In an effort to reduce energy costs for working families and to create “good-paying jobs” the Biden administration Wednesday announced new solar-power related projects for low-income homes.
“As extreme heat continues to affect tens of millions of Americans, hitting low-income families harder than others, President [Joe] Biden is implementing new programs to help maintain a consistent and affordable energy supply to cool their homes,” said a fact sheet about the initiative.
According to the fact sheet, the upcoming projects are supported by the Bipartisan Infrastructure Law.
Actions include new guidance from the Department of Housing and Urban Development that will enable people in HUD-assisted rental housing to subscribe to local community solar if it is available. This alone is expected to connect 4.5 million families with the benefits of solar power, including saving 10% annually on electric bills on average. Some programs will provide even more savings, such as a Washington D.C. program that saves families 50% per year.
“Low-income households spend a disproportionate amount of their earnings on energy costs – according to the Department of Energy’s (DOE) Low-Income Energy Affordability Data (LEAD) Tool, the average low-income household spends almost 9% of their income on energy,” said the White House. “That adds up to tens of millions of Americans who are forced to make hard decisions between keeping the lights on or staying cool, and making other essential purchases like food and medicine.”
While some have pointed out that the production and decommissioning of solar panels can be an environmental strain, evidence shows that they are better for the environment than traditional energy sources.
Another cost-saving action announced by HUD is a program to help small rural housing authorities make energy efficiency upgrades. These housing authorities will then be able to retain the saving to reinvest in improvements to rural HUD supported rental housing.
Previously, HUD provided guidance in Illinois, D.C. and New York to allow community-net-metering (or shared renewable energy credits) to be excluded from household income and utility allowance calculations.
According to an announcement from the Department of Energy and the Department of Health and Human Services Colorado, Illinois, New Jersey, New Mexico, New York, and Washington, D.C. have signed up for the Community Solar Subscription Platform pilot. This program is designed to provide households participating in the Low-Income Home Energy Assistance Program (LIHEAP) with electric bill savings. Per Department of Energy estimates, families covered by the pilot program could save a combined $1 billion annually.
The new Sunny Awards for Equitable Community Solar program will also recognize communities that implement “best-in class” community solar programs and projects that lower costs and increase access to solar.
To help bolster the U.S. solar energy workforce, the Department of Energy plans to spend $10 million in Bipartisan Infrastructure Law funds to “support new workforce programs that expand union density and increase participation from underserved and underrepresented groups in the rapidly growing solar industry,” according to the White House. Hundreds of thousands of solar jobs are expected to be created over the next decade with this investment.
These projects, and other actions announced Wednesday are expected to further the president’s Justice40 Initiative. This initiative commits to delivering at least 40% of the benefits from federal climate and clean energy investments to disadvantaged communities that are marginalized, underserved, or overburdened by pollution, said the White House.
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