INDIANAPOLIS -- One in four U.S. households faces a high energy-cost burden, and it's a hardship that a new report finds disproportionately affects certain demographics.

The analysis from the American Council for an Energy-Efficient Economy showed that low-income households, communities of color, renters and older adults are groups that all pay a much larger share of their income on energy bills. Specifically, said lead report author Ariel Drehobl, a senior research associate for the council, Black, Indigenous and other people of color have seen limited access to energy-efficient and healthy housing.

"Some systemic policies -- such as racial segregation, high unemployment, high poverty rates -- have led to a lack of access to mortgages or loans, which can help to make energy-efficiency investments in homes," she said.

Indiana is among the five states in the report's East North Central Region, where 29% of all households experience a high energy burden. Some 37% of renters, 43% of Black households and 75% of low-income households in the region spend more than 6% of their income on energy bills, compared with the 3.6% paid by the median household.

Drehobl said the data is from 2017, when many people in these groups already were struggling to afford utility bills. With the nation on the brink of a recession due to COVID-19, she said, these households now may be seeing job losses and reduced income -- at the same time their energy costs are higher because of stay-at-home orders.

"Now is a time to think about how to support people in the short term," she said, "while also thinking in the long term of how to help communities be more efficient, more resilient through policies that make access to energy efficiency, access to clean energy, more equitable."

The report encouraged investments in energy efficiency, including more federal funding for the Weatherization Assistance Program and the Low-Income Home Energy Assistance Program. Drehobl said local and state governments and utility companies should direct their energy-efficiency and renewable-energy investments to disadvantaged communities.

The report is online at aceee.org.


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Minnesota is a leader in renewable energy - getting 54% of its electricity from zero-carbon sources last year, according to the 2024 Minnesota Energy Factsheet released today. The annual report comes from Clean Energy Economy Minnesota and the Business Council for Sustainable Energy.

Amelia Cerling-Hennes, managing director of public affairs with Clean Energy Economy Minnesota, said that's 12% better than the national average.

"We're really pleased to see about 600 megawatts of wind and solar getting added, and we're anticipating that that's going to be even higher next year as some of the large utility-scale projects that are being built right now kind of come online," she said.

Carbon emissions from the power sector also dropped 54% in 2023 with the retirement of part of the Sherco coal-fired power plant. Electric vehicle registrations went up 55%. Last year, Minnesota-based Cummins began shipping electrolyzers, which generate energy from hydrogen.

Andy Kim, president of the civil engineering firm EVS in Eden Prairie, said battery storage will be increasingly paired with large-scale solar projects in the future.

"You get uninterrupted power, you improve grid stability, and ultimately, it will lead to cost savings. And we see battery storage on at least half of our projects right now. And I would not be surprised if within the next two years, we see it on 80-90% of our projects," Kim said.

Cerling-Hennes adds the state made big strides policy-wise in 2023.

"So much happened last year, starting with passing 100% clean energy by 2040. And then following that up with a really historic energy omnibus bill. We created the Minnesota Climate Innovation Finance Authority. We funded high-voltage transmission," she said.

Tara Narayanan, lead analyst for North American regional trends with Bloomberg New Energy Finance, said energy efficiency is working - electricity consumption went down even as productivity went up. However, she notes that we need to ramp up the clean-energy transition even faster if we are to meet the goals set by the Paris Accords.

"Compare where we are going against where the U.S. has committed to go, we're really not on track. We're really going to have to make dramatic efforts in order to get to where we had committed to be in 2013," Narayanan said.

The state got $800 million in climate funding from President Joe Biden's infrastructure bill and the Inflation Reduction Act.


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New federal funding aims to revolutionize solar energy access within New Mexico's Native American communities and benefit the state overall.

The Environmental Protection Agency's $7 billion "Solar for All" program is designed to create new or expanded low-income solar programs.

Talia Martin, co-executive director of the National Tribal Program for GRID Alternatives, said the funding will help bridge the clean energy gap in Native American communities.

"In New Mexico, tangible impacts would be for household savings," Martin explained. "Which means working directly with the tribes to ensure that the savings are going to individual households as well as to the community as a whole."

According to Martin, the $62 million EPA grant awarded to the GRID Tribal Program is its largest ever. Nationwide, the agency's program is set to help at least 4,700 households in Native American communities. Across the U.S., the EPA said the program will enable more than 900,000 low-income households and disadvantaged communities to benefit from distributed solar energy.

Martin emphasized the program will allow GRID to help bolster solar storage capabilities and implement essential upgrades, while at the same time advancing their mission to support the self-determined efforts of Native American tribes to deploy clean energy on tribal lands, arguing it will be important to recruit contractors who understand the needs of tribal communities they're working with.

"It's an amazing window for Indian Country to be involved in energy development," Martin pointed out. "We want to just help foster all these relationships that it is going to take to do that."

The state of New Mexico also received a grant of $156 million from the program to overcome existing barriers to widespread adoption of distributed solar generation. In addition to the federal money for solar, Array Technologies announced last week it will build a new $50 million solar manufacturing campus near Albuquerque.

A round of public testimony wrapped up this week as part of renewed efforts by a company seeking permit approval in North Dakota for an underground pipeline carrying carbon emissions. Economic benefits were again touted but the plan still has opponents.

Last year, North Dakota's Public Service Commission denied a permit request from Summit Carbon Solutions, which wants to build a maze of pipelines in several Midwestern states. Emissions from ethanol plants would be captured for underground storage in North Dakota.

Skott Skokos, executive director of the Dakota Resource Council, said they remain unconvinced it would be a worthwhile project.

"It felt like déjà vu," Skokos observed. "I don't think Summit did anything to relax the concerns of the public."

Company officials have submitted a new application with a revised route as they try to ease concerns about safety and landowner rights. During comment periods, Summit leaders and other speakers discussed how the project would provide economic boosts, including corn prices. However, skeptics restated their concerns about potential ruptures and lasting negative effects on the landscape.

Skokos pointed out large carbon-capture projects like these have yet to prove themselves, noting smaller initiatives are not as likely to rile up opponents. He pointed to the Red Trail ethanol plant in North Dakota.

"They're storing it, basically, almost on-site, next to the facility and they're not affecting a bunch of landowners in the process," Skokos emphasized.

The Summit regulatory case has two upcoming public hearings in North Dakota, one scheduled for May 24 and the other on June 4. The company has run into similar opposition and permitting headwinds in other states, including South Dakota.