applicant

The Applicant is the entity that completes and submits the SOMAH Program application. The Host Customer may act as the Applicant or designate a third-party to act as the Applicant on their behalf. Examples of third-party Applicants include but are not limited to engineering firms, solar contractors, equipment distributors, energy service companies (ESCO) and equipment lessors. While the third-party Applicant can complete and submit the SOMAH Program application, the Host Customer alone is the reservation holder and must obtain, evaluate, and select their bid/contractor (see below and Section 2.8.1, Multiple Bid Process).

2.1.2 Host Customer

The Host Customer must be the owner of, or person/entity responsible for, the property where the generating equipment will be located. However, the Host Customer does not need to be the entity responsible for paying for retail level electric services.

The Host Customer is the incentive reservation holder, and alone will retain sole rights to the incentive reservation and corresponding incentive application number. The Host Customer has the right to designate a third-party Applicant to act on their behalf throughout the application process. The Host Customer also has the right to change these parties at any given time with prior written notice to the SOMAH PA. However, the Host Customer is not permitted to change the project site associated with the incentive application, as further described in Section 4.5.3, Application Site Address Transfers Not Allowable. The Host Customer shall always be party to the SOMAH Contract (the SOMAH Contract is a fully executed Reservation Request Form, submitted during the Reservation Request process), as detailed in Section C-1, SOMAH Program Handbook Requirements and Section C-11, Integration and Modification.

2.1.3 System Owner

The System Owner is the owner of the PV system at the time the incentive is paid. For example, when a vendor sells a turnkey system to a Host Customer, the Host Customer is the System Owner. In the case of a third-party-owned system (or leased system, for example), the third party (or lessor) is the System Owner.

The System Owner should be designated on the Reservation Request Form, if known at that time, and on the Incentive Claim Form. If different from the Host Customer, the System Owner shall also be a party to the SOMAH Contract. The Program Administrator may require documentation substantiating equipment ownership.

2.1.4 Solar Contractor

All systems must be installed by appropriately licensed California contractors in accordance with rules and regulations adopted by the State of California Contractors State Licensing Board (CSLB). Solar installation contractors must have an active A, B, C-10, or C-46 Contractor's license. The SOMAH PA will verify that the Solar Contractor has an active license with the California Contractors State Licensing Board (CSLB), in accordance with the above requirement, during the application review process.

Although not required, solar installation contractors are encouraged to become certified by the North American Board of Certified Energy Practitioners (NABCEP). For additional information on NABCEP, go to nabcep.org.

In all cases, systems must be installed in conformance with the manufacturers' specifications and with all applicable electrical and building codes and standards.

All contractors are required to complete an introductory workshop (Contractor Eligibility Workshop) on the SOMAH Program before they are authorized to participate in the program. These workshops will be hosted by the SOMAH PA immediately prior to program launch and on an ongoing basis thereafter. Information on upcoming workshops can be found on CalSOMAH.org. Contractors must also maintain good standing in the program in order to continue participation (as further described in Section 4.9, PA Recourse for Program Requirement Non-compliance).

2.1.4.1 Suspended Solar Contractor License

If it is determined that a contractors' CSLB license was suspended during the application process or if the Solar Contractor has been suspended from the SOMAH Program, the following will occur:

• All parties identified on the application will be notified of the suspension
• No SOMAH incentive payment will be made unless the system was interconnected prior to the suspension
• If the system has not yet been installed, the Host Customer will be able to hire a new contractor without losing the current incentive reservation and apply for an extension, if necessary.

The SOMAH PA will determine whether the project is eligible or ineligible to be paid the incentive. If the project is deemed to be payable, the SOMAH PA, in most cases, will only pay the Host Customer the incentive for the project.

2.1.5 Participating Job Trainee

A participating job trainee is an eligible job trainee, based on criteria defined in Section 2.6.5 Eligible Job Trainee, that has been hired by a participating SOMAH contractor to work on a SOMAH project.

2.1.6 Participating Job Training Organization

A participating job training organization is an eligible job training organization, based on criteria defined in Section 2.6.7, Eligible Job Training Programs, that has students or graduates participating and working on SOMAH projects or is actively engaged with the SOMAH PA on placing their students or graduates onto SOMAH projects.

2.1.7 SOMAH Advisory Bodies

The advisory bodies listed below are included for informational purposes and do not adhere to the Handbook in the same manner as the program participants listed above.

2.1.7.1 SOMAH Advisory Council

The purpose of the SOMAH Advisory Council (SOMAH AC) is to ensure that the voices and interests of equity-focused community advocates and key stakeholders remain at the center of the SOMAH Program and that SOMAH maximizes benefits to low-income tenants and DACs by advising the SOMAH PA on program development and implementation. SOMAH AC members represent the fields of environmental justice, workforce development/labor, tenant rights and economic justice, affordable housing, tribal communities, and the solar industry.

