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Energy Affordability 101

What Is Energy Burden? The Metric Utilities Don't Advertise

Direct answer: Energy burden is the percentage of a household's gross income spent on energy costs (electricity plus heating fuel); the U.S. Department of Energy considers 6% or more a 'high energy burden' and 10% or more a 'severe energy burden.'

Quick Answers

How do I calculate my own energy burden?

Divide your annual electricity and heating fuel costs by your gross annual household income, then multiply by 100.

What's a typical energy burden in the U.S.?

Low-income households average 8.6% nationally, versus about 2% for non-low-income households, according to DOE's LEAD Tool.

Does energy burden include gasoline for a car?

No. DOE's standard energy burden metric covers home energy (electricity and heating fuels) only; combined home-and-transportation burden is tracked separately by ACEEE.

The formula

Energy burden = (annual electricity cost + annual heating fuel cost) ÷ gross annual household income × 100. It's intentionally simple — the goal is comparability across very different households.

Why 6% is the line

The 6% threshold traces back to the assumption that an affordable housing budget spends no more than 30% of income on housing, and about 20% of that housing budget — 6% of total income — on energy specifically.

Where the U.S. actually stands

A quarter of all U.S. households, and two-thirds of low-income households, currently carry a high energy burden by this definition, and two in five low-income households carry a severe burden above 10%.

Want to see where you personally stand? Check your own CCM Energy Score, free and takes under a minute.

Sources

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