Don't Break the Bank: Are You Paying More for Energy Than the Average American?

Country roads, take me home, to the place… where I pay significantly more for energy than wealthier, urban areas do? Doesn’t have quite the same ring to it. Bad lyrical puns aside, an expansive concern in the U.S. is that low-income households’ energy burden is significantly higher than middle and upper-class households. But what does energy burden mean, and what can be done about such a widespread issue?

As defined by the Office of Energy Efficiency and Renewable Energy (EERE), energy burden is the percentage of a household’s income spent on energy costs. EERE also notes that the national average low-income household energy burden is 8.6%, three times more than the average non-low-income household in America.

This graphic from the North Carolina Justice Center shows low-income energy burdens by county across NC.

Why do low-income households end up spending such a high amount on energy expenses? Several possible reasons often overlap to increase energy costs for vulnerable communities. Some homes may have poor insulation or energy efficiency issues, causing heating and AC systems to expend more energy to keep homes at a comfortable temperature. Many low-income also rent instead of owning their homes (59% according to EERE) and thus have less opportunity to fix these problems or control their energy usage. These homes may also use more fossil fuel due to the equity issues with clean energy mentioned in last week’s blog.

Rural homes, especially rural low-income homes, also experience high energy burdens. Electricity distribution systems may deliver energy to rural households at a higher rate due to the added infrastructure. As the Natural Resource Defense Council (NRDC) mentions, there are often smaller utilities or companies that manage the electricity in these communities, they are less likely to invest in updating infrastructure and housing with a focus on energy efficiency. Rural low-income communities may see energy burdens of up to 30%.

Gerlene Wilmoth in Eastern Tennessee surveys her house’s foundation, where air is leaking into the family home. Story by The Appalachian Voice.

According to the Climate Reality Project, areas in the Southeast and Appalachia have some of the highest energy burdens in the country. There’s no question that this current reality hurts people here in North Carolina and across the country. What can we do about it? The solution depends on making energy efficiency improvements and renewable energy more accessible to rural and low-income areas. To do that, we as voters and customers must encourage our politicians, utilities, and energy providers to create and enact policies that make these changes accessible to the public. If this were to be successfully done, energy burdens could significantly decrease for low-income and underserved communities across America.

No one should be using up to a third of their total income just to keep the lights on. To alleviate this stress on low-income families, we must keep expanding clean energy by focusing on equity and justice for underserved communities. Even if you make basic energy efficiency improvements to a household, the results on your next electricity bill might just pleasantly surprise you! Thanks for reading.

P.S. To see the impact energy burden has on real people in the Appalachian Mountains that I call home, please read this article created by the intern team of The Appalachian Voice in 2017.