Accountability measures and process for removal of members is defined in the SOMAH Advisory Council bylaws.

2.1.7.2 SOMAH Job Training Organization Task Force

The purpose of the Job Training Organization Task Force (JTO Task Force) is to ensure that job training organizations' voices and interests remain at the forefront of the SOMAH Program's job training efforts and that trainees have a meaningful and career-advancing experience. The JTO Task Force is comprised of regionally diverse representatives from job training organizations such as California community colleges, career technical education programs, PV training programs offered to the public by local government workforce development programs, community nonprofits, private enterprises, investor- owned utilities, or electrical workers unions with 40+ hours of instructional and/or hands-on PV installation and design training or green building training. Accountability measures and process for removal of members is defined in the SOMAH JTO Task Force bylaws.

2.2.1 Eligible Multifamily Low-Income Housing Properties

The following are generally used to determine SOMAH Program eligibility:

1. Properties must be residential, multifamily low-income rental housing of at least five (5) units and may include manufactured home properties and mobile home properties.
2. Properties must be deed-restricted.
   • Eligible multifamily low-income properties must adhere to the Public Utilities Code Section 2852 (a)(3)(A)(i) compliance elements for multifamily residential complexes with deed restrictions or regulatory agreements pursuant to terms of financing ⁵ or financial assistance by one or more of the following:
     • Low-income housing tax credits
     • Tax-exempt mortgage revenue bonds
     • General obligation bonds
     • Local, state, or federal loans or grants
   • Rents for low-income tenants must be maintained within required limits pursuant to the property's affordable housing restrictions.
   • The deed restriction or regulatory agreement must be independently enforceable and verifiable and cannot be contingent upon participation in the SOMAH Program.
   • There must be at least 10 years remaining on the term of the property's affordability restrictions at the time of Reservation Request Package submittal. Properties with less than 10 years remaining that are willing to extend affordability requirements for a total of 10 years may access SOMAH Upfront Technical Assistance. Proof of completed extension of affordability restrictions from a state or local agency must be provided with the Reservation Request Package.
3. The project must satisfy one of the following:
   1. At least 66% of property residents must have incomes at or below 80% of the Area Median Income (AMI) ⁶ as determined by the Department of Housing and Community Development (HCD) ⁷
   2. The property is located in a Disadvantaged Community (DAC) as defined by CalEPA pursuant to Health and Safety Code Section 39711. For the SOMAH Program, this is defined as DACs that score in the top 25 percent of census tracts statewide in the CalEnviroScreen tool. It also includes the 22 census tracts that are in the highest 5% of the CalEnviroScreen's Pollution Burden. ⁸
   3. The property is owned by a tribe. Pursuant to Senate Bill (SB) 355, “tribe” means a California Native American tribe, as defined in Section 21073 of the Public Resources Code.⁹
   4. The property is rental housing property that is owned by one of the following:
      • A public housing authority created pursuant to the Housing Authorities Law [Chapter 1 (commencing with Section 34200) of Part 2 of Division 24 of the Health and Safety Code]; or
      • A public housing agency, as defined in Section 1437a of Title 42 of the United States Code.

   “California Native American tribe” means a Native American tribe located in California that is on the contact list maintained by the Native American Heritage Commission for the purposes of Chapter 905 of the Statutes of 2004. Please contact the SOMAH PA for additional details on the Native American Heritage Commission list and related eligibility.

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4. Existing housing properties and retrofits are presently eligible. New construction developments can participate pending future guidance that will be included in an updated version of the Handbook. For a solar system to be eligible for SOMAH as an existing property, the application for a solar permit must be dated after the issuance of the housing property's certificate of occupancy. Owners may submit a request for Upfront Technical Assistance for an otherwise eligible property that has not received its certificate of occupancy in order to ensure property will be solar ready upon securing a certificate of occupancy.
5. Units must be separately metered and eligible for a VNEM tariff. Master-metered housing properties are not currently eligible. At least 51% of the kilowatt-hours (kWh) from the solar electric system must go directly to tenant meters via VNEM.
6. Properties must be located in either PG&E, SCE, SDG&E, PacifiCorp, or Liberty service areas. The Host Customer at the property must be a customer of one of these IOUs, and the property must be physically connected to the electric utility transmission and distribution system.
7. Properties with CCA customers may participate if the serving CCA utilizes either the relevant participating Investor-Owned Utility's (IOU's) SOMAH VNEM tariff or the relevant participating CCA's own VNEM tariff if the CCA has its own separate SOMAH VNEM tariff.

