SUCCESS STORY
Roadblock Removed for
Northern California Solar Projects

Solar on Multifamily Affordable Housing

PROPERTY INFO
Mt. Senior Center & Burney Villa
LOCATION
Burney, Shasta County
UNITS
80
RESIDENT PROFILE
Senior & Family
PAID JOB TRAINEES
4
INCENTIVES
$902,705 (Combined)
SYSTEM INSTALLED
Mt. Senior Center
141.75 kW DC
Tenant: 80.8%; Common: 19.2%
Burney Villa
336.96 kW DC
Tenant: 80.8%; Common: 19.2%
IOU TERRITORY
Pacific Gas & Electric
ENVIRONMENTAL IMPACT
Reduces 133 tons of CO2 emissions per year
Reduces 2,660 tons of CO2 emissions over 20 years

Background
Multifamily affordable housing owners and solar developers have long struggled to access SOMAH Program  incentives for projects  in Northern California. That changed in  November  2024  when the California Public Utilities Commission (CPUC) suspended
a key program requirement, creating a pathway for broader participation.

How SOMAH projects are financed
Most SOMAH installations are developed and financed by solar developers or contractors through power purchase agreements (PPAs):
Property owners pay no upfront or ongoing costs and lock in stable, often lower, electricity rates.
Developers earn revenue from long-term energy sales and leverage SOMAH incentives with federal tax credits and other clean energy incentives to improve project economics.
Tenants receive utility bill savings through on-bill credits and gain access to clean energy — a step toward environmental equity.
To boost project viability, SOMAH offers an upfront incentive known as the Expected Performance-Based Buydown (EPBB). It calculates incentive amounts based on system design, location, expected energy production and other factors, generating a design factor that determines the final award.

The Solar on Multifamily Affordable Housing (SOMAH) Program provides financial incentives for installing photovoltaic solar energy systems and delivers clean power and energy bill credits to residents.
To find out how to bring solar to your community, visit CalSOMAH.org
858-244-1177 ext. 5  |  contact@CalSOMAH.org

SOMAH-062025

Why EPBB was suspended
In practice, EPBB created stark regional disparities. For instance, a system in Los Angeles might qualify for 99% design factor providing almost the maximum incentive, while a comparable system in Eureka would get only 77% — due  mainly to EPBB geographic adjustment factors based on a reference site in Southern California.
With Northern systems typically unable to pencil out financially or meet tenant savings thresholds, participation largely stalled.
Recognizing this inequity, the CPUC suspended EPBB in November 2024 for:
Liberty Utilities
PacifiCorp
Areas north of 39°N latitude in PG&E territory
These regions may now apply a 100% design factor, increasing incentive amounts and making solar more financially viable.
The decision aligns with SOMAH's overarching goal to deliver renewable energy benefits to low-income property owners and tenants throughout the state, ensuring that all communities, regardless of location, have equitable access to solar energy benefits.

Empowering tribal communities
In Mendocino County, the Round Valley Indian Housing Authority and GRID Alternatives collaborated on a  55.82 kW system for 90 households. The EPBB
suspension boosted their incentive 28%, from $127,150 to $162,390 — finally allowing the project to move forward  after  nearly four years stalled.
This milestone underscores the power of program adjustments to support equitable solar access for Tribal communities and honor their leadership in sustainable development.

Projects re-entering the SOMAH pipeline
Developers are once again planning projects in small towns and tribal communities previously left out. For some property owners, the new incentive formula means the difference between installing a system and walking away.
To date, 13 projects have benefitted from the EPBB change, receiving over $900,000 in increased incentives and impacting 520 households.
Among them are two projects in Burney, Shasta County, led by The Michaels Organization and Sunrun
that saw substantial incentive increases:
Mt. Senior Center: $161,400 → $269,475 (+67%)
Burney Villa: $183,640 → $633,230 (+245%)
Together, they bring solar to more than 80 units in
a rural town where solar was previously out of reach.

Conclusion
As the SOMAH Program  continues advancing energy equity across California, its ability to  adapt and remove  barriers    is key to maximizing its impact. And, when financing is successfully navigated, it creates a win-win-win for developers, property owners and tenants alike.