Low-income Energy Efficiency Programs
Low-income families are particularly susceptible to high and fluctuating energy costs, based on the earnings to expenditure ratio. Estimates indicate that while the average US household's energy costs are equal to 7% of household income, low-income households spend 17% of their household earnings. The immediate result is that less money is available for satisfying other basic needs. Also, the frequently poor quality of low cost housing creates an increased burden, since more energy is needed to keep residents healthy and comfortable.
Browse Low-income Energy Efficiency Programs
General services provided to low-income residents of California
You can find the implementers of these and other programs in our program finder.
Low Income Home Energy Assistance Program (LIHEAP): Provides financial assistance to eligible households to offset the costs of heating and/or cooling dwellings.
Weatherization Program: Provides free weatherization services to improve the energy efficiency of homes, including attic insulation, weather stripping, minor housing repairs, and related energy conservation measures.
Low Income Energy Efficiency (LIEE): Services include attic insulation, energy efficient refrigerators, energy efficient furnaces, weather stripping, caulking, low-flow showerheads, water heater blankets, and door and building envelope repairs that reduce air infiltration.
California Alternate Rates for Energy (CARE): Program provides senior and low-income eligible customers with a discount on electric and natural gas bills.
Energy Assistance Program Rate (EAPR): includes a one-year electric rate reduction home energy audit, free compact fluorescent lights, and replacement of inefficient refrigerators. Income qualification and enrollment by Red Cross.
Family Electric Rate Assistance (FERA): is a rate reduction program for large households of three or more people with low- to middle-income. It provides more electric use at a lower rate and is designed for customers who exceed the income threshold for the CARE discount program.
Energy Crisis Intervention Program (ECIP): Provides payments for weather-related or energy-related emergencies.
Medical Equipment Discount Rate: A medically based discount on water, gas, and/or electricity charges may be available for an applicant with a medical condition, treatment or equipment that causes higher than normal utilities consumption.
Lifeline Rate Program: Available to qualified low-income seniors (age 62 and over) and low-income disabled customers.
California Interfaith Energy Assistance Project (CIEAP): An energy assistance initiative for low-income people in seven designated geographic areas, serving nine counties in California.
Salvation Family Emergency Services: A program that addresses basic human needs, acting as a "safety net" for those who have nowhere else to turn. By providing food, clothing, utility assistance and counseling, caseworkers at Family Emergency Services prevent homelessness through crisis intervention.
Program Funding Sources
Efficiency funding for low-income families is key to our statewide drive towards increased energy efficiency. The short and long term benefits are economic relief and cost-effective home improvements. While assistance relieves pressure on individual households, the benefits also ripple into the community. With less money spent on energy, more money is available for other goods and services. If this money is spent locally, as is often the case, the local community captures this revenue, with further benefits rippling out from there.
Low-income energy efficiency funding comes from several sources.
Following the energy crisis of the 70s, in 1981 the US federal government established the Low-Income Home Energy Assistance Program (LIHEAP). LIHEAP provides state, regional and local implementers a means to assist low-income energy customers in paying their bills. It also provides access to more efficient appliances.
The US Department of Energy (DOE) offers state and local funding earmarked specifically for home weatherization. This funding provides cost-effective energy-efficient light sources, showerheads, appliances, weatherization of windows and doors, tuning up heating and cooling units, and the installation of insulation.
A Public Goods Charge is added to every energy user's utility bill and used, in part, to fund low-income programs.
Regional utilities have designed innovative volunteer programs that draw on their own clientele to assist other of their low-income clientele. This brings the educational aspect of energy efficiency into the purview of more Californians every day.