2.2.2 Ineligible Multifamily Low-Income Housing Properties

The following are not eligible for incentives under the SOMAH Program:

• Properties that have received a final interconnection authorization letter dated more than 12 months prior to submitting a SOMAH Reservation Request Package. Systems that are installed prior to submitting a Reservation Request Package may be eligible for SOMAH if the project has not received a final interconnection authorization letter, or if the property received a final interconnection authorization letter dated less than 12 months prior to submitting a Reservation Request Package. If the project has received a final interconnection authorization letter, a copy of this letter must be provided by the applicant if requested by the PA.
• Properties owned by publicly-owned or investor-owned gas and/or electricity distribution utilities or any electrical corporation (as defined in Public Utility Code 218) that generates or purchases electricity or natural gas for wholesale or retail sales.
• Properties subject to any of the following U.S. Department of Housing and Urban Development (HUD) programs are not eligible for the SOMAH Program:
  • Section 101 Rent Supplement
  • Section 236 H. Section 236 Rental Assistance Payments (RAP)
  • Section 221 (d)(3) Below Market Interest Rate (BMIR)

2.3.1 Equipment Certifications, New Equipment, Not Pilot or Demonstration Systems

All major system components (panels and inverters) must not have been previously placed in service in any other location or for any other use case. Rebuilt, refurbished or relocated equipment is not eligible to receive SOMAH incentives.

Equipment that has received incentives from the Multifamily Affordable Solar Housing (MASH) program are not eligible to receive SOMAH incentives.

Components that are critical to the PV systems must be certified by a Nationally Recognized Testing Laboratory (NRTL). System component ratings must also be certified by the California Energy Commission (CEC) and placed on the CEC's Eligible Equipment List. Components must also meet all requirements for interconnection with the electric utility, including Rule 21 requirements.

The CEC provides a list of currently certified eligible equipment on the Go Solar California site at https://www.energy.ca.gov/programs-and-topics/programs/solar-equipment-lists or through its Call Center: 800-555-7794. Equipment is periodically added and removed from the CEC lists of eligible equipment, so Applicants should confirm that the components purchased for a system are eligible prior to installation.

All meters used in SOMAH for the PMRS requirements must be accurate to within ± 5%. A list of eligible PMRS providers may be found on the Go Solar CA website:
https://www.energy.ca.gov/media/3770

The SOMAH PA will confirm that equipment identified in the Reservation Request Package meets eligibility requirements prior to providing a Reservation Approval Notice. Equipment must be certified before any incentive payments will be made.

New panels added to existing inverter(s) that are already in service are not eligible to receive a SOMAH incentive.

2.3.2 Eligibility of Replacement PV Systems

Replacement solar energy systems may be eligible for the SOMAH Program provided that they meet the criteria for new systems found in Section 2.3.1, Equipment Certifications, Equipment Certifications, New Equipment, Not Pilot or Demonstration Systems, and replace a system that has been in service for 20 years and is outside the warranty terms. All replacement systems must meet all requirements of the SOMAH Program to be eligible for a SOMAH incentive.

2.3.3 System Sizing Requirements

2.3.4 Warranty Requirements

California Public Utility Code 387.5(d)(4) requires that all solar energy systems that receive an incentive must have a warranty of not less than 10 years to protect against defects and undue degradation of electrical generation output. The SOMAH Program requires more stringent warranties, as follows:

• All solar energy equipment for electricity generation (PV modules, inverters, tracking mechanisms) shall have a minimum 20-year performance warranty to protect against degradation of electrical generation output of more than 15% from their originally rated electrical output. This may require obtaining an extended warranty for some equipment.
• All contractors shall provide a minimum 10-year workmanship warranty to provide for no-cost repair and replacement of the system for any expenses not otherwise covered by the manufacturer.
• All contractors shall provide a minimum 20-year warranty to protect the purchaser against more than a 10% degradation of electrical generation output that may occur as a result of faulty installation.
• Meters must have a one-year warranty to ensure against defective workmanship, system or component breakdown, or degradation in electrical output of more than 15% from their originally rated electrical output during the warranty period. For meters that are integrated into the inverter, the inverter warranty requirement of 20 years will take precedence.

By signing the Incentive Claim Form, Host Customer and System Owners acknowledge that they have received a 10-year warranty for no-cost repair and replacement of the solar energy system from the Contractor, and that all system components meet the additional warranty terms, including the 20-year equipment warranties, described in this section.

2.3.5 Inspection Requirements

It is the intent of the SOMAH Program to provide incentives for reliable, permanent, safe systems that are professionally installed and comply with all applicable federal, state, and local regulations. The SOMAH PA will conduct a final system inspection for every Project during the Incentive Claim process to verify that the Project is installed as represented in the application, is operational, is interconnected, and conforms to the eligibility criteria of the SOMAH Program. See Section 4.8, Final Inspections, for a detailed description of the inspection process. A mandatory inspection is also required for all relocated equipment. The frequency and structure of inspections may be modified over the life of the SOMAH Program at the SOMAH PA's discretion.

