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A clean-energy revolution is upon us, as cost-saving solar power and other green technologies become more widely available. But not everyone can take advantage of these upgrades. Low- and moderate-income families may not be able to afford the upfront cost of solar panels or energy efficiency improvements that would save them money in the long run.
The good news is that the Biden administration’s Inflation Reduction Act and bipartisan infrastructure law are directing billions of dollars to climate efforts in cities and states, with much of the funding intended to benefit low- and moderate-income households. While this presents an enormous opportunity for low-income communities and communities of color across the U.S., the choices cities make about spending these funds will determine whether these investments are actually equitable.
The American Council for an Energy-Efficient Economy’s new 2024 City Clean Energy Scorecard shows that most cities have yet to translate their energy equity goals into specific policies. But it also reveals that a few cities are taking practical steps to ensure their clean energy investments benefit those left behind by the energy transition.
Affordable electrification in Washington, D.C.
For too long, people in disadvantaged communities have had to navigate a maze of different requirements and applications to take advantage of the clean energy programs intended for them. Washington, D.C. shows how it is possible to design these programs in ways that are more accessible for low-income households.
The district’s Affordable Home Electrification program offers no-cost electrification upgrades for low-income homeowners and renters. Recognizing that these improvements might raise energy costs for those who are already struggling to keep up with their bills, the city pairs this program with its Solar for All initiative, enabling electrification program participants to either install solar on their home or sign up for community solar to reduce their electricity bill.
Green careers in Seattle
The federal government is set to make roughly $1 trillion in clean energy investments over the next 10 years. Such a large investment requires an equally large skilled workforce to carry out the projects initiated with this funding, and many communities are realizing that they lack the workers they’ll need for these projects.
While workforce development initiatives are sorely needed, it is also critical that these programs encourage more people of color and women to pursue clean energy careers, as they have historically been left out of these job opportunities.
Seattle is showing how this can be done. The city partners with Sphere Solar Energy, a minority-owned business that is committed to complying with local union guidelines, to launch the Clean Energy Career Pathway program.
Facilitated by a diverse staff, the program fosters inclusion while providing interactive, hands-on experience learning about clean energy components, system assembly and electricity fundamentals, as well as career support on pathways to the trades — particularly electrical apprenticeships. The city tracks the number of participants and graduates from the program as well as the companies that hire each graduate.
Tracking equity in Nashville
The influx of federal funding can help cities rebuild relationships with disadvantaged groups and communities — but only if they can transparently demonstrate that they are implementing programs equitably. This means that they will need to continually track their work and its impacts, sharing that information with all residents.
Nashville provides an example of how to do just that. The city’s annual budgeting process requires each department to complete a budget equity evaluation that documents how department expenses and activities will further diversity, equity, and inclusion throughout their department and the community.
The city’s public utility also collects data on its incentive and financing programs to understand participation rates and allocation of program benefits among disadvantaged communities.
Next steps for cities
As cities launch new federally-funded clean energy programs, they can take away three key lessons from these local examples.
First, cities should ensure that new clean energy incentive and financing programs are streamlined to provide participants with an easy-to-navigate application process and access to multiple incentives through a single point of contact.
Second, cities shouldn’t go it alone in their workforce development initiatives. Instead, they should form community partnerships in launching new workforce development programs for potential or existing workers from disadvantaged communities, making sure to track and report the outcomes of these initiatives along the way.
Finally, cities should require that all new clean energy programs undergo an equity evaluation. They should collect data assessing the allocation of program benefits among disadvantaged communities and then share the data with the public.
The clean energy revolution is here, and federal funding is available to make it happen. But it’s up to cities to ensure clean energy’s benefits reach those who need it most.