Energy Poverty in Michigan
In Michigan, a large percentage of households face energy poverty. From energy inefficiencies raising bills to the high cost of living, there are a number of causes and impacts.
Unfortunately, energy poverty leads to families having to make difficult decisions. Deciding between whether to keep your family warm or feed them is an issue too many face. Learn more about energy poverty, its causes and impacts and how you can help our neighbors in need by reading below.
What is Energy Poverty?
As the term itself describes, energy poverty refers to a household’s lack of access to dependable energy services to maintain a healthy standard of living, as Habitat for Humanity describes in their article, What is Energy Poverty?. They go on to describe the energy services needed for living: “adequate heating, hot water, cooling, lighting and the energy to power appliances.” Having access to these energy services is vital to households’ health and well-being.
A household’s energy burden also contributes to whether or not they experience energy poverty. According to the U.S. Department of Energy, energy burden is “the percentage of gross household income spent on energy costs.” This percentage can be found by “dividing the average housing energy cost by the average annual household income.” Having a 6% or greater energy burden classifies households as having a high energy burden, as the U.S Department of Energy describes.
Each household has different experiences with energy poverty. However, there are common causes that lead to high energy burden. Plus, with costs continuing to rise, households face numerous challenges to afford the energy they need to live and thrive.
Energy Poverty Causes
Energy poverty has a number of causes. Having a high energy burden is one of the most common causes as there are a number of factors that can contribute. From homes being energy inefficient to socioeconomic challenges, there are multiple ways a household’s energy burden can increase.
Inefficiencies that Create a High Energy Burden
Homes with energy inefficiencies will have a higher energy burden than those that do not. Older homes that have poor insulation or old heating and cooling systems will use more energy than necessary because of these issues.
Inefficient appliances can also contribute to a high energy burden. These appliances need more energy to function than efficient ones. Unfortunately, low-income households typically cannot afford the most efficient appliances. Having efficient appliances being inaccessible to those who need them most contributes to the high energy burdens seen in Michigan.
Socioeconomic Challenges
Social and economic challenges can also create a high energy burden. According to Ariel Drehobl, Lauren Ross and Roxana Ayala in their article, How High Are Household Energy Burdens? An Assessment of National and Metropolitan Energy Burden across the United States, low-income households typically spend a higher percentage of their income on energy bills than high-income households. This is due to low-income households having to use the appliances they can afford. Unfortunately, these tend to be inefficient and use large amounts of energy. In contrast, while high-income households typically use large amounts of energy, they have more efficient appliances and won’t spend as high of a percentage of their income on energy bills. Energy burdens like this are more common for rural households, older adults and families with children as Drehobl, Ross and Ayala note in their article.
High-cost fuels such as propane, which is commonly used in rural areas, can also contribute to a high energy burden. For low-income households, having this high cost to keep their family safe and warm can create difficult decisions. No one should have to decide whether to keep their lights on or fix a car to be able to get to work. Unfortunately, this happens all too often.
Renter Challenges
Renters face unique energy challenges as well. According to the Michigan Statewide Housing Needs Assessment by the University of Michigan and Michigan State Housing Development Authority (MSHDA), a large percentage of renters in 2022 had a high housing cost burden. Findings from the study show that “51% of renters were housing cost-burdened (spending more than 30% of income on housing) and 26% were severely housing cost-burdened (spending more than half of income on housing).” When renters are already spending more of their income on housing, that leaves less for other necessities such as food and energy. Plus, landlords ultimately decide on rental updates and need to have buy-in to make their units more energy efficient. This is another barrier for low-income renters as potential savings on energy bills are unavailable because they cannot make those energy efficiency upgrades themselves, as the U.S. Department of Energy describes.
Rural Challenges
Rural Michigan communities face additional energy challenges. As seen above, home energy inefficiencies are a major cause of a high energy burden. Unfortunately, this is prominent in rural areas. People live in places such as mobile homes and old farmhouses that are not equipped for healthy living. But, because these are the places they can afford, they suffer higher energy costs because of these energy inefficiencies.
Overall, there are a number of factors that contribute to a high energy burden that often leads to energy poverty. Keep reading to learn more about the impacts energy poverty has on our neighbors in Michigan.
Impacts
Energy poverty impacts the well-being of those experiencing it. From physical health detriments to poor mental health, there are numerous effects.
Physical Health Effects
A high percentage of households experiencing energy poverty live in unhealthy housing as Drehobl, Ross and Ayala discuss in their article. They go on to describe how “inefficient housing is associated with other health impacts, such as carbon monoxide poisoning, lead exposure, thermal discomfort, and respiratory problems such as asthma and chronic obstructive pulmonary disease (COPD); it is also associated with the potential for hypothermia and/or heat stress resulting from leaky and/or unrepaired heating and cooling equipment.” While these health effects are not all directly caused by energy poverty, many who have high energy burdens also may experience these health risks as well, ultimately contributing to their poor well-being.
