LOW INCOME SOLUTIONS IN A HIGH DER FUTURE
Summary
This report outlines the risks and needs of low-income (LI) and fixed-income (FI) electricity customers during the transition to a distributed energy resource (DER) and renewable electricity system. It identifies financial and social concerns, maps existing and unmet needs, and examines case studies to determine how these segments can be equitably integrated into a high-DER future.
Key insights
- Low-income and fixed-income (LI/FI) customers are identified as critical segments at risk during the transition to distributed and renewable electricity systems. These groups are geographically diverse, live in both single- and multi-family homes, and may spend as much as 20% of their income on energy.
- Low income does not necessarily correlate with low energy consumption. Data from seven programs indicates that low-income populations have diverse consumption patterns, and in some instances, they consume more energy than higher-income households.
- Consumer advocates highlight several financial and social risks for LI/FI customers in a high-DER future. Financial concerns include rate and technological affordability, the potential for cross subsidies to harm these customers, and 'split incentives' in multi-family housing where owner and occupant interests diverge. Social concerns center on equal representation, the accessibility of rate structures, and the maintenance of health and safety standards.
- Case studies illustrate specific tensions and solutions regarding DER implementation. In the 'Reforming the Energy Vision' (Con Edison) case, advocates raised concerns that decoupling could increase costs without offsetting savings. In the Salt River Project case, concerns included the threat of service disruption and the targeting of prepayment plans at low-income households. The California Solar Initiative addressed these issues by providing $160 million in incentives and a green-jobs training program.
Cite the original document
- APA
- RMI (n.d.). LOW INCOME SOLUTIONS IN A HIGH DER FUTURE. https://rmi.org/app/uploads/2017/05/RMI_Document_Repository_Public-Reprts_2014-32_eLabLowIncomeSolutions_FinalDraft.pdf
- Chicago
- RMI. LOW INCOME SOLUTIONS IN A HIGH DER FUTURE. n.d. https://rmi.org/app/uploads/2017/05/RMI_Document_Repository_Public-Reprts_2014-32_eLabLowIncomeSolutions_FinalDraft.pdf.
- Wikipedia
- {{cite report |author=RMI |title=LOW INCOME SOLUTIONS IN A HIGH DER FUTURE |url=https://rmi.org/app/uploads/2017/05/RMI_Document_Repository_Public-Reprts_2014-32_eLabLowIncomeSolutions_FinalDraft.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{rmindlow, author = {{RMI}}, title = {{LOW INCOME SOLUTIONS IN A HIGH DER FUTURE}}, institution = {RMI}, url = {https://rmi.org/app/uploads/2017/05/RMI_Document_Repository_Public-Reprts_2014-32_eLabLowIncomeSolutions_FinalDraft.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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