This toolkit aims to equip program administrators with essential resources and guidance to facilitate the design, development, and implementation of effective heat pump programs designed for low-income customers. The resources included in this toolkit aim to provide support related to various tasks in the process, such as determining program requirements, identifying sources of funding, developing effective communication strategies, providing customer support, and more.
This toolkit is not intended to serve as a detailed, step-by-step manual for energy efficiency program creation—which involves navigating complexities such as cost-benefit analyses, regulatory compliance, technical feasibility, and more. Rather, the toolkit offers valuable resources to support administrators through various phases of the design, development, and implementation of low-income heat pump programs.
Administrators are encouraged to adapt and share these materials to meet the unique needs of their programs and communities.
Jump to: Preliminary Research | Program Design | Communication Strategy | Program Delivery | Evaluation & Refinement
Level Setting: Low Income Market Segment
Before exploring the various sections of this toolkit, it’s crucial to first define low-income households—those earning less than 80% of the area median income (AMI)—and the specific challenges they encounter.
Historically, low-income households have had limited access to energy efficiency services compared to wealthier communities. Discriminatory practices like redlining and disinvestment have contributed to this disparity, often leaving low-income communities in older, less energy-efficient homes. These homes tend to have poor insulation, outdated appliances, and structural issues that result in higher energy consumption. Renters in these communities, who may have less control over their housing quality than homeowners, often face even greater challenges. Consequently, low-income households spend a disproportionate share of their income on energy bills, forcing difficult choices between essential needs such as food, medicine, and heating or cooling.
To address these inequities, many utilities, local governments, and energy efficiency program administrators are working to increase access to energy-saving services. These programs often focus on structural improvements, such as enhanced insulation and air sealing, more efficient appliances, efficient heating and cooling systems like heat pumps, and advanced thermostats to name a few. Often funded through utility customer bills and supported by programs like the Department of Energy’s Weatherization Assistance Program, these initiatives aim to reduce energy consumption in low-income households.
State legislatures and public utility commissions in many areas mandate that investor-owned utilities offer energy efficiency programs for low-income residents. Some states have also implemented alternative cost-effectiveness criteria to recognize the broader benefits these programs offer.
However, low-income households face unique challenges particularly when adopting heat pump systems. Financial barriers, inadequate housing conditions, and information gaps can make it difficult for these households to invest in heat pumps, even with available incentives. Additionally, many low-income homes may need significant energy efficiency upgrades before heat pumps can be effectively installed. Trust issues and a lack of accessible information, particularly among historically marginalized communities, further hinder adoption. Language barriers and limited digital access also contribute to these challenges.
A comprehensive approach is necessary to overcome these obstacles. Integrating heat pump installations with broader energy efficiency measures, such as weatherization, can maximize benefits. Collaborating with community-based organizations and housing authorities can help build trust and ensure that programs are accessible and responsive to community needs. Flexible financing options, like on-bill financing or low-interest loans, can reduce upfront costs. Effective communication strategies that use clear, accessible language and leverage trusted community networks are essential for raising awareness. Additionally, training contractors and program staff on the specific needs of low-income households is crucial for delivering effective and empathetic services. Successful programs demonstrate that community engagement, streamlined processes, pilot initiatives, and long-term support are vital for overcoming barriers and achieving lasting benefits for low-income participants.
In the different sections of this toolkit, we will provide resources and guidance to support administrators through various phases of the design, development, and implementation of low-income heat pump programs. Click on the title below to go to that section page.
Preliminary Research | Program Design | Communication Strategy | Program Delivery | Evaluation & Refinement