Summary

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The report identifies low-income (LI) and fixed-income (FI) customers as critical segments at risk during the transition to distributed energy resources (DER). It maps their specific concerns—including rate affordability, technological barriers, and a lack of trust in environmental groups—against potential conflicts with smart grid and renewable technologies. The document suggests that while some solutions like rebate programs and customer education exist, there are unmet needs in incentive distribution, fair rate structures, and trust-building collaboration.

Key insights

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  • Low-income and fixed-income (LI/FI) customers face significant energy burdens, spending as much as 20% of their income on energy, and are characterized by diverse energy use profiles that may make shifting usage difficult.
  • Low-income households do not consistently have lower energy consumption than higher-income households; data from seven programs indicates that in some utility areas, low-income households actually consume more energy.
  • Consumer advocates identify several critical risks for LI/FI customers in a DER future, including the potential for cross-subsidies that harm these groups, the risk of being excluded from benefits due to high capital costs for equipment, and the misalignment of interests between landlords and tenants in multi-family housing.
  • There is a documented lack of trust between LI/FI consumer advocates and groups supporting distributed energy resources (DER) and environmental goals.
  • Case studies illustrate specific tensions and solutions: in the Salt River Project, concerns included the threat of service disruption and the targeting of prepayment plans at low-income households, which were addressed through customer engagement and program opt-outs. The California Solar Initiative utilized $160 million in incentives and green-jobs training to reach low-income customers.

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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