In addition, the SOMAH PA will conduct energy efficiency site verifications on a sampling basis to verify accuracy and compliance with the energy efficiency requirements as detailed in Section 2.4, Energy Efficiency Requirements.

2.3.6 Interconnection, Performance and Permanency Requirements

Equipment installed under the SOMAH Program is intended to be in place for a minimum of 20 years. Only permanently installed systems are eligible for SOMAH incentives. This means that the solar energy system must demonstrate to the satisfaction of the SOMAH PA adequate assurances of both physical and contractual permanence prior to receiving a SOMAH incentive.

Physical permanence is to be demonstrated in accordance with industry practice for permanently installed equipment. Equipment must be secured to a permanent surface. Any indication of portability, including but not limited to temporary structures, quick disconnects, unsecured equipment, wheels, carrying handles, dolly, trailer or platform, will deem the system ineligible.

Under rare and extenuating circumstances, equipment relocation may be warranted. Allowance of the relocation without a clawback (return) of the SOMAH incentive is at the sole discretion of the SOMAH PA. See Section 4.9.4, Grounds for Incentive Payment Clawback or Reduction, for more information on incentive clawbacks. System Owners who have received a SOMAH incentive and have relocated their system must orient their relocated equipment to produce at least the same generation as their initial EPBB Incentive payment was based upon.

Contractual permanence corresponding to a period of 20 years is to be demonstrated as follows:

• All agreements involving the solar energy system receiving an incentive are to be provided to the PA for review as soon as they become available, but at the Proof of Project Milestone stage at the latest. These agreements include, but are not limited to, system purchase and installation agreements, warranties, leases, energy or solar services agreements, energy savings guarantees and system performance guarantees.
• The System Owner agrees to notify the PA in writing a minimum of 60 days prior to any change in either the site location of the solar energy system or change in ownership of the generation system if the change(s) takes place within the applicable warranty period. The warranty period for the SOMAH Program is 20 years.
• If the solar energy system is voluntarily removed by the System Owner prior to end of the 20-year warranty period, either:
  • The solar energy system may be installed at another site within the utility service territory within six months in accordance with the requirements of this section and with the approval of the SOMAH PA. The relocated system installed at the alternate site would not be eligible for an additional SOMAH incentive; or
  • The incentive shall be returned to the Program Administrator (prior to January 1, 2032), or the California Public Utilities Commission (after January 1, 2032); and
  • The System Owner would be unable to participate in the SOMAH Program for any additional installations under the SOMAH Program, including any active reservations that have not yet been paid.

A mandatory final inspection is required for all relocated equipment. See Section 4.8, Final Inspections, for more information.

2.4.1 Energy Efficiency Compliance Pathways

As part of SOMAH's EE requirements, participants must either complete an energy audit, or have recently participated in an EE program. The two possible pathways are further described below. Regardless of which pathway is pursued, the participant must submit a completed SOMAH Solar Sizing Tool (SST) as part of their application (see Section 2.3.3.4, Solar Sizing Tool and Section 4.2.3, Submit Energy Efficiency Compliance Milestone). Program participants may access SOMAH's Energy Efficiency and Clean Energy Technical Assistance as outlined in Section 1.3.1, Technical Assistance Services, for assistance complying with the EE requirements.

Pathway 1: Energy Efficiency Whole-Building Walkthrough Audit

Participants selecting this option must hire a credentialed energy auditor to provide a whole-building energy efficiency walkthrough audit. The cost of this walkthrough audit is the responsibility of the participant. The energy auditor shall possess at least one of the following credentials, and shall list their certification number(s) on the energy audit report and Solar Sizing Tool:

• BPI Multifamily Building Analyst (MFBA)
• California HERS Whole House Rater
• RESNET Rater
• GreenPoint Rater, Existing Home Multifamily
• AEE Certified Energy Manager
• American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) (BCxP, BEAP, BEMP or HBDP)
• Professional Engineer

The SOMAH PA will maintain a voluntary contact list of energy audit providers who meet one or more of these certifications, available at CalSOMAH.org Energy audit providers interested in being included on this list should contact the SOMAH PA. Whole building energy audits completed within five years prior to the SOMAH application date may comply if the audit, audit report, and auditor credentials meet SOMAH energy audit criteria.

The energy audit report shall at a minimum include the building systems and energy use details as identified in the Whole-Building Audit Requirements Checklist, which can be referenced at . These details align with those of an ASHRAE Level 1 Audit. Green Condition Assessments, High Performance Building Assessments, and Green Physical Needs Assessments that meet or exceed HUD, Fannie Mae, and Freddie Mac requirements will also meet the energy audit report requirements. Submitted energy audit reports will be reviewed by the SOMAH PA to verify alignment with the SOMAH audit requirements checklist.

