Using Federal Energy Assistance Funds for PV to Reduce Energy Burden for Low-Income Households

Though the rapid decline in the cost of solar has resulted in unprecedented levels of solar deployment across the country, the majority of residential solar installations have been in middle-to-affluent households. Also, federal energy assistance programs have traditionally focused on weatherization with energy efficiency measures or bill assistance. Coupled with innovative financing mechanisms, solar photovoltaics (PV) now present another attractive option for helping low-income households reduce their energy burden. Seizing this opportunity, several states have undertaken efforts to include solar investments in Department of Health and Human Services' Low-Income Heating and Energy Assistance Program (LIHEAP) and the Department of Energy's Weatherization Assistance Program (WAP) funded projects. To support these state initiatives, DOE's WAP and the Solar Energy Technologies Office (SETO) have been collaborating with the National Renewable Energy Laboratory (NREL) to provide states with additional guidance and technical support to gain approval to use WAP funds for PV. Early examples of states demonstrating cost effectiveness of PV within Colorado and New York state SETO and NREL have also begun exploring how established solar business models could align with the LIHEAP utility assistance model.