As clean energy technologies continue to advance, both residential and commercial consumers become curious about how to tap into the economic and environmental benefits that these energy sources provide. Increasing energy costs can discourage economic development and deter manufacturers and large-scale industries that would otherwise bring an influx of employment opportunities to the area. It is important for energy consumers, large and small, to look inward to analyze how clean energy can benefit the consumer and then turn to implementing solutions that cater to specific needs.

This article is the first in a series of clean energy affordability topics. The residential aspect of affordability will be discussed in this piece, with future discussions focused on commercial energy users looking to save costs.

There are many programs at the federal and state levels that are intended to make clean energy more affordable and accessible by providing tax incentives or financial assistance to individuals and businesses. However, when it comes to realizing these benefits in residential areas, the conversation begins with energy efficiency and weatherization efforts.

The Center for Energy Education (C4EE) is a nonprofit organization based in North Carolina that works to promote renewable energy initiatives by providing education about the various technologies available and the potential for economic growth and workforce development that come from clean energy sources.

Community Outreach Manager for C4EE, Reginald Bynum, Jr., emphasizes the importance of evaluating home energy efficiency at the residential level. In rural areas like Roanoke Rapids, NC, where C4EE is based, there are sometimes ordinances that complicate or block clean energy options like rooftop solar. As many homes in that area were originally built in the 1960s, their residents face a high energy burden due to older construction practices. A household’s energy burden depends on the percentage of a resident’s income that is spent on energy costs. In low-income areas, many residents have a high energy burden. He says, “energy burden is where it starts; the way we have to dissect that is through weatherization opportunities and programs.”

Bynum works to create educational opportunities and workshops for adults and science camps for kids that support residents’ knowledge of solar energy and other renewable sources, as it will be important to train individuals on utilizing new technologies in order for the community to reap the benefits. C4EE is applying for grants for a clean energy workforce lab, which they intend to start in the coming years. Bynum aims to have a weatherization manager that can train the workforce, which will then be able to service homes within the community.

Currently, the North Carolina Department of Environmental Quality (NCDEQ) administers the Weatherization Assistance Program in North Carolina, which is funded annually by the United States Department of Energy (DOE). NCDEQ’s program offers repairs and upgrades at no cost to residents who are eligible. Individuals can qualify if they are an owner or renter, have a gross income at or below 200 percent of the federal poverty guidelines, or receive assistance payments under Work First or Supplemental Security. Weatherization upgrades can include adding ventilation and insulation, installing energy efficient lights and pipe insulation, sealing air infiltration sites, and tuning or repairing heating equipment.

There are many other home energy efficiency programs available to individuals that can be based on a number of factors including income, location, and equipment systems.

The Low Income Energy Assistance (LIEAP) program is federally funded and provides a one-time vendor payment for eligible homes to pay heating bills. Eligible households must meet an income test, have reserves at or below $2,250, and are responsible for the household’s heating costs. Additional information about the program can be found by contacting the local Department of Social Services.

There are several types of Energy Efficient Mortgages (EEMs) available that can be used to refinance an already existing energy efficient home, or to fund energy efficient improvements. Conventional EEMs include Fannie Mae’s HomeStyle Energy mortgage and Freddie Mac’s GreenCHOICE Mortgage. The Fannie Mae mortgage provides loans for upgrades that will reduce utility costs and increase home safety. The funds can also be used to pay off existing energy debt. The GreenCHOICE Mortgage is intended for borrowers who are looking to finance the cost of energy efficiency improvements and have lower utility costs. The Federal Housing Administration (FHA) has an EMM program that finances a borrower’s energy efficient improvements and is available for both site-built and manufactured homes. FHA also has a specific weatherization policy that allows borrowers to finance up to $3,500 to pay for weatherization improvements like insulation and thermostats. The U.S. Department of Veterans Affairs (VA) EEM provides loans to cover improvements such as solar heating systems, caulking and weather-stripping, insulation, and furnace modifications. More information about the VA EEM can be found here.

Federal tax credits are also available for various energy efficiency appliances and onsite renewables generation. The Energy Efficient Home Improvement Credit provides a tax credit up to $3,200 for home energy-efficient improvements that were implemented after January 1, 2023. This credit can be claimed for improvements made through 2032. Improvements include residential energy property and home energy audits, along with qualified energy efficiency installations. Those eligible for the credit must have a primary residence located in the United States, and the residence must be an existing home, rather than a new home.

Duke Energy has several residential rebate programs as well. Duke Energy Progress provides incentives for certain heating and cooling systems, duct and air sealing, and heat pump water heaters. To qualify, customers need to use a contractor approved by Progress Energy and must submit an application form within 60 days of completion of the work. The incentives for each type of energy efficiency work can be found here, in the Database of State Incentives for Renewables and Efficiency (DSIRE). Duke Energy also has a PowerPair program that provides incentives for those who install residential solar photovoltaic (PV) plus storage systems. The incentive is upfront and based on the size of the PV and battery system and can provide up to $9,000. Duke Energy’s Improve & Save Program allows homeowners and renters to receive energy efficiency improvements by scheduling an energy audit with an approved third-party contractor. The recommended improvements can include new HVAC systems, duct sealing, and attic insulation. Duke Energy will fund the equipment up front and will apply existing rebates where applicable. The remaining balance is repaid over 10 years through the property’s electric bill.

NCCETC looks forward to a new program, Solar for All, that is expected to begin in January 2025. The U.S. Environmental Protection Agency (EPA) announced $7 billion in awards for the Solar for All program on April 22, 2024. The funding is part of the $27 billion Greenhouse Gas Reduction Fund through the Inflation Reduction Act. This program will be one of the largest initiatives that will expand access to residential and community solar in low-income and disadvantaged communities across the United States. Four organizations known as the EnergizeNC coalition spearhead the program. The coalition is led by the North Carolina Department of Environmental Quality State Energy Office, and includes North Carolina Advanced Energy, the North Carolina Clean Energy Technology Center (NCCETC), and the North Carolina Clean Energy Fund.

Clean energy affordability has many aspects, and the Center continues to work diligently to identify rebate programs, incentives, and grant funding that will work toward benefiting both residential and commercial consumers.