The SOMAH PA will conduct site verifications on a sampling of projects to verify accuracy of the energy audit report and the SST, and any findings that are out of compliance will be relayed to the property owner and the energy audit firm. Findings may result in a reduction in the maximum size of the PV system, or a reduced SOMAH incentive based on the maximum size that is recalculated after correction of non-compliance findings. Any site verifications conducted by the SOMAH PA to verify the accuracy of energy audit reports and SST will occur within 30 days of the energy audit submission to the program. Any findings from the energy audit site verification that would result in a reduction in the maximum size of the PV system will be reported to the Host Customer within 60 days from audit report submission.

Repeated non-compliance findings from an individual contractor or firm across multiple projects will result in the contractor or firm being placed on a provisionary mentoring/correction process for all submitted projects, which may include additional quality assurance audits, until the issue has been corrected. For instances of deliberate/repeated misrepresentation of existing conditions of the housing property, consequences can include infractions or disqualification from program participation as further delineated in Section 4.9, PA Recourse for Program Requirement Non-Compliance.

Pathway 2: Recent or active participation in an approved whole-building energy upgrade program, documentation of a recent California Tax Credit Allocation Committee (TCAC) rehabilitation, or documentation that the property was completely constructed under a recent version of Title 24.

Participants who choose this pathway must evidence any of the following:

1. Documented enrollment ¹³ , including evidence of active or completed energy upgrades ¹⁴ , in either a utility, a regional energy network (REN), community choice aggregation (CCA), or state/federally provided whole-building multifamily energy efficiency program within the past five years from the initial SOMAH application submittal date. A list of all currently approved programs will be maintained on CalSOMAH.org and the SOMAH PA can refer the property owner to potential applicable program(s) upon request.
2. Documentation of a California Tax Credit Allocation Committee (TCAC) building rehabilitation that meets or exceeds the Minimum Construction Standard requirements and that was completed within the past five years from the initial SOMAH application submittal date.
3. Documentation that the property was completely constructed under 2013 Title 24, which went into effect July 1, 2014, or a more recent code version.

2.4.2 Energy Saving Assistance (ESA) Program Referral Requirements

Referral to the Energy Savings Assistance (ESA) program is a SOMAH Program requirement. The Applicant will be required to submit a list of all tenant addresses within the property as part of the Reservation Request Package. The address must list the street address and unit number for each tenant at the project site (e.g. 1415 Monterey Road Apt. #1). The SOMAH PA will provide the list to the utility ESA program staff on a regularly scheduled interval for follow up regarding ESA program enrollment. While referral to the ESA program is a requirement, participation in ESA is not a requirement for moving forward with SOMAH participation.

The SOMAH PA will also share IOU-provided outreach materials to participating property owners/operators regarding the ESA program. The property owners/operators will be required to either post the ESA program outreach materials on-site or distribute them directly to the tenants. To receive a copy of the ESA program outreach materials to post on site, the property owner/operator can go to CalSOMAH.org or contact the SOMAH PA.

The distribution of these ESA program materials may be coordinated with the distribution of other SOMAH-approved and required tenant energy education materials, as described in Section 2.5, Tenant Education Requirements.

3.1.1 EPBB Calculator Modifications

The CPUC and the SOMAH PA reserve the right to modify the calculator at any time without advance notice to applicants.

However, if the calculator is revised between the time the Applicant submits a Reservation Request and an Incentive Claim Form, and the revision alters the project's incentive amount, the PA will notify the Host Customer by letter and/or email.

If the Host Customer received a Reservation Approval notice before such a calculator revision, they can either:

1. Re-submit the application using the revised calculator (If the Host Customer chooses to resubmit, they will not lose their place in the queue or application deposit); or
2. Notify the PA that they wish to remain at the incentive level calculated in the existing application using the original calculator (even if the incentive would be reduced under the new calculator).

In either case, the Host Customer must notify the SOMAH PA of their intent, in writing, within 30 days of the date of the PA's notification. If the Host Customer does not notify the PA of their intent within 30 days of the date of the PA's notification, the application will remain in the queue at the level projected under the calculator used in the initial application process.

If the Host Customer has not received a Reservation Approval Notice before such a calculator revision, the SOMAH PA shall notify the Host Customer of the calculator change and how it impacts the incentive amount when the Reservation Approval Notice is issued. The Host Customer must either:

1. Return the notification to the SOMAH PA indicating they accept the recalculated incentive amount using the new calculator;
2. Return the notification to the SOMAH PA indicating they do not accept the new incentive amount and wish to resubmit the application (If the Host Customer chooses to resubmit, they will not lose their place in the queue or forfeit their application deposit); or
3. Return the notification to the SOMAH PA indicating they wish to withdraw the application.

