Clean energy offers a variety of environmental and economic benefits while reducing fossil fuel dependence and associated financial and environmental costs. Investments in clean energy can support low-income households that experience a disproportionate energy burden.

Low-income households spend much more of their income on their utility bills compared to higher-income households, partially due to a lack of weatherization. Energy efficiency can improve the comforts of everyday life and save families money.

In New Jersey, there are several programs designed to help families make their homes more comfortable and save on their utility bills. These programs also provide long-term energy affordability for families who no longer need to use as much energy to live in a safe and comfortable home. Programs include the state’s Comfort Partners, Weatherization Assistance, NJ SHARES and Payment Assistance for Gas and Electric initiatives, but all of the eligibility requirements and application processes can become confusing really quickly. The Housing and Community Development Network of New Jersey aims to make it easier for residents to access this information. We are thrilled to launch a toolkit that makes it easy for residents to find information about eligibility requirements and application instructions in one place.

As we built this toolkit, we discovered that many program goals are not being met. Using publicly available data from the various utility service providers’ financial reports, we found that 35 major energy efficiency programs are offered by seven providers. However, only four programs met or exceeded their enrollment estimations. Our review found that the most requested program is home weatherization for low- to moderate-income PSE&G customers. This program exceeded projected demand by over 2,000%.

Unfortunately, a significant gap appears to exist between anticipated participation within the majority of programs, as the average service falls well below half of the programs’ anticipated annual enrollment. This trend raises questions about the overall factors impeding program use and the solutions needed to enhance ease of access and understanding of them.

The need for these programs is an ever-increasing reality as climate change and other factors cause the average cost of home heating and cooling to rise annually. According to the U.S. Department of Energy, a home built before the 1960s spends, on average, the same amount of money on heating and cooling as a home constructed in 2000 or later, despite the latter being almost 30% larger on average.

Leave no one behind

With heating and cooling typically consuming 50% of a household’s energy bill, the disproportionate financial burden placed on low- to moderate-income families will only increase without these programs.

Energy efficiency improvements and other changes can lower energy costs in the long run, with measures as simple as duct and air sealing proven to lower the average household bill by up to 20%. However, we need to make sure no one gets left behind, particularly our low- to moderate-income communities of color, who are particularly vulnerable to the climate crisis.

One solution that may help expand accessibility and participation in various programs is to pilot a universal application process at the state level. The rigorous application instructions and requirements are obstacles for families to take advantage of these programs in the first place.

To break down barriers, New Jersey should pilot a universal low- to moderate-income program application in which families submit one application to be considered for all programs for which they are eligible. We look forward to continuing to work with our partners to ensure communities are aware of money-saving programs and have the resources and information needed to apply for them.

Clean-energy sources have become significantly more affordable over the past decade, and that trend continues today. Without the expansion and improvement of clean-energy programs, climate solutions will continue to be deployed along socio-economic and racial lines.