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Slide1

HOME

HEATING,

RENT, OR MEDICINE?Slide2

Impossible choices

Many low-income households face a terrible choice: Paying for household

energy OR paying for health care, food, or housing2Slide3

Energy costs can be

10-20% or more

of a low-income family’s income versus 3-4% for an average income familyEnergy needs don’t decline much with income

Low-income households use

50% MORE

energy per square foot for heating, on average

Low-income households tend

to have

less energy-efficient appliances

Many elderly or ill people need warmer homes in the winter

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1

3

4

This is known as

ENERGY BURDEN

.

ENERGY BURDEN

WHY?

3Slide4

2011 NATIONAL SURVEY:

More than 1/3rd

of households receiving assistance went without medical care, dental care, and/or needed medicine due to high energy costs at some point in thelast five years

Almost 20%

have someone

become

ill

due to

cold

homes

3

HARM TO HEALTHSlide5

Increased homelessness

$

1,251-3,698/month: The cost of housing a homeless family in Washington, D.C.(2010 HUD survey)

6%

of energy assistance recipients

were evicted;

4%

were foreclosed (over five years).

Pay rent/mortgage or pay energy bill?

Added health costs from homelessness: More than

$1,400/month

(E.R. visits and hospitalization)

5Slide6

Renter-landlord issues

Many

low-income households are renters with landlords who often refuse to make improvements, participate in energy audits, or in free energy improvement programs.Renters are often trapped in low- efficiency homes. Landlords can make investments, but lack the incentive when they don’t pay the bills.

6Slide7

WHAT ABOUT ENERGY

ASSISTANCE PROGRAMS?

Only about 1/3 of eligible Maryland families receive energy assistanceEven then bills can remain 7-10% of income or more REASONS:Assistance funds are limited

Household

incomes have

stagnated

Needs

have increasedSlide8

THE SOLUTIONS:

AFFORDABLE BILLS

Affordable energy costs are defined as no more than6% of income

This will increase direct assistance costs but will result in large indirect savings.

HOW? Affordable energy bills = lower public expenditures in areas like shelter and health care

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Other

(food, transport, medicine, etc.)

70%

Rent/

mortgage

24%

Energy

bills

6%

Affordable

shelter

costs

30%Slide9

Now is the time to bring solar to low-income households:

Solar energy costs have fallen dramatically

Providing solar energy via utilities could reduce energy bills and aid requirementsTHE SOLUTIONS:SOLAR ENERGY

Photo: Lake City Village low-income housing, Seattle, Washington

.

Photo

courtesy of

SolarWorld

www.solarworld.com

All new public and publicly subsidized low-income housing should be net-zero with solar generation onsite if possible.

9Slide10

Efficient appliances and weatherization can reduce energy bills and the need

for assistance.

Example: A heat pump water heater would, on average, reduce bills by about $220/year compared to a regular electric water heater.Going from oil/propane heat to efficient heat pumps can greatly reduce energy bills.10EFFICIENCY CAN REDUCE COSTSSlide11

AFFORDABLE ENERGY PLAN:

direct COSTS AND social BENEFITS

111.Slide12

POLLUTION REDUCTION

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+ other air pollutant reductions

0

2.Slide13

Benefits

to Maryland

prevent HOMELESSNESS133.Slide14

MARYLAND SHOULD ADOPT A COMPREHENSIVE APPROACH

The fundamental pillar is to make energy affordable for low-income households and then reduce the costs of assistance with solar and efficiency investments. This will create energy security for low-income households and produce large, quantifiable social benefits.

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FOR MORE INFORMATION

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www.ieer.orgSlides based on“Energy Justice in Maryland’s Residential and Renewable Energy Sectors”http://ieer.org/resource/energy-issues/energy-justice-marylands-residential/ Arjun Makhijani

Institute for Energy and Environmental Research

6935 Laurel Avenue, Suite 201

Takoma Park, Maryland  20912  U.S.A.

301-270-5500