Energy Burden
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.
Energy Burden in Cincinnati
resources to learn more
- This 2019 report from the Greater Cincinnati Energy Alliance found that high energy burdens are not evenly distributed across Cincinnati. Sixteen of Cincinnati's neighborhoods were shown to have energy burden levels greater than 6%, which is considered the threshold for energy poverty.
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Understanding Cincinnati’s multifamily housing stock: An analysis to improve access to energy efficiency for low-income households, published by Dr. Amanda Webb and David Moore at the University of Cincinnati
- The Energy Justice Workbook
- Urban Energy Justice Lab
- Just Energy: Policies and Practices Action Toolkit