Low-Income Energy Efficiency Programs

Disinvested communities deserve affordable energy.

Energy efficiency investments are a promising strategy for reducing household energy use and energy burdens while lowering carbon emissions, improving health and comfort, and creating workforce opportunities.

Low-income households have historically had limited access to energy efficiency services. As a result of historic disinvestment, many of these households live in older, poorly insulated housing with inefficient appliances and structural issues that lead to energy waste. Low-income households often cannot afford the costs of upgrades and therefore have less control over the quality of their homes, leading them to spend a disproportionate amount of their income on energy bills. Strains on household budgets often force many families to make difficult tradeoffs between keeping the lights on, food, and other necessities.

Utilities, local governments, policymakers, and other program administrators can advance energy efficiency investments to ensure that low-income households benefit from the energy transition and see lower energy bills. These energy efficiency programs provide a range of services, including building envelope improvements (e.g., insulation and weatherization), heating and cooling equipment, and appliance replacements to help reduce home energy use. Funding and financing available through these programs include rebates, grants, or bill financing.

ACEEE supports expanding and sustaining funding for low-income energy efficiency programs while advancing policies and program designs that more adequately, equitably, and comprehensively serve low-income households and reduce energy burdens. We conduct research on innovative strategies to reduce both energy burdens and evaluate the effectiveness of programs, policies, and delivery models; track state and local progress on low-income energy efficiency funding and implementation; and identify best practices that improve access and affordability. We also help design and scale more equitable approaches through technical assistance and working groups. Through this combination of research, technical assistance, and engagement, ACEEE works to ensure low-income households can benefit from healthier homes and lower energy bills.