1 in 7 families live in energy poverty; states can ease that burden

An analysis of 2020 Residential Energy Consumption Survey data reveals that extremely low-income US households—those earning less than 30% of the state median income—face a disproportionately high average energy burden of 14%, exceeding the 10% threshold for energy poverty. The report highlights that the Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act could save American families approximately $38 billion on electricity bills through technology upgrades and rebates. It identifies successful state-level interventions, such as California's percentage of income payment plans (PIPPs) and Colorado's low-income community solar programs, as models for alleviating energy poverty. The analysis further notes that extremely low-income households in southern states experience the highest energy burdens, often correlating with higher income inequality and diversity indices. The document concludes that states can simultaneously pursue decarbonization and energy affordability, citing Colorado and Washington as examples of states integrating specific energy affordability policies into their climate targets.

• Extremely low-income households in the US, defined as those earning less than 30 percent of the state median income, experience an average energy burden of 14 percent, which is above the 10% threshold for being considered energy impoverished.
• The Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act are projected to save US families about $38 billion on electricity bills by reducing the cost of technology upgrades like air conditioning and electric heat pumps.
• The Greenhouse Gas Reduction Fund, a $27 billion initiative, has the potential to mobilize over $250 billion over a decade to decarbonize small businesses and homes, including a $7 billion allocation for the Solar-for-All program.
• Regional disparities in energy burden are significant: extremely low-income households in southern states have the highest burdens, spending nearly eight times more of their earnings on energy than households at or above the state median income, while those in western states have the lowest burdens among the extremely low-income group.
• Specific state policies have proven effective in reducing energy costs: California's PIPP pilot program caps energy payments at 4 percent of household income for those below the federal poverty line, and Colorado's Low-Income Community Solar Demonstration Project saved households between 15 and 50 percent on electricity bills.

APA

RMI (2023). 1 in 7 families live in energy poverty; states can ease that burden. https://rmi.org/resources/1-in-7-families-live-in-energy-poverty-states-can-ease-that-burden/

Chicago

RMI. 1 in 7 families live in energy poverty; states can ease that burden. 2023. https://rmi.org/resources/1-in-7-families-live-in-energy-poverty-states-can-ease-that-burden/.

Wikipedia

{{cite report |author=RMI |title=1 in 7 families live in energy poverty; states can ease that burden |date=18 December 2023 |url=https://rmi.org/resources/1-in-7-families-live-in-energy-poverty-states-can-ease-that-burden/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2023families, author = {{RMI}}, title = {{1 in 7 families live in energy poverty; states can ease that burden}}, institution = {RMI}, year = {2023}, month = dec, url = {https://rmi.org/resources/1-in-7-families-live-in-energy-poverty-states-can-ease-that-burden/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }