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Partner Baseline Assessment Guide: Clean Energy for Low Income Communities

The U.S. Department of Energy Better Buildings Clean Energy for Low Income Communities Accelerator aims to lower energy bills in low to moderate income communities through expanded installation of energy efficiency and distributed renewables. Upon joining the Accelerator, partners committed to developing Action Plans after a year. As shown in the diagram below, baselining is a useful approach to informing your planning efforts, and should involve input from a broad range of stakeholders. The following guide was developed by DOE to assist partners with baselining, and identifying needs and gaps to address in action plans.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Action Plan Template: Clean Energy for Low Income Communities Accelerator

This document is provided as a planning tool for partners in the Clean Energy for Low Income Communities Accelerator (CELICA). Many partners will publish objectives, strategies, and proposed actions through more extensive reports or official recommendations. Others may choose to use an internal strategy document such as the CELICA Action Plan template to help guide progress.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Activating Opportunity Zones for Rapid Solar+Storage Deployment in Low Income Communities (Final Report)

Millions of Texans choose their own power provider, giving them the option to have low-cost and even renewable energy delivered through their retail electric plan. However, Texans with less disposable income often pay more for electricity and have limited access to green energy and emergency backup power even though the costs of solar and wind power are at record lows and continue to decline. The Powered for Good initiative aimed to help deliver clean, affordable, 100% renewable electricity to low-income households in Texas’s Competitive Retail Areas, where households can choose their electricity provider. Objectives: The primary goal of this project was to develop and validate one or more affordable solar+storage products (i.e., priced less than of $0.14/kWh) that Retail Electricity Providers (REP) can offer to LI households. The team achieved three objectives: 1. Investigate how to best reduce electricity costs and increase availability of emergency power for LI customers; 2. Build momentum for, and facilitate an approach to, a Texas-based pilot deployment of such solar+storage products, with a goal of greatly expanding this approach to a large segment of the LI population in Texas; 3. Provide the structural framework, finance model, and roadmap to potentially increase investment of solar+storage projects in LI communities across U.S. states when modified to meet their state-specific laws and regulations. The team evaluated the market of viable solutions for low-income Texans through interviews and focus groups with professionals and residents with lived experience. The team then piloted a low-cost retail electric product. Following the pilot, the team developed educational materials, including fact sheets, a Go Green Save Green interactive guide, and an Electricity Bill Analysis Tool. The team is now working to increase power resilience and reduce energy insecurity with micro solar and storage in partnership with local entities in the Harris County area. Key Findings: Informed by Powered for Good research, including the experiences on Texas residents and electricity system experts, the Powered for Good team developed a pilot that was implemented by Energy Well Texas, a new company formed in late 2020. The pilot featured a combination of a 100% clean residential energy offering delivered through the electrical grid plus a selection of batteries, lights and a solar panel that provided participants with varying levels of backup power. For the 8 customers who submitted previous bills, the Energy Well Texas pilot reduced energy bills by about 30%. In Houston, residents earning less than 30% of Area median Income (AMI) spend an average 13% of their income on energy or about $1,555 per year. Repeating the pilot results for these residents could yield $466 in savings per customer or about 4% of their income. While this will not end energy poverty, it is a big step toward that goal. The Powered for Good and Energy Well Texas teams are currently planning their post-pilot phase of service offerings.