To exercise any option above, the Host Customer must notify the SOMAH PA of their intent, in writing, within 30 days of the date of the PA's notification. If the Host Customer does not return the notification noting acceptance of the recalculated incentive, resubmit the application, or withdraw the application within 30 days of the date of the PA's notification, then the PA will cancel the application, and the Host Customer will lose both their application deposit and place in the queue.

3.3.1 Total Eligible Project Costs

The Applicant must submit project cost details to report total eligible project costs and ensure that total incentives do not exceed total project costs. See Section 3, SOMAH Incentive Structure, for information on incentives.

Total eligible project costs cover the solar energy system and its ancillary equipment. Additional equipment and other costs outside of the project scope are considered ineligible project costs (see below). For large, multifaceted projects where the solar energy system costs are embedded into other project costs, applications must include an estimate of the total eligible costs for the solar energy system.

The following costs may be included in total eligible project cost:

• Solar equipment capital costs, including tracking systems and other ancillary equipment associated with the solar energy system
• Engineering and design costs for the solar energy system
• Construction and installation costs. For projects in which the generation equipment is part of a larger project, only the construction and installation costs directly associated with the installation of the energy generating equipment are eligible
• Engineering feasibility study costs
• All interconnection costs (if applicable) including:
  • Electric grid interconnection application deposits
  • Metering costs associated with interconnection
• Building permitting costs
• Warranty and/or maintenance contract costs associated with eligible project cost equipment (including any prepaid or extended warranties)
• Sales and use tax
• Performance Monitoring and Reporting Service (PMRS) equipment and/or services
• Customers may claim certain mounting surface costs as eligible project costs. Costs may include mounting surfaces for the PV modules and/or the materials that provide the primary support for the PV modules. Only the percentage of mounting surface directly under the PV modules is eligible.
• Construction management and project development costs incurred by the Host Customer if separate from the solar vendor, contractor, subcontractor, or seller (the entity that sells the system), and clearly documented via contracts, invoices, or equivalent.
• Cost of capital included in the system price by the vendor, contractor, subcontractor, or seller (the entity that sells the system) is eligible if paid by the System Owner. This includes, but is not limited to, financing costs associated with loans or lines of credit.

In cases in which an installation contract encompasses all costs associated with the installation of a solar energy system and additional measures such as energy efficiency, other renewable generating technologies, etc., the contractor must delineate the costs for the solar energy system separately in the agreement.

3.3.2 Reportable Project Costs

All systems receiving a SOMAH incentive are required to enter the costs identified below in the SOMAH Program's online database, PowerClerk, in order for the PA to track solar energy system cost data:

• PV modules – the cost for the number of modules installed
• Inverters – the cost for the number of inverters installed
• Carport mounting surface material and installation (when applicable)
• On-site system measurement, PMRS and data acquisition equipment and/or services
• Permitting fees – only include the cost of the permitting fees charged by the permitting agency (do not include any costs associated with time and labor in applying for permits)
• Balance of system (BOS) – all other eligible costs associated with the installation of the PV system. Please see Section 3.3.1, Total Eligible Project Costs, for a description of eligible project costs.
• For Solar Power Purchase Agreements or similar contract type (Solar Service Agreement, etc.), applicants are required to provide the following:
  • $/kWh
  • Escalator, in flat dollars or percentage (if included)
  • Any additional associated costs, including taxes and fees
  • Term (in months)
• For Solar Leases, applicants are required to provide the following:
  • Monthly payment amount
  • Escalator, in dollars or percentage (if included)
  • Any additional associated costs, including taxes and fees
  • Term (in months)

For Host Customer owned projects, the total cost listed in PowerClerk must match the total cost listed in the executed contract for system purchase and installation. If costs change for any reason from previously reported amounts listed in PowerClerk, applicants must update PowerClerk with correct final totals. Cost-related information will only be made public in aggregate to report program-level cost averages and will not be reported publicly on a project-by-project basis.

4.1.1 Pipeline Statuses

The SOMAH Program has two primary application pipeline statuses for each IOU territory: open and closed. An application pipeline may be open with no waitlist, open with a waitlist, closed with a waitlist, or closed for maintenance. The SOMAH Program closes application pipelines when waitlists are excessively long in order to preserve funding for future program years, maintain a positive user experience, and to reduce application withdrawals or dropouts. The SOMAH Program may, on rare occasion, close an application pipeline for necessary platform maintenance or to prepare for upcoming program changes.

4.1.2 Pipeline Status Change Communication

"Open" Pipeline: The SOMAH Program will communicate application pipeline status changes via the CalSOMAH.org email subscription list and the program website. The SOMAH Program will communicate the release of new funding and/or the re-opening of a closed application pipeline at least thirty (30) days prior to releasing new funding or opening a closed application pipeline.

