Energy Burden

Many Cincinnati residents live in energy poverty. “Energy poverty” occurs when more than 6% of a household’s income is spent on utilities. To reduce energy poverty levels, the City must implement strategies to improve the energy efficiency of housing in its priority communities.  

According to the U.S. Energy Information Administration, 31% of Americans struggle to pay household energy bills or maintain adequate temperatures in their home. One in five Americans report forgoing other necessities like food in order to pay their energy bills. Of this population 14% struggle with utility disconnections and 10% live in unhealthy temperatures. These challenges are not evenly distributed across communities. 

 

 

Energy burden is the percentage of a household’s annual gross income that goes toward payment of annual utility costs (electric, natural gas, or other heating fuel). A household is considered “energy burdened” if more than 6% of their monthly income is spent on utilities).   

You can calculate your energy burden using the equation below:  

ENERGY BURDEN = Total Annual Energy Utility Spend / Total Gross Household Income  

This measure helps to illustrate energy prices and inefficient housing disproportionately impact different population groups or households in different parts of the community. Energy costs that may be affordable to a middle-class household, are not likely affordable to a low-income household, but the costs per unit of energy are the same. Because of this reality, low-income households spend three times more of their monthly income on energy bills than higher income households.  

According to the U.S. Energy Information Administration, 31% of Americans struggle to pay household energy bills or maintain adequate temperatures in their home. One in five Americans report forgoing other necessities like food in order to pay their energy bills. Of this population 14% struggle with utility disconnections and 10% live in unhealthy temperatures. These challenges are not evenly distributed across communities.