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A systematic literature review on residential demand response with a focus on opportunities for low-income communities

Demand Response improves efficiency and grid stability, reducing peak load and total system costs. It can potentially contribute to other societal aspects, including mitigating climate change and improving air quality, health, stress levels, and comfort. This paper reviewed the literature on residential demand response programs in the United States, through the lens of the five energy justice principles, identifying and categorizing a set of 165 papers from 1960 to 2024. As a result, we observe significant progress in distributive justice, however, mostly focused on increasing participation rather than attending specific needs of historically marginalized communities. Concordantly, recognition and procedural justice dimensions are lagging, while cosmopolitan justice studies are scarce, underscoring a need to improve the measurement of impacts resulting from the implementation of demand response programs. Future research opportunities include the consolidation of standardized definitions and metrics, to better understand burdens and needs of diverse residential users. In terms of policy, collection and transparent access to standardized data is required as a condition to the design of flexible, customizable, transparent, and easy to navigate demand response programs. As a result, a better understanding of and engagement with customers has the potential to increase adoption rates, persistence in the program, and overall impacts for the system, households, and society.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Screening Tool for Equitable Adoption and Deployment of Solar (STEADy Solar)

The Screening Tool for Equitable Adoption and DeploYment of Solar (STEADy Solar) is a database and mapping tool designed to promoting clean energy investments for low-income communities across the United States. The tool indicates locations that may be eligible for the Investment Tax Credit bonus adders defined in the 2022 Inflation Reduction Act (IRA) and combines this information with demographics, social vulnerability, solar technical potential, solar economics (modeled net present value), and building counts by use-type. It can be used by states, municipalities, community-based organizations, developers, and researchers to identify sites where solar projects may be economical and where federal incentives may be available to support equitable adoption of solar. Specific values include: Areas eligible for the Energy Communities Tax Credit Bonus Program (including brownfield site counts) Areas eligible for the Low Income Communities Bonus Credit Program (including Tribal Lands, and covered affordable housing project counts) Areas categorized as disadvantaged by Justice40 Commercial and Residential Solar economics characterized by the Net Present Value and Simple Payback Period Total Population, Race, and Ethnicity Median Household Income, Poverty rate, Household Tenure Social Vulnerability Count of buildings, developable rooftop solar capacity (in kWdc) and estimated annual generation potential (in kWh) on four building types: Government General Services, Government Emergency Response, Grade Schools, and Colleges/Universities. The linked report describes the STEADy dataset metadata and presents high level insights from the data. The downloadable and formatted excel dataset makes it easy for users to gain insights for their locations. Supporting .csv and shapefiles provide users with the full data to run their own analyses on equitable solar siting.

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The impact of policies and business models on income equity in rooftop solar adoption

Low- and moderate-income (LMI) households are less likely to adopt rooftop solar photovoltaics (PVs) than higher-income households in the United States. As the existing literature has shown, this dynamic can decelerate rooftop PV deployment and has potential energy justice implications, in light of the cost-shifting between PV and non-PV households that can occur under typical rate structures and incentive programmes. Here we show that some state policy interventions and business models have expanded PV adoption among LMI households. Additionally, we find evidence that LMI-specific financial incentives, PV leasing and property-assessed financing have increased the diffusion of PV adoption among LMI households in existing markets and have driven more installations into previously underserved low-income communities. By shifting deployment patterns, we posit that these interventions could catalyse peer effects to increase PV adoption in low-income communities even among households that do not directly benefit from the interventions.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

A Clean Energy Deployment Baseline for the Energy Community and Low-Income Tax Credit Bonuses [Slides]

