Low-Income Households Shortchanged on State Funds for Energy Savings Programs

The state’s Public Service Commission commits only 30 percent of the funding that goes into energy saving programs to low- and moderate- income New Yorkers. The rest will be earmarked for residential and commercial properties that are linked to homeowners or renters in higher income brackets.

On May 15, the state’s Public Service Commission (PSC) published a decision on how it will divvy up $5 billion in ratepayer dollars New York has at its disposal to fund energy saving programs for homeowners and renters over the next five years.

These energy efficiency and building electrification (EE/BE) programs help New York residents keep energy costs down by covering their utility bills, insulating homes, and giving out tax rebates for more efficient heating and cooling equipment.

The PSC’s decision, which has been two years in the making, commits only 30 percent of EE/BE funds to programs that serve low-and moderate-income (LMI) households. The other 70 percent will be earmarked for residential and commercial properties that are linked to homeowners or renters in higher income brackets.

“Not committing more money to low-income programs means that not enough households are getting the help that they need. We are already seeing that more and more people are unable to afford their energy bills,” said Jessica Azulay, executive director for the Alliance for a Green Economy (AGREE).

As the cost of energy keeps climbing in New York, those who make up the 40 percent of households on low to moderate incomes struggle to foot the bill. Over the last three years, every utility company in the state raised its electricity rates, according to a report from AGREE. And over 1.2 million New York families were two or more months behind on their energy bills last year, the report estimated.

Leading up to the PSC’s decision, over 150 businesses, consumer advocacy groups and environmental organizations signed a petition urging the commission to dedicate at least 50 percent of its EE/BE funds to the LMI bracket. 

But the commission went with 30 percent, which in practice allocates $1.57 billion for LMI households from 2026 through 2030, according to the PSC.

Each energy saving program has its own rules for who falls under the LMI criteria. As an example, EmPower+, which offers energy efficiency incentives for low and moderate income households, sets limits at 60 percent or less of the State Median Income (SMI). A household of four, for instance, could qualify for the lower incentive with an annual income of $76,680 or less.

The PSC’s order that outlines the decision includes several recommendations on how to “optimize the budgets” dedicated to LMI programs, Chris Coll, director of the PSC’s Affordability and Equity Program said at a public hearing. 

The responsible state entity, the New York State Energy Research and Development Authority (NYSERDA), is required to “improve the geographic distribution of projects to ensure that LMI households across the state are able to benefit from these programs,” Coll noted.

Both NYSERDA and utility companies, Coll added, will also have to do a better job of identifying and referring low-income customers with the highest energy consumption rates to state programs that could help them reduce their costs.

These “adjustments” Coll argues will result “in an additional $97 million being made available” to programs that serve low- and moderate-income residents.

The PSC’s order also sets an expectation for New York authorities to “develop strategies and programs” that benefit disadvantaged communities, which the state defines as being disproportionately burdened by economic and environmental challenges.

“Staff will be tracking and reporting on disadvantaged community investments on an annual basis, going forward,” Coll added. 

The PSC’s order also included some wins for environmental groups who fought for the commission to align the EE/BE programs with the state’s landmark climate law, the Climate Leadership & Community Protection Act (CLCPA). The order ended most funding for gas equipment that helps drive climate change, setting money aside instead for insulating or weatherizing homes, and switching them to clean electric energy. 

Changes were also made to the eligibility criteria for EE/BE programs so more households can access them, especially in the New York City region where enrollment falls short (although some experts argue that more funding would have been a better way to improve access). The PSC also increased funds that help homeowners do the necessary repairs that will enable them to participate in weatherization programs. 

But environmental advocates say the wins fall short, as the bulk of the money will not be going to the lower-income households that need it most—at a time when federal funding is also drying up. 

“Significantly increased investments in energy efficiency and building electrification programs that directly benefit low and moderate income households are needed now more than ever, from Buffalo to Brooklyn,” said Clarke Gocker, senior director of movement building at the non-profit PUSH Buffalo, in an emailed statement.

The Big Beautiful Bill Act, a legislative package backed by President Donald Trump that passed the U.S. House of Representatives last week, included provisions that would rollback billions in clean energy investments for climate programs and energy tax credits.

The Trump administration has already terminated the entire federal staff that runs the Low Income Home Energy Assistance Program (LIHEAP), which helps households pay for utility bills in the winter and gives out free air conditioners in the summer. The president has suggested getting rid of the program all together in his budget proposal. 

“As the Trump administration makes moves to dismantle social safety net programs like LIHEAP and sets fire to critical climate and clean energy goals, Governor Hochul and the PSC should pull every policy lever within reach to address the energy affordability crisis right now,” Gocker urged. 

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