Celebrating Energy Efficiency Day

The Importance of Energy Efficiency for Low-Income Households

Ever wonder what can save households money, create jobs, and reduce pollution all at once? The answer:  energy efficiency.

Today, NEADA is joining governments, corporations, and organizations around the country to celebrate Energy Efficiency Day and highlight the importance of energy efficiency for low-income households. NEADA is using this day to reflect on how the Low Income Home Energy Assistance Program (LIHEAP), and its companion program the Weatherization Assistance Program (WAP), help low-income households reduce their energy burdens through energy efficiency assistance.

One of the driving reasons behind the importance of weatherization is to reduce costs for energy-burdened households. 67% of low-income households and 25% of overall households countrywide are considered to have a high energy burden, meaning they spend 6% or more of their income on energy bills.

The high energy burden these households face is partially caused by the older homes these families live in, with inefficient, aging appliances and insulation. If households could afford to upgrade their appliances and building envelopes, their energy burden would be reduced to a more affordable level. The issue, however, is that the high upfront cost of installing energy efficient technology can be a barrier for low-income households, even if they will see savings in the future.

LIHEAP plays a part in addressing this energy efficiency gap through weatherization assistance.

WAP has a proven record of reducing annual household heating consumption by 18 percent and saving households an average of $283 in energy bills annually. But the impact is far greater than just savings on a family’s energy bill. Every dollar spent on energy efficiency in a low-income home improves the safety, comfort, and economic stability of the family that lives there. Also, making a household’s energy burden more affordable reduces their reliance on LIHEAP, allowing the program to reach even more customers.