What is the Energy Burden?

Most of us pay an electricity or heating bill each month, but not everyone spends the same share of their income to keep the lights on or their home at a safe temperature. That share of a household's income spent on energy is known as the energy burden.

For example, a $100 energy bill places a much greater financial strain on a household earning $30,000 a year than on one earning $130,000.

Put simply, the energy burden measures how much of a household's income goes toward paying for electricity, natural gas, heating, and other household energy needs. 

Many households spend only a small portion of their income on energy. The average U.S. household spends about 2% of their income on energy bills. An energy burden of 6% or more is considered high. In contrast, the average energy burden for low-income households is close to 9%. One in four low-income households spends more than 15% of their income on energy, meaning they spend more than $15 out of every $100 they earn just to keep the lights on and their homes heated or cooled. 

Behind these statistics are real people making difficult decisions every month. Some households must choose between paying their utility bill and paying for groceries, medication, or other essentials. Others keep their homes at unsafe temperatures because they cannot afford higher energy costs.

As extreme heat, cold, and severe weather become more common, keeping homes at safe temperatures becomes increasingly important, making affordable access to energy even more critical.

Low-income households are particularly vulnerable to factors that increase energy bills, such as older homes with drafty windows, poor insulation, and inefficient appliances. Renters may not have the ability to install solar panels or make other energy-efficiency upgrades, even if those improvements would lower their utility bills. In addition, some households have limited time, financial resources, or access to programs that could help reduce their energy use.

One example is Darlene Jenkins, whose high utility bills and accumulating late fees left her owing more than $2,500 to her utility company. Without assistance, the debt could have put her at risk of eviction and homelessness.

The energy burden is about much more than paying an electricity bill. It shapes the choices people make every day and has lasting consequences for their health, financial security, and ability to thrive in a changing climate.

Over the coming months, we'll explore why some households experience a high energy burden, what programs and policies are already helping, and where important gaps remain. We'll also share updates on our research and the stories of people living with the energy burden.