A staggering 1 in 4 low-income U.S. households spends over 15% of their income on energy bills, according to a new report by the American Council for an Energy-Efficient Economy (ACEEE). The typical energy burden surpasses the recommended 6% threshold, with families in cities like Boston, Baltimore, and D.C. facing particularly steep costs.

The ACEEE is urging policymakers to invest in energy efficiency for low-income homes, where poor insulation and outdated systems drive up costs. Homes in these areas often suffer from air leaks and inefficient HVAC systems, further increasing bills.

Climate Change & Rising Energy Costs 

With climate change bringing more extreme weather, groups like the Natural Resources Defense Council are calling for expanded support for programs like the Low-Income Home Energy Assistance Program (LIHEAP), which remains critically underfunded despite increasing demand.

Electricity prices have surged, rising from $0.14 per kilowatt hour in 2019 to $0.18 per kilowatt hour in 2024, reflecting a 28.5% increase, according to a CBS News price tracker. The report also highlighted that the average American utility bill has now surpassed $300 per month, adding further strain to household budgets amid rising living costs.