Based on an analysis of Department of Energy data by ACEEE, low-income households spend 3 times as much as the average family on energy, with their energy burden exceeding the benchmark set by the DOE at 6%. The figures are unsettling. One-quarter of all American families are struggling with high energy costs, and 1/3 of households have severe energy costs exceeding 10% of their income. Because of this, the cost of electricity directly affects these family’s ability to pay for housing, food, medical care, and other essentials.
However, all utilities are witnessing an increase in households with unpaid bills. Also, industry conversations suggest that the energy burden is probably driving a wave that leads to unhealthy living conditions, such as residents heating their homes with open ovens in the winter and failing to cool their homes during heat waves.
Low-Income Solar Programs in the United States
A low-income homeowner may not be able to afford the hefty upfront installation costs of a residential solar system, even though it is a great way to reduce these energy crises. Fortunately, some states are offering solar incentive programs and rebates to low-income residents, enabling them to switch to solar power at a reduced cost. They provide grants, rebates, and state tax credits for the installation of solar panels and backup power systems to lower the cost of solar energy. The top low-income solar programs include:
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- Colorado Rooftop Low Income Program
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- Colorado Xcel Energy Solar Rewards Program
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- Washington, D.C. Solar For All Program
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- New York Solar for All Program
ACEEE report highlighted that energy equity programs are more important than ever for utilities in the sector to lessen the financial burden on these families, and help them in having safer, healthier homes and more access to greener energy sources.