Solar For Multi-Family Housing

If you run an apartment complex or own several rental properties, adding commercial solar panels can help you minimize the energy expenditures for yourself and your tenants. You may even attract more tenants to your building, as you will now be able to advertise as a green property!

High ROIs (returns on investment) and an increase in property value are achievable through 100% renewable solar power for your multi-family property in southern California. TENCO SOLAR makes the installation, maintenance, solar panel battery storage, and commercial financing processes hassle-free for multi-family property management companies.

Solar energy systems are an investment in the future of clean energy, and multi-family properties are at the forefront of modeling solar energy as a simple power solution. That's why we offer financing options specific to multi-family projects that will help you accelerate your payback and start seeing the benefits of solar energy quickly.

An aerial view of a multi-family apartment complex. The roof is completely covered in solar panels. Installed by Tenco Solar

Multi-Family Developers We've Worked With:

Advantages Of Solar Energy For Mutli-family Builders

California builders that switch to energy generated by solar panels will enjoy four key benefits that make the investment worth it:

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Comply with Title 24

Ensure your solar installations meet California's Title 24 energy efficiency standards.

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Beat Rising Costs

Electricity is consistently becoming more expensive and a bigger burden for tenants. Going solar means competitive rates for tenants and predictable costs for property owners.

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Improve Optics

Attract eco-conscious tenants and advertise your building as a green property while taking advantage of solar-specific tax programs.

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Ample Incentives

Attract eco-conscious tenants and advertise your building as a green property while taking advantage of solar-specific tax programs.

A solar worker bends down under a solar panel while working on a commercial solar job.

Multi-Family Housing Financing

Our team of commercial solar experts can help you explore which multi-family housing financing option is right for your project, so that you can take advantage of all of the benefits of solar panels as soon as possible.

Many of our multi-family property owners have benefited from the FANNIE-MAE DUS financing described here.

A sunny Photo of a chevy pickup truck with the TENCO SOLAR logo on the side.  Two workers climb onto a roof
Why Us


For solar energy services that can guide you through installation, financing, and routine maintenance, choose TENCO SOLAR. Our solar panel experts know the right questions to ask and have the tools to lead you to the tax incentives and accelerated depreciation options that will yield the best results for your multi-family property.

Incentive Programs Available

At TENCO SOLAR, we understand that transitioning to solar energy involves an investment. We can help you find the best program or financing option for your project.

Which Industries Qualify?
Available to multi-family property management ONLY
Finance Details
Long-term refinancing. Reduce total property financing costs by 20-40 basis points ($1-2K for every $1M owed).
Full refinancing must be done prior to the start of the project.
To Note
Best for property managers who pay taxes and can utilize tax credit and accelerated depreciation.
Investment Tax Credit - Low Income Adder

Please see our page on Commercial Tax Benefits for more information on the 30% Investment Tax Credit (ITC).

In addition to the 30% ITC, a project can qualify for additional or bonus tax credits, including the Low Income Adder.

Note: We are still awaiting final guidance from the US Department of Treasury on the requirements for the Adder described below.

To qualify for this adder, projects must be:

  • Be placed in a low-income area (per the census track)
  • Be under 5 megawatts
  • Be classified as a “qualified low-income residential building project” or “qualified low-income economic benefit project.”
  • Allocate the financial benefits of the solar project equitably between the residents.

If these qualifications are met, projects may receive a 20 percentage point increase in value of the ITC (30% -> 50%).

California's Solar on Multifamily Affordable Housing (SOMAH) Program

Affordable housing properties in California can qualify for state-funded solar panel incentives through the Solar on Multifamily Affordable Housing (SOMAH) Program.

The SOMAH Program was designed to provide financial incentives for installing solar panel systems that benefit both property owners and low-income tenants by delivering credits on energy bills to residents that otherwise would not have access to solar energy for their homes.

Property Eligibility Requirements

SOMAH eligibility requires that a property must:

  1. Have at least five units.
  2. Be deed-restricted low-income residential housing.
  3. Satisfy one of the following:
    1. 80% of the property residents have incomes at, or below, 60% of the area median income (AMI). OR
    2. Property is in a defined disadvantaged community (DAC) that scores in the top 25% of census tracts statewide in the CalEnviroScreen.
  4. Be an existing building or retrofit.
  5. Have separately metered units.
  6. Be a utility or community choice aggregator (CCA) customer (with VNEM) in one of the following territories:
    1. Pacific Gas and Electric (PG&E)
    2. Southern California Edison (SCE)
    3. San Diego Gas & Electric (SDG&E)
    4. PacifiCorp
    5. Liberty Utilities

Virtual Net Energy Metering (VNEM)

VNEM is a tariff arrangement that enables a multi-meter property owner to allocate the property's solar system's energy credits to tenants. Instead of flowing to the tenants' meters, the generated electricity feeds directly back onto the grid and the participating utility then allocates the kilowatt-hours received to both the building owner's and tenants' individual utility accounts, based on a pre-determined allocation agreement. VNEM tariffs were first piloted under the Multi-family Affordable Solar Housing Program (MASH) as a means of providing direct benefits of the solar system to low-income tenants in an affordable housing complex.

Unlike other multi-family housing projects, all VNEM projects will continue to be compensated according to Net Billing 2.0. Customers with a signed contract and a completed Net Billing application before April 14, 2023, will be locked into the Net Billing 2.0 rates for 20 years. Customers that complete their application after April 14 will be guaranteed Net Billing 2.0 rates for 9 years.

TENCO SOLAR does not provide tax or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax or accounting advice. You should consult your own tax, legal and accounting advisors regarding your specific circumstances.
Contact Us

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Contact TENCO SOLAR for more information about the steps and processes we follow to ensure that each commercial solar project we install exceeds your highest expectations.

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700 N Valley St, Suite C, Anaheim, CA 92801