"Closed" Pipeline: The SOMAH Program will communicate the closure of an IOU territory's application pipeline when total incentives requested reach the SOMAH Program's waitlist closure threshold as defined at CalSOMAH.org/waitlist. Excepting unforeseen circumstances, the SOMAH Program will communicate application pipeline closures for necessary platform maintenance or to prepare for upcoming program changes at least fourteen (14) days in advance of closure.

4.1.3 Pipeline Management Process

SOMAH Program will maintain a detailed description of the methodology determining the order in which applications are processed and waitlisted on the program website. The website will also display the current application pipeline status and waitlist order by project number for each IOU territory at CalSOMAH.org/waitlist.

4.1.4 Changes to Pipeline Management Process, Decision Making and Stakeholder Engagement

Changes to application pipeline management will be made at the SOMAH Program Administrator's discretion in consultation with stakeholders. Changes to the method by and/or order in which applications are processed and waitlisted will be made in order to achieve stated program goals and objectives.

4.1.5 Changes to Pipeline Management Process, Communication and Timing

The SOMAH Program will communicate pipeline management changes at least sixty (60) days ahead of implementing changes. Revisions to pipeline management will generally apply to a subsequent funding cycle or the reopening of a closed application pipeline rather than to existing applications, except as prescribed by law or CPUC guidance.

4.2.1 Submit Upfront Technical Assistance Request (Track A projects only)

To request Upfront Technical Assistance from the SOMAH Program, the Host Customer must submit an Upfront Technical Assistance (TA) Request through PowerClerk. The Request will be date and time stamped in PowerClerk to identify the Host Customer's position within the program pipeline. Once the Upfront Technical Assistance Approval notification is issued incentive funds will be earmarked for a period of 180 days from the date of the Upfront TA Approval notification. If a Reservation Request Package has not been submitted within the 180-day period, the funds will be released. See Section 2.2, General Eligibility Guidelines, for eligibility information as it pertains to the regulatory agreement and the certificate of occupancy requirements for receiving Upfront Technical Assistance.

After the Upfront Technical Assistance Request has been submitted and reviewed, the SOMAH PA will request the following documentation to verify property eligibility and eligible system size:

• Documentation of Multifamily Low-Income Housing Eligibility ²⁶
• Letter of Authorization to Receive Customer Information or Act on a Customer's Behalf (this LOA should include all common area addresses and service account numbers)
• List of all common area address, account, and meter numbers; and all tenant addresses*
  • *In addition to the tenant addresses, tenant meter numbers for projects located in the SDG&E territory are currently required and tenant meter numbers may be requested for projects in other utility territories

4.2.2 Submit Reservation Request Package and Application Deposit (Application Deposit is applicable to systems ≥ 10 kW)

Applicants must submit the Reservation Request Package and the Application Deposit (detailed in Section 4.2.2.5, Application Deposit) to either hold the earmarked incentive amount (Track A projects) or reserve a specified incentive amount (Track B projects).

The Reservation Request Package must have signatures of the Applicant, Host Customer and System Owner, and should be submitted with the following documentation:

Phase I

• Documentation of Multifamily Low-Income Housing Eligibility ²⁷
• Document listing all tenant addresses on the property to serve as the Energy Savings Assistance (ESA) program referral list (CSV file)
• VNEM Load Allocation Form
• Letter of Authorization to Receive Customer Information or Act on a Customer's Behalf
• Host Customer Data Disclosure Consent Form

Phase II

• Completed Reservation Request form with signatures. This completed form serves as the SOMAH Program Contract
• Affidavit Ensuring 100% Economic Tenant Benefit ²⁸
• Multiple Bids ²⁹ or Multiple Bid Waiver
• Application Deposit (see Section 4.4.2.5, Application Deposit)

The Reservation Request Package is broken into Phase I/II to reduce initial application administrative burden, provide a quicker timeline tofor data requests, and streamline the overall milestone requirements. Applicants may submit Phase I and Phase II requirements at the same time, with the initial Reservation Request Package submission, should they choose to forgo the phased approach.

Once a Reservation Request Package is determined to be complete and eligible, the SOMAH PA will send a Reservation Approval Notice to the Applicant and Host Customer. The Notice will list, at a minimum, the approved SOMAH incentive amount and the dates by which the Energy Efficiency Compliance Milestone, Proof of Project Milestone, and Incentive Claim Package must be submitted.

