Allegations of Massive Fraud in California’s Grid Solar Program and the Gas Taxes That Fund It

California’s SOMAH solar program, managed by GRID Alternatives, faces allegations of $928M in public funds diverted from solar projects to political activism. Only 269 solar installations completed out of nearly $1B budget over a 10-year period (based on their own reporting). Investigations highlight oversight failures and political controversy.

A Program Sold as Clean Energy Relief Now Faces Accusations of Political Diversion

California’s Solar on Multifamily Affordable Housing (SOMAH) program—administered in part by GRID Alternatives, a major nonprofit solar installer—was originally promoted as a billion‑dollar effort to cut electricity bills for low‑income renters. But new investigative reports allege that hundreds of millions of dollars in taxpayer‑funded solar money, much of it sourced from gas taxes, utility bills, and greenhouse‑gas allowance revenues, never reached the communities it was intended to serve. Instead, investigators claim the funds were diverted into political organizing and voter‑mobilization operations. ^{1 2}

The allegations, if substantiated, would represent one of the largest misappropriations of climate‑program funding in state history.

GRID staff installing solar panels. Only 72 million of the 1 billion allocated to the program over a decade were used for installations based on their own reporting.

How the Funding Stream Works

The SOMAH program was created by Assembly Bill 693 in 2015. According to legislative analysis, the program was designed to use:

• Gas taxes

• Utility ratepayer funds

• Cap‑and‑trade greenhouse gas auction proceeds

to subsidize solar installations on affordable multifamily housing. The California Public Utilities Commission (CPUC) was tasked with oversight. ²

The program has reportedly received roughly $1 billion in public funding since inception.

The Core Allegation: $928 Million Missing or Misused

According to a 2026 investigation by CAL DOGE, only $72 million of the program’s funds have resulted in actual solar installations—just 269 completed projects over nearly a decade. That leaves an estimated $928 million unaccounted for, based on SOMAH’s own reporting. ²

Investigators allege that instead of funding solar panels, a significant portion of the money was funneled into:

• Voter registration drives

• Political activism training

• Progressive community‑mobilization efforts

These activities were allegedly conducted by organizations closely tied to the same nonprofit entities involved in administering the solar program.

One report describes the program as “funding a voter mobilization machine” rather than delivering clean‑energy savings to low‑income Californians. ¹

GRID Alternatives’ Role

GRID Alternatives, a non-profit solar installer and outreach coordinator, is a central administrator in the SOMAH program. While the organization publicly focuses on renewable‑energy access and workforce training, CAL DOGE’s reporting alleges that GRID’s community‑outreach arm has a sister political organization that endorses candidates and mobilizes voters in the same neighborhoods where SOMAH projects are promoted. ¹

The investigation suggests that the blurred line between outreach and political activity may have enabled public funds to indirectly support partisan efforts.

GRID Alternatives has not, in the retrieved sources, issued a detailed public rebuttal to these specific allegations.

Gas Taxes: The Hidden Engine Behind the Program

Although the SOMAH program is often described as a climate‑equity initiative, its funding structure relies heavily on gas taxes and utility surcharges—costs borne directly by California drivers and ratepayers. ²

This connection has intensified public frustration, especially as California maintains some of the highest gas prices in the nation. Critics argue that taxpayers believed they were funding clean‑energy infrastructure, not political operations.

Oversight Questions for the CPUC

The California Public Utilities Commission was allocated $558,000 annually to oversee the program and evaluate its success. Yet investigators say the CPUC failed to detect or prevent the alleged diversion of nearly a billion dollars. ²

California Public Utilities Commission was allocated over 1/2 million dollars annually to oversee the program.

The CPUC has not publicly addressed the discrepancy between the program’s funding and its limited number of completed solar installations.

Political Fallout

The allegations have become a flashpoint in California politics. Critics of Governor Gavin Newsom argue that the administration’s regulatory agencies allowed the program to operate with minimal accountability. Supporters of the program counter that the investigations are politically motivated and that the data has been misinterpreted.

Still, the scale of the alleged discrepancy—$928 million—has drawn national attention. ¹

What Happens Next

If state or federal auditors pursue the claims, California could face:

• Criminal investigations into misuse of public funds

• Legislative hearings on climate‑program oversight

• Reforms to how gas‑tax and cap‑and‑trade revenues are allocated

• Scrutiny of nonprofit political activity tied to state‑funded programs

For now, the allegations remain under public debate, but the numbers alone have raised serious questions about transparency, oversight, and the true destination of California’s climate‑program dollars.

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References (3)

¹ Uncovering fraud, waste, and abuse in California — Cal DOGE. https://caldoge.ai/

² CAL DOGE Investigation: $1 BILLION California Solar Program Instead .... https://californiaglobe.com/fl/cal-doge-investigation-1-billion-california-solar-program-instead-funded-democrat-voter-registration-activism-efforts/

³ $900M taken from solar panel program and pumped into Dem voting .... https://www.msn.com/en-us/money/other/900m-taken-from-solar-panel-program-and-pumped-into-dem-voting-activism-cal-doge-claims/ar-AA1XayoP