Energy coping strategies can also contribute to negative health risks. Using additional heating sources such as stoves, ovens and space heaters can create safety risks and make residents uncomfortable as Drehobl, Ross and Ayala describe in their article. These coping strategies do not help lessen bills, so while they can help keep residents warm, their bills will remain unmanageable without the right support. No one should have to rely on these measures to keep warm, and because of these experiences, many suffer from poor mental health.
Mental Health Effects
Chronic stress, anxiety and depression can result from energy poverty. Drehobl, Ross and Ayala discuss in their article how the fear and uncertainty of not having dependable, affordable energy can negatively impact mental health. Navigating assistance programs can also be challenging, especially when people are still trying to keep their lights on, take care of their family and get the help they need. Thankfully, there are resources to help those experiencing energy poverty that will also guide people throughout the process, so they can receive the help they need to move forward.
Energy Poverty Assistance
There are a number of ways to help households become energy secure. While each situation is different, there are resources available to help those facing various challenges.
Programs like TrueNorth’s emPower program and assistance programs such as LIHEAP (Low Income Home Energy Assistance Program), WAP (Weatherization Assistance Program) and MEAP (Michigan Energy Assistance Program) are available to assist people experiencing energy poverty and high energy burdens. Take a look at the Coalition to Keep Michigan Warm’s fact sheet on energy assistance to learn more about the available resources.
Legislation impacts the amount of assistance available to those experiencing energy poverty. There are three Senate bills that propose updates to MEAP, as the Coalition to Keep Michigan Warm outlines their potential impacts:
- Senate Bill 353: This bill proposes to “expand eligibility and streamline operations.” SB 353 would expand the income qualifications to assist more households and bring structural improvements that will lessen administrative burdens.
- Senate Bill 880: This bill proposes to “increase annual funding and promote statewide reach.” SB 880 would allow the Michigan Public Service Commission to “increase the amount of assistance funding collected on an annual basis,” helping more households and providing more flexibility for “all electric providers to participate in the delivery of assistance funding through MEAP.”
- Senate Bill 881: This bill proposes to “ensure equitable access to funding.” SB 881 would require that the assistance funds would be used in the area where they were collected, ensuring everyone has access to energy assistance.
Being aware of these proposed policy reforms is one of the ways you can help those experiencing energy poverty in Michigan. For more information on these bills and assistance programs, go to the Coalition to Keep Michigan Warm’s website.
How to Help End Energy Poverty in Michigan
TrueNorth Community Services strives to keep Michigan communities safe and warm while guiding our neighbors on their paths to self-sufficiency. You can ensure our neighbors are equipped to remain energy secure. There are numerous ways you can get involved and make a lasting impact.
TrueNorth’s Initiatives
At TrueNorth, we meet our neighbors where they are. No one should have to decide whether to keep their family warm or afford another necessity.
TrueNorth’s emPower Division Director, Marissa Boerman, describes the realities of participants who experience energy poverty: “The unfortunate reality is that many of our neighbors are unsure if they will have electric or heat when they get home because there is just not enough money to pay all the bills. Our neighbors are having to make decisions with significant health and safety impacts–pay the heat bill or fix their car so they can continue to go to work to earn an income or put food on their table. This is energy poverty–unaffordable bills, the risk of electric and heat shut off or inability to obtain deliverable fuels, and having to cut significant comfort and safety corners in an effort to afford or maintain utility service.”
To meet this need, TrueNorth’s emPower program provides heat and energy assistance for the entire state of Michigan. We help provide direct-assistance payments and enroll participants in affordable payment plans to help people get back on their feet. Participants can receive assistance with electric, natural gas, propane, wood, pellets, fuel oil, coal and other fuels.
emPower also emphasizes self-sufficiency as we walk alongside those in need and guide them on their paths to resilience. The purpose of emPower’s Self-Sufficiency Program is to help participants and their families improve their financial health and quality of life. TrueNorth Self-Sufficiency advisors will meet with their participants to set goals in areas such as improving credit scores, budgeting, enrolling in educational programs, finding employment among numerous others. In doing so, we can equip participants to move forward after they complete the program.
emPower Impacts
In the past grant year, running from October 1, 2023 to September 30, 2024, we have served 8,350 households by direct assistance. See more impacts below:
- Number of Applications Received: 8,584
- Number of Heat and Energy Calls Received: 24,653
- Number of Households Enrolled in an Affordable Payment Plan: 1,789
- Number of Emergency Cases Serviced: 56
- Number of Resource Referrals Made: 6,632
- Number of Long-Term Participant Centered Goals that Were Achieved: 142
These numbers show a small part of the impact these services have on participants’ lives. But, for people like Donna, receiving this hand up can be life-changing. “I am looking so forward to actually getting back to what anybody else would call a normal life,” says Donna when reflecting on how the program has impacted her. “One that’s not directed by constant medical visits and the total worries.” With support from caring people like you, people just like Donna can receive the support they need to improve their lives. Donna with her Self-Sufficiency advisor.
How You Can Make a Difference
You can secure the well-being of our community. Whether you donate, volunteer or advocate for those in need, you can be confident you are building vibrant communities throughout Michigan. Together, we can keep our neighbors in need healthy, safe and warm as they further themselves on their paths to resilience.