The Inflation Reduction Act of 2022 introduced, for the first time, place-based federal tax incentives for projects sited in “Energy Communities,” potentially changing the economic calculus of where projects are best sited. Storage projects can qualify for a 10-percentage-point bonus to the Investment Tax Credit (e.g., from 30% to 40%), while wind and solar projects may qualify for either the ITC bonus or a 10% bonus to the Production Tax Credit (e.g., from $\$27.5$ to $\$30.25$/MWh). Energy Communities are areas with historical ties to fossil fuel industries and above average unemployment levels (FFEU), with closed coal mines or power plants, or contaminated properties. They seek to identify locations across the US that could especially benefit from economic revitalization. This report explores how the new federal tax credit incentives are impacting clean energy deployment patterns and establishes historical baselines against which future changes can be compared. We include a few case studies of clean energy projects going specifically to areas that were recently impacted by coal power plant closures to provide concrete examples of investments in Energy Communities. However, this publication does not assess how much of the incentive benefits pass from clean energy developers to hosting communities, nor does it offer a comprehensive view of the economic effects of clean energy deployment on Energy Communities. Key highlights include: - As clean energy projects take multiple years to conceptualize and develop, it is likely too early to see shifts towards Energy Community locations either among newly built projects or those that entered interconnection queues in 2023. - Approximately 35% of onshore wind, 50% of solar, and 60% of storage capacity built in 2023 and the first half of 2024 are located in Energy Communities, making them likely eligible for bonus incentives. While these bonus incentives were not available to projects coming online before 2023, we used 2023 Energy Community definitions to classify whether past projects were built in what is now considered an Energy Community. The deployment levels for 2023-2024 are similar to recent years (2020-2022) for solar and storage but slightly lower for wind. - Clean energy capacity has surged in the interconnection queues over the last few years, with about 45-50% of both recently proposed and total queued capacity being located in Energy Communities. While the amount of capacity in Energy Communities has also grown, its relative share is either stable (solar and storage) or slightly lower (wind) among projects that entered the queue in 2023. - Clean energy projects can be built at lower costs in Energy Communities. The levelized cost of energy after incentives was on average $\$9$/MWh (24%) lower for solar projects and $\$2$/MWh (6%) lower for wind projects built in 2023, relative to projects not located in Energy Communities. Wholesale electricity values at Energy Community locations relative to the rest of the market vary by region. The average value was often higher for wind projects (-$\$3$ to $\$11$/MWh) but lower for solar projects (-$\$6$ to 0/MWh). - Distributed solar that is owned by commercial entities is eligible for the Energy Community bonus and also, potentially, a Low-Income Community bonus. Residential solar installations in qualifying Energy Communities that are third-party owned represent about 10% of the total residential market. Larger commercial and industrial solar installations in Energy Communities make up 17% of the total market in 2023. Nearly 2 GW of distributed solar was built in areas qualifying as Low-Income Communities in 2023, exceeding the available annual program cap of 700 MW. Continued tracking of these trends will be important for system planners, investors, and local communities.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Low-Income Energy Affordability Data - LEAD Tool - 2018 Update

The Low-Income Energy Affordability Data (LEAD) Tool was created by the Better Building's Clean Energy for Low Income Communities Accelerator (CELICA) to help state and local partners understand housing and energy characteristics for the low- and moderate-income (LMI) communities they serve. The LEAD Tool provides estimated LMI household energy data based on income, energy expenditures, fuel type, housing type, and geography, which stakeholders can use to make data-driven decisions when planning for their energy goals. From the LEAD Tool website, users can also create and download customized heat-maps and charts for various geographies, housing, and energy characteristics. Datasets are available for 50 states plus Puerto Rico and Washington D.C., along with their cities, counties, and census tracts. The file below, "1. Description of Files," provides a list of all files included in this dataset. A description of the abbreviations and units used in the LEAD Tool data can be found in the file below titled "2. Data Dictionary 2018". The Low-Income Energy Affordability Data comes primarily from the 2018 U.S. Census American Community Survey 5-Year Public Use Microdata Samples and is calibrated to 2018 U.S. Energy Information Administration electric utility (Survey Form-861) and natural gas utility (Survey Form-176) data. The methodology for the LEAD Tool can viewed below (3. Methodology Document). For more information, and to access the interactive LEAD Tool platform, please visit: https://www.energy.gov/eere/slsc/low-income-energy-affordability-data-lead-tool For more information on the Better Building's Clean Energy for Low Income Communities Accelerator (CELICA), visit: https://betterbuildingsinitiative.energy.gov/accelerators/clean-energy-low-income-communities

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Low-Income Energy Affordability Data - LEAD Tool - 2022 Update

