Energy Equity: Tackling Climate Change by Increasing Home Affordability

Energy Equity: At the Intersection of Climate and Housing Solutions

Tackling both the climate and the housing crises are two of the most important policy priorities for many communities across America, including right here in Charlottesville. Fortunately, solutions for these two important crises can be achieved together. Skillfully-crafted equitable housing policies can alleviate household energy burden by reducing energy expenditures and, thereby, increase housing affordability. In turn, homes with less energy waste are also more climate-friendly and can help improve health levels for members of the household.

At the intersection of climate and housing solutions is energy equity. Municipalities can advance energy equity by providing households with more equitable access to clean, affordable, and secure energy services. According to Stanford University, equitable clean energy access strives to close the life quality gap between households, by alleviating their energy burden while improving their at-home productivity, comfort and health levels. Universalizing access to solar energy and energy efficiency can serve as an economic stimulator and also help uplift historically disadvantaged communities by providing them with more livable-wage job opportunities.

Energy equity can also contribute to climate justice as populations without an equitable access to energy may not be able to face the harsh effects of climate change, despite historically contributing less to it. In particular, a 2020 study found that historically underserved communities are disproportionately exposed to the health risks of  extreme heat waves. These communities, often populated by systematically excluded households, could greatly benefit from the advantages of an expanded access to energy efficiency; such as improved energy/housing affordability and increased resilience and comfort.

Energy Equity: An Outcome of Carefully-Designed Energy Affordability Policies

The potential equity benefits of energy efficiency and renewable energy programs are not an inevitable outcome of them and must be intentionally designed by authorities. For example, a recent report from ACEEE informed that although investments in weatherization could reduce low-income household energy burden by 25%, many low- and middle-income households simply cannot afford the upfront capital needed to invest in energy efficiency.

With the goal of better understanding how to promote equitable clean energy policies in our community, C3 developed its Uncovering Energy Inequity and Climate Action Incentives  reports, which indicated that policymakers must pay close attention to the gap that exist for renters, lower-income households, and  people of color when accessing credit and climate incentives to undertake clean energy investments. For instance, landlords have very little incentive to fund energy upgrades for their renters when the renters, and not the landlords, ultimately enjoy the energy savings and other benefits resulting from the investment – a problem known as the “split incentive”. Although renters may also make energy saving investments, this behavior is inhibited by the uncertainty surrounding their length of stay in a given property.

Regarding access to climate incentives, we found the great majority of the 32 energy upgrade incentives offered by public and private entities to Charlottesville’s residents were single-use rebates of up to $100 which in turn required applicants to either be homeowners or have good credit history — only 16% of the rebates specifically target lower-income households. These barriers are further exacerbated by C3’s findings that a large majority of the City’s renters and highly energy-burdened households are low income and people of color.

Steps Towards an Energy Equitable Community

Thanks to our community’s active and effective advocacy, Charlottesville has confirmed its intention to equitably address the climate and housing crises by setting leadership-level climate goals and committing to achieve an equitable housing market. Moreover, the City Council has identified that policies aimed to help the City achieve its climate goals should include equitable solutions such as funding programs that help increase residential energy performance with incentives compatible with increased housing affordability for all.

Still, two major compasses for policy development and decision-making at the municipal level — which are developed only every 4 to 5 years — are currently being elaborated. They are the City’s Comprehensive Plan and City Council’s Strategic Plan. This offers a great opportunity to ensure  that topics of importance, such as climate solutions and affordable housing, are not addressed in silos. Intersectional solutions that can benefit multiple goals simultaneously (such as energy equity) should receive a higher priority in future policy policy developments. 

This is a critical time to make your voice be heard. Please join C3’s presentation to City Council on Energy Equity next Monday, October 19th (which starts virtually at 6:30pm), an add your voice to C3’s policy campaign to ensure that City authorities require that these two plans include intersectional solutions and a “climate lens” that guide future investments and regulations for affordable housing, land-use, transportation, and other important climate-relevant topics. 

Thank you for your climate leadership!