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

This research paper by RMI analyzes energy burden—the proportion of household income spent on electricity and fuel—across all 50 US states using 2020 Energy Information Administration data. It finds that extremely low-income households face a disproportionately high energy burden, often exceeding the 10% threshold for energy poverty, and evaluates how federal funding from the Inflation Reduction Act (IRA) and specific state-level policies can mitigate these burdens while pursuing decarbonization.

• Extremely low-income households, defined as those earning less than 30 percent of the state median income, experience a disproportionately high energy burden. Approximately one in seven of these households has an average energy burden of 14 percent, which exceeds the 10% threshold used to identify energy impoverished households. In contrast, non-low-income households have an average energy burden of 3 percent.
• The Inflation Reduction Act (IRA) and the Infrastructure Investment and Jobs Act are projected to save American families roughly $38 billion on electricity bills. The IRA provides several targeted funding streams for low- and moderate-income households, including Home Electrification and Appliance Rebates for point-of-sale upgrades, the Home Efficiency Rebate Program for whole-home retrofits, and a $27 billion Greenhouse Gas Reduction Fund. The latter includes $7 billion for 'Solar-for-All' and could potentially serve over 1 million low-income Americans.
• State-level policy interventions have shown success in reducing energy poverty. Examples include California's percentage of income payment plans (PIPPs), which can cap electricity costs at 4 percent of household income, and New York's 2016 goal to cap household energy burdens at 6 percent. Additionally, Colorado's Low-Income Community Solar Demonstration Project in 2015 resulted in electricity bill savings between 15 and 50 percent for participating households.
• Energy burden varies significantly by region, with the highest burdens found in southern states, where extremely low-income households spend nearly eight times as much of their earnings on energy as those at or above the median income. Conversely, extremely low-income households in western states have the lowest energy burden among their income group, though they still spend nearly six times more than households at or above the state median income.
• Analysis indicates that states can simultaneously pursue decarbonization and energy affordability. Most states making the most progress toward emissions reductions consistent with the US Nationally Determined Contribution (NDC) to the Paris Agreement also have energy burdens for extremely low-income households that are lower than the 14 percent national average, with New York being a notable exception due to high energy rates in New York City and a high Gini coefficient.

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} }