As we discussed in our January newsletter, solar energy is reaching a critical mass of affordability and availability within the United States. Before solar, other energy-efficient technologies like the LED lightbulb were in a similar situation: A new technology that can revolutionize energy efficiency and save money stifled by market inertia and too-big-to-fail investments in incumbent technology. LEDs are 90% more effective and last 25 times longer than traditional incandescent bulbs, yet we would not have them screwed into every light socket today without utility programs pushing their widespread adoption and driving down costs. Like the LED lightbulb, solar energy adoption is getting a little help from federal, state, and utility programs. In California, the Solar on Multifamily Affordable Housing (SOMAH) program is giving solar energy that little push it needs.
SOMAH helps multifamily affordable housing (MFAH) properties install solar systems at little to no cost. Depending on the qualifications met, a property can receive between $5,000 to $50,000 and a free solar system at no cost, provided the majority of the solar energy goes to residents. Currently, the service areas of the following utilities are eligible for SOMAH: PG&E, SCE, SDG&E, Liberty Utilities, and Pacific Power.
ICAST, dedicated to providing energy efficiency and renewable energy services to MFAH, is working through the SOMAH program to bring solar energy to its customers. Our five most recent projects are:
- 41 direct current kilowatts (kW DC) benefitting 50 low-income units
- 8 kW DC benefitting 50 low-income units
- 01 kW DC benefitting 50 low-income units
- 03 kW DC benefitting 59 low-income units
- 8 kW DC benefitting 60 low-income units
- 67 kW DC benefitting 12 low-income units
These five projects have brought 887.72 kW DC electricity to 281 low-income units with minimal to no owner cost-share investment. These projects save residents, on average, $250-468 on utility bills a year (not accounting for any other measures installed as part of the same project). As tenants become increasingly eco-conscious, solar energy retrofits like those offered by ICAST and SOMAH can help attract and retain tenants, particularly in low-income housing where lowered utility costs help tenants stretch their income further for other necessities.
Like many programs, SOMAH’s incentives are paid out after the project is completed, placing property owners in a bind where the incentives can cover the project. Yet, they may not have the upfront capital to get the project started. ICAST’s affiliated 501c3 nonprofit partner, Triple Bottom Line Foundation (TBL Fund), specializes in providing financial products to cover this gap financing. These loans are low-risk and low-interest, as the guaranteed project incentives secure them. Together, ICAST and TBL Fund can provide a hassle-free turnkey service with SOMAH, allowing your properties to reap the benefits while we handle the rest.
If you’d like to explore whether your property qualifies for SOMAH, you can schedule a free brief consultation with ICAST’s National Solar Solutions Manager, Walter Cupa, by going here.