Low-income energy efficiency programs provide financially vulnerable utility customers with important energy savings. To date, low-income programs have faced challenges in driving participation — fueling myths that suggest low-income populations are difficult to reach. This paper explores these myths in turn. At a time when low-income assistance funds are shrinking and needs are growing, it is more important than ever to serve low-income populations with effective programs. This paper will examine data from all households in the service territory of power’s utility partners including energy usage data, customer survey data, and program participation data where available, as well as an industry research, to show that low-income populations are diverse in their consumption and demographic characteristics. Additionally, while participants can be difficult to achieve, low-income households can participate and save at levels commensurate with general populations once engaged. By employing nuanced messaging, utilities can empower low-income populations to become efficient consumers. This win-win provides both energy efficiency and monetary benefits (e.g., avoided subsidization costs) to the utility while reducing the bills for low-income populations. Doing so creates positive outcomes for utilities, ratepayers, and the system as a whole.

Energy service professionals, including utility portfolio managers, consumer advocates, and community-based organizations, continue to face challenges in serving the needs of low-income populations. Enrollment rates and investment levels in low-income energy efficiency and assistance programs remain low. The Low Income Home Energy Assistance Program (LIHEAP), for example, reaches fewer than 25% of eligible households (O’Dwyer 2013b; CRSR 2013).2 And declining funding from the American Recovery and Reinvestment Act (ARRA) as well as from LIHEAP further compound the problem, with LIHEAP block grant funding alone having decreased 35% since 2010 (LIHEAP 2014).3 Yet the needs of low-income families are growing. Over 10.4 million American families have income below 200% of the Federal Poverty Level, a figure that has steadily increased from 28% of working families in 2007 to 32% in 2011 (WPFP 2013). At the same time the total number of households receiving LIHEAP assistance has declined by 17% between 2010 and 2013, from about 8.1 million to 6.7 million (NEADA 2013). In this environment of decreasing funding and increasing need, it is critical to maximize the value of every available dollar.