The Low-Income Energy Affordability Data (LEAD) Tool was created by the Better Building's Clean Energy for Low Income Communities Accelerator (CELICA) to help state and local partners understand housing and energy characteristics for the low- and moderate-income (LMI) communities they serve. The LEAD Tool provides estimated LMI household energy data based on income, energy expenditures, fuel type, housing type, and geography, which stakeholders can use to make data-driven decisions when planning for their energy goals. From the LEAD Tool website, users can also create and download customized heat-maps and charts for various geographies, housing, energy characteristics, and population demographics and educational attainment. Datasets are available for 50 states plus Puerto Rico and Washington D.C., along with their cities, counties, and census tracts, as well as tribal areas. The file below, "01. Description of Files," provides a list of all files included in this dataset. A description of the abbreviations and units used in the LEAD Tool data can be found in the file below titled "02. Data Dictionary 2022". A list of geographic regions used in the LEAD Tool can be found in files 04-11. The Low-Income Energy Affordability Data comes primarily from the 2022 U.S. Census American Community Survey 5-Year Public Use Microdata Samples and is calibrated to 2022 U.S. Energy Information Administration electric utility (Survey Form-861) and natural gas utility (Survey Form-176) data. The methodology for the LEAD Tool can viewed below (3. Methodology Document). For more information, and to access the interactive LEAD Tool platform, please visit the "10. LEAD Tool Platform" resource link below. For more information on the Better Building's Clean Energy for Low Income Communities Accelerator (CELICA), please visit the "11. CELICA Website" resource below.

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DC Solar for All: Implementation Plan to Scale Low- and Moderate- Income Community Solar + Storage Resilience Hubs in the District of Columbia

This implementation plan discusses the District of Columbia's strategy to combine low-income community solar projects with resilience technologies. Through the technical and financial support offered by the Inclusive Shared Solar Initiative and building on extensive stakeholder engagement in LMI neighborhoods around the District, the District of Columbia team expects to reduce energy burdens for LMI residents, address barriers to and streamline SfA program enrollment, and support the development of innovative benefit delivery models, including a community solar-supported climate resilience center.

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LA100 Equity Strategies. Chapter 1: Justice as Recognition

The LA100 Equity Strategies project synthesizes community guidance with robust research, modeling, and analysis to identify strategy options that can increase equitable outcomes in Los Angeles' clean energy transition. Grounded in the analysis of past and ongoing energy inequities and engagement with underserved communities, the project presents community-guided and community-tailored strategies that aim to operationalize recognition and procedural justice. This chapter focuses on recognition justice, identifying and analyzing past and present social, cultural, and institutional barriers to affordable and clean energy for LA communities, as well as disparities in the distribution of energy system burdens and benefits. Acknowledging historical and structural factors behind current energy inequities is a first step in developing energy equity strategies for the Los Angeles Department of Water and Power (LADWP) to achieve distributional justice - the just and equitable distribution of energy benefits and burdens in LA's energy transition. Recognition, procedural, and distributional justice are the three tenets of energy justice around which the LA100 Equity Strategies project is organized. In the United States, theory and practice around justice have historically focused on unequal distribution of environmental benefits and burdens. The historical siting of hazardous infrastructure such as power plants and transportation corridors in communities of color and low-income communities has disproportionately concentrated negative environmental impacts in their neighborhoods. Those inequities are reproduced via programs, policies, and other efforts (e.g., zoning and regulations, rebates and incentives, lending, investment, and financing) that directly affect people's lives and livelihoods. In recent decades, energy justice scholars and activists broadened their analysis to examine how environmental inequities intersect with other forms of social difference in the distribution of energy benefits and burdens. This approach investigates how differences in class, race, gender, age, and abilities, among others, intersect to understand the social, cultural, and institutional processes that create and perpetuate energy inequities. The LA100 Equity Strategies project embraces this approach to developing a more just clean energy future for LA. Because recognizing and understanding past and existing inequities is vital to addressing them in ways that ensure an equitable energy transition for all Angelenos, this chapter focuses on identifying and analyzing the challenges and inequities of LA's past and existing energy system, including LADWP programs.