4.2.3 Submit Energy Efficiency Compliance Milestone

Within 90 calendar days of Reservation Approval Notice, the Energy Efficiency Compliance Milestone must be submitted to demonstrate to the SOMAH PA that the project is progressing, and the system size and incentive amount reserved are in line with SOMAH Program sizing requirements. The Energy Efficiency Compliance Milestone must be submitted with the following documentation:

• Documentation of an onsite whole-building walkthrough energy audit at ASHRAE Level I or higher within the past five years (Pathway 1), or proof of enrollment in a utility, regional energy network (REN), CCA program or federally provided whole-building multifamily energy efficiency program; documentation of a recent California Tax Credit Allocation Committee (TCAC) rehabilitation; or documentation that the property was completely constructed under a recent version of Title 24 (Pathway 2)
• Solar Sizing Tool

Once an Energy Efficiency Compliance Milestone is determined to be complete, the SOMAH PA will send the Energy Efficiency Compliance Approval Notice to the Applicant, Host Customer, and System Owner. The Notice will list, at a minimum, updates to the SOMAH incentive amount based on the Solar Sizing Tool (SST), if applicable.

The project’s eligible incentive amount may be amended by the SOMAH PA after review of the Energy Efficiency Compliance Milestone. Applicants have the option to submit the Proof of Project Milestone with the Energy Efficiency Compliance Milestone should they prefer to submit the Proof of Project Milestone requirements at an earlier stage. This option to submit the Proof of Project Milestone earlier will have no impacts to the overall program requirements, application workflow, or 18-month reservation period. If the Proof of Project Milestone is submitted with the earlier Energy Efficiency Compliance Milestone, the Proof of Project Milestone approval will be granted with the Energy Efficiency Compliance Milestone approval and only the Incentive Claim Package will remain for application requirements.

No extensions to the Energy Efficiency Compliance Milestone due date are permitted.

4.2.4 Submit Proof of Project Milestone

Within 240 calendar days of the date on the Reservation Approval Notice, the Proof of Project Milestone must be submitted with the following documentation:

• Copy of executed contract for system purchase and installation (for Host Customer Owned systems only)
• Copy of alternative system ownership agreement (if System Owner is different than Host Customer)
• Certification of Compliance with SOMAH Performance Requirements for Third-Party Owned Systems (for third-party owned systems only)
• (Optional) Progress Payment Request Form
• (Optional) Tenant Education Affidavit

Once a Proof of Project Milestone is determined to be complete, the SOMAH PA will send the Proof of Project Milestone Approval Notice to the Applicant, Host Customer, and System Owner. The Notice will list the specific reserved incentive amount and the Reservation expiration date.

Applicants have the option to submit the Proof of Project Milestone with the Energy Efficiency Compliance Milestone should they prefer to submit the Proof of Project Milestone requirements at an earlier stage. This option to submit the Proof of Project Milestone earlier will have no impacts to the overall program requirements, application workflow, or 18-month reservation period. If the Proof of Project Milestone is submitted with the earlier Energy Efficiency Compliance Milestone, the Proof of Project Milestone approval will be granted with the Energy Efficiency Compliance Milestone approval and only the Incentive Claim Package will remain for application requirements.

No extensions to the Proof of Project Milestone due date are permitted.

4.2.5 (Optional) Submit Progress Payment Request Package

The Applicant should submit the Progress Payment Request Package with the following documentation after the PV system is purchased and installed.

• Progress Payment Request Form, unless already submitted with Proof of Project Milestone
• Tenant Education Affidavit, unless already submitted with Proof of Project Milestone

4.2.6 Submit Incentive Claim Package

The Applicant should submit the Incentive Claim Package and the following documentation after the PV system is purchased, installed, and interconnected.

• Incentive Claim Form with signatures
• Job Training Affidavit
• Documentation of the final VNEM Load Allocation (Form filed with the Utility Interconnection Application)
• Tenant Education Affidavit, unless already submitted with Progress Payment Request Package
• Documentation of Load Increase (if applicable)

Although the Applicant is not required to submit Proof of Authorization to Interconnect, the SOMAH PA will verify interconnection prior to issuing the final incentive payment.

4.2.7 Incomplete Application Submissions

If an application step is found to be incomplete or requires further clarification, the SOMAH PA will request additional information. Applicants have 20 calendar days to respond to the incomplete notice with the necessary information. If after 20 calendar days the Applicant has not submitted the requested information, the application will be cancelled.

If an Incentive Claim Form package is not received by the reservation expiration date, or the Incentive Claim Form package indicates that the Project is otherwise ineligible, the SOMAH PA will send a written notice stating the reasons why the Project is ineligible, and the Project will be cancelled. If this is the case, the Applicant or Host Customer may reapply for a SOMAH incentive reservation but will be subject to the eligibility requirements, incentive levels and funding available at the time of reapplication.

4.4.1 Technical Assistance Request (Track A Projects Only)

4.4.1.1 Technical Assistance Request

To request Upfront TA from the SOMAH Program, the Host Customer must submit an Upfront Technical Assistance Request through Powerclerk. The submission will include Host Customer contact information and general Project Site information. Once the request has been reviewed, the Host Customer will be asked to submit the following documentation: