CLIMATE 101: WHAT IS ENERGY BURDEN?

Like with so many other things, outsized energy burden is an equity issue that disproportionately impacts
already marginalized communities.

It’s that time of year again. In the northern hemisphere, winter is well underway and with
it utility costs are on the rise. Families must heat their homes to avoid the cold. But for
some, turning up the thermostat can be a painful thing – they simply don’t have themoney to afford the seasonal rise in energy usage and cost.
They are suffering under the weight of something called “energy burden.”According to the US Department of Energy, energy burden “is defined as thepercentage of gross household income spent on energy costs.” Nationally, lowerincome households spend a larger portion of their income on home energy costs –things like electricity, natural gas, and other home heating fuels. The DOE reports that“the national average energy burden for low-income households is 8.6%, three times
higher than for non-low-income households which is estimated at 3%.” Of all UShouseholds, 44 percent – or about 50 million – are defined as low income. And like withso many other things, outsized energy burden is an equity issue that
disproportionately impacts minority communities.
African-American households in the US, for example, experience a median energy
burden 43% greater than white households (4.2% versus 2.9%, respectively), andLatino households have a median burden 20% greater than white households (3.5%
and 2.9%, respectively). High energy burdens can sometimes lead some families evensuffer from “energy poverty.” Energy poverty is when a person or family doesn’t haveaccess to reliable and affordable energy sources. Being energy poor can mean going
without heat or AC, lighting, warm water, appliances, or transportation access for any
period of time.
1Higher energy burdens have real implications on the health and well-being of families
and individuals. Families who have to devote higher proportions of their income to utility
bills may have to make trade-offs between heating and cooling their homes or affording
other necessities, such as food, medicine, and childcare.

HOW DO WE FIX THIS?
Improved energy efficiency is a practical solution that can also help reduce energy
burden for many families. Unfortunately, low-income housing is often far less energy
efficient than average construction.
Energy efficiency can take many forms, from replacing incandescent bulbs with LEDs to
installing effective home insulation and windows designed to prevent heated or cooled
air from escaping from a home. Efficiency measures like these and others can be
relatively low-cost ways to reduce household energy costs regardless of climate,heating fuel, or energy price factors in a state. Energy efficiency and clean technologies,
particularly solar energy, can not only lower energy bills for low-income households, but
are also proven to improve indoor air quality, safety, and comfort, bettering healthoutcomes. Communities and utility providers need to work together to remove thefinancial barriers to clean energy and energy efficiency programs that many low-income
families face.
Energy audits are professional assessments of a household to determine how muchenergy is used, what systems could be upgraded to improve energy efficiency, and how
to prioritize upgrades to maximize energy savings. The Inflation Reduction Actincludes a $150 credit from home energy audits, as well as credits to install energy
efficient insulation, windows, doors, and electric heat pumps. Energy burden can be acomplicated issue to tackle, but this much is clear: through improved use of clean
energy and increased investment in energy efficiency, families everywhere can reduce
their energy bills and take action to fight the climate crisis.

Learn more at https://www.climaterealityproject.org/
Last updated 20232