Household energy insecurity

The cost of energy relative to household income impacts affordability of energy. Households are generally defined as energy burdened if energy costs exceed 10% of gross household income.[1] In areas with more infrastructure and resources, households may face barriers to meeting energy needs due to the cost of purchasing, repairing, or maintaining equipment such as air conditioners or heating units as well as costs from running the equipment. In areas with fewer infrastructure and resources, relative energy cost may impact type of fuel used, such as cheaper less efficient and more polluting fuels being used over more efficient and less polluting but costly fuels.[2]

Housing conditions may impact energy insecurity through household energy efficiency. Energy insecure households are more likely to report poor insulation or drafts in their home such as from windows or doors,[3] which may be more common in older or poorly maintained housing. Poorly insulated homes may have higher energy costs. Household energy efficiency improvements have also been associated with small but significant improvements in health.[4]

Concerns about energy cost may influence energy-related behaviors at the household and individual levels. People might try to reduce energy bills by reducing usage of energy systems by keeping their homes at temperatures that might either be too hot or cold. When faced with high energy costs, households might also sacrifice basic necessities like healthy food (referred to as "heat-or-eat").[5][6]

The United States Energy Information Administration Residential Energy Consumption Survey (RECS) considers households to be energy insecure if they:

"have received a disconnection notice, have reduced or forgone basic necessities to pay energy bills, kept their houses at unsafe temperatures because of energy cost concerns, or been unable to repair heating or cooling equipment because of cost."[3]

In the United States, low-income households spend an average of over 8% of gross income on energy costs and household below the federal poverty line spend over 16% of gross income, based on 2016 American Community Survey estimates of household energy consumption.[7] In 2020, energy insecure households in the United States paid more for energy on average and per square foot than households not considered to be energy insecure.[3]

• Maricopa County in Arizona established an Energy Insecurity workgroup in 2020.[8]
• New York State has a Home Energy Assistance Program (HEAP).[9] New York City developed a Get Cool program in 2020 that installed free air conditioning units for tens of thousands of low-income older adults. The city also provided millions of dollars in aid to hundreds of thousands of families to help pay for summer 2020 energy costs during the COVID-19 pandemic.[10]

Households in India may face barriers to energy access due to a lack of available and affordable clean sources of energy.[2] Costs for cooking and lighting can reach upwards of 20% of non-food expenditures in Indian households.[2] Energy sources used may differ between rural versus urban communities. Cooking and heating with biomass fuels such as wood or dung is declining but is still fairly prevalent, contributing to household air pollution and is associated with negative health effects.[11]