Energy efficiency can ease the low-income burden

 

The average US household pays $1,411.80 for electricity each year.¹

That is:

• 2.2% of the median household income in the US.
• 5.5% of the income of a family of four who live at the poverty level
• 11.7% of the income an individual over 65 who lives at the poverty level²

This is also known as a household’s energy burden. The average energy burden for low-income households is 8.2%.³

Energy burden increases for those who:

• Live in older, draftier homes
• Have older, less efficient appliances
• Rent instead of own their home

This means inefficiency costs low-income households more.

Average cost of utilities per square foot⁴

• Low-income households: $1.41
• Non-low-income households: $1.17

More than 38 million people in the US live at or below the poverty line, and 30% of Americans live in low-income households.⁵

Efficiency improvements such as insulation, lighting, and appliances can make a big impact.

13% to 31% potential electricity savings from efficiency improvements in low-income households.⁶

This means big savings that last.

Weatherization and efficiency upgrades saved households on average $283 every year.

 

Compare the energy burden for people in your area to other communities, your state, or the country with DOE’s Low-Income Energy Affordability Data Tool www.energy.gov/eere/slsc/maps/lead-tool.

 

Sources:

1. www.eia.gov/electricity/sales_revenue_price/pdf/table5_a.pdf

2. www.census.gov/library/publications/2019/demo/p60-266.html

3. www.energy.gov/eere/articles/3-new-tools-advancing-energy-affordability-low-income-communities

4. www.energyefficiencyforall.org/resources/lifting-the-high-energy-burden-in-americas-largest-cities-how-energy/

5. www.kff.org/other/state-indicator/population-up-to-200-fpl/

6. www.energy.gov/sites/prod/files/2019/01/f59/WIP-Energy-Burden_finalv2.pdf