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Income Verification Strategies for Income-Based Solar Programs

The Inflation Reduction Act has created substantial new programs that support adoption of solar power by low-income households, including the $7 billion Solar For All program and the Low-Income Communities Bonus Credit Program, which increases the investment tax credit for certain types of deployment. In addition, a growing number of states are using solar programs to reduce energy burdens and create energy justice opportunities for low-income households and disadvantaged communities. Verifying the income of participating customers is an important component of these programs. Program managers are seeking strategies to verify a large number of subscribing customers in an accurate, timely, and cost-efficient manner. To help inform program managers, Berkeley Lab investigated how a number of energy and non-energy programs manage income verification. The most common approach is to require proof through tax documents, pay stubs, or other formal income documentation, which can pose an impediment to enrolling eligible customers and create a paperwork burden for administrators. In order to reduce the burden for both the applicant and the program manager, some programs use alternative methods. We identify three common alternative verification methods: -Categorical eligibility: Customers enrolled in other, similar income-verified assistance programs are automatically eligible for enrollment in other income-qualified programs. -Geographic eligibility: Eligibility is based on the customer’s location within a specified area, typically a low-income or disadvantaged community or census tract, and; -“Self-attestation”: The participant claims eligibility with or without further documentation. We describe these options, their pros and cons, give examples of how they are used, and explore how some low-income programs address administrative issues, audits, or other quality control measures. Finally, we explore the risk of mistaken verifications (finding a participant eligible when they are not) in the different strategies. While this memo was initiated by a request relating to income-based community solar programs, the methods are applicable to any program with income eligibility requirements in the energy or non-energy sector. Funding was provided for this research by the Solar Energy Technologies Office of the US Department of Energy, through the National Community Solar Partnership.

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Equitable Access to Community Solar: Program Design and Subscription Considerations

Over 2.7 GWac community solar has been installed in the U.S. as of 2020, and 44% (1.2 GWac ) were installed after 2018, which indicates a fast-growing segment of the solar market .Community solar refers to a system that allows customers to subscribe part of a solar PV system and receive credit on their electricity bills based on power production. Although the growth of community solar market makes accessing solar energy easier, low and moderate income (LMI) potential subscribers may still face challenges, such as no or low credit scores.To investigate the program designs and subscription considerations for LMI customers, we provide a summary of existing state-level low-income community solar policies, as well as estimated LMI capacity and subscribers in the U.S.

41 EE - Solar Energy Technologies Office (EE-4S)↗

Active and passive cooling approaches for a Southern California residential community

This study assesses cooling strategies in a low-income community in Southern California that lacks air conditioning and struggles with heat and air pollution. We used an urban building energy model and an electric distribution system model to evaluate active and passive cooling measures. The most effective space cooling measures were high-performance air-source heat pumps, cool coatings, window films, and harnessing the space cooling effect from heat pump water heaters. The results show that combining heat pump water heaters with window films and cool coatings reduces heat index hazard hours within buildings by 95 % to 99 % but increases total energy costs (equipment costs plus changes in utility bills) by 20 % to 60 % where the higher end includes building electrical upgrades. These measures also led to increased space heater use during colder months to avoid overcooling. Replacing conventional heaters with air source heat pumps eliminated unsafe indoor temperatures and reduced total energy use, but increased cost by 125 % to 150 %. In total, using heat pumps for space and water heating could reduce primary energy use by up to 57 %. The higher cost of active and passive cooling measures can be mitigated by existing and emerging incentive programs, especially those that support heat pumps. Electric distribution upgrades to support community electrification are estimated to increase utility costs by $\$$25 to $\$$40 per ratepayer per year. The results underscore the potential and challenges of adapting building infrastructure in communities at risk from climate and environmental stressors.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