What is Energy Burden?
Energy burden refers to the percentage of household income spent on energy costs. When utility rates rise, families with limited incomes feel the impact the most, often having to choose between paying for electricity or other essentials like food, medicine, or rent. In Washington, low-income households spend an average of 6-10% of their income on energy, compared to just 2-3% for higher-income households
Shedding Light on Utility Rate Hikes
Recent rate hikes have intensified this issue. Seattle City Light rates are increasing by 4.5% annually through 2026, and Puget Sound Energy (PSE) implemented a 12% rate hike in January 2024, with further increases expected (Seattle City Light and PSE). For families already struggling, these higher costs make it even harder to afford basic energy needs, let alone invest in clean energy solutions that could reduce their long-term expenses.
The Impact of Energy Burden on Vulnerable Communities
Energy burden disproportionately affects minority and low-income households, renters, and those in older, less efficient homes. Many of these households:
- Lack access to energy efficiency programs, leaving them with higher-than-average energy costs.
- Live in inefficient housing, where poor insulation and outdated appliances lead to excessive energy waste.
- Have fewer options to adopt solar power, since many utility providers focus clean energy investments on higher-income areas.
The Growing Energy Gap in Washington
A 2023 study by the Washington State Department of Commerce found that 38% of low-income households in Washington are classified as “energy burdened,” spending more than 6% of their income on energy. Without intervention, the energy gap between high- and low-income households will continue to widen.
Solutions to Ease the Energy Burden
The good news? There are programs designed to make clean energy and efficiency upgrades more accessible for those who need them most.
Community Solar: Affordable Solar for Renters and Homeowners
Community Solar allows multiple households to benefit from a shared solar project, reducing reliance on fossil fuels and lowering energy costs. In Washington, over 40 Community Solar projects have been launched, helping thousands of residents save on their energy bills. Subscribers receive bill credits for the power generated, making solar energy accessible even for those who cannot install panels on their own property.
Solar for All: Expanding Access to Solar
Thanks to the Inflation Reduction Act, Washington has received $156 million to fund solar projects for low-income families. As of early 2024, more than 300 homes and community buildings are set to receive solar installations, significantly expanding access to clean energy.
Energy Efficiency Upgrades: A Simple Way to Save
Many low-income households struggle with high utility bills due to inefficient housing. Simple energy efficiency upgrades can help:
- LED bulbs save up to 75% on lighting costs.
- Proper insulation and weatherproofing can reduce heating and cooling expenses by 15-25%.
- Upgrading to ENERGY STAR-certified appliances can lead to long-term savings.
- Installing a smart electrical panel like SPAN allows homeowners to monitor and manage energy usage in real time, reducing unnecessary consumption and saving money.
Washington’s Weatherization Assistance Program has already helped over 30,000 low-income households improve energy efficiency, reducing annual energy costs by $300-$500 per home.
Washington Families Clean Energy Grant
To offset the impact of rising utility rates, Washington has introduced the Washington Families Clean Energy Credits Grant. This program provides a $200 bill credit for eligible residents, helping families cope with increasing energy costs. More than 400,000 households are expected to benefit from this program.
How Does This Affect You?
If you’re feeling the impact of higher utility rates, you’re not alone. Programs like Community Solar and Solar for All are designed to help households transition to clean energy—regardless of income level or housing situation. Investing in energy efficiency upgrades can also lead to significant savings over time.
Take Control of Your Energy Journey with NWES!
At Northwest Electric and Solar, we support Washingtonians across the socioeconomic spectrum on their energy journey. Whether you can install solar or not, we are here to educate, inspire, and provide solutions to help you save money, become more resilient, and contribute to the sustainable future we all desire. We can help you navigate available incentives, explore energy efficiency options, and take control of your energy future. With electricity rates rising, now is the best time to take action.
