How to improve equitable electrification

By Lumin grid services team

Residential electrification, or the swapping out of fossil fuel-powered appliances for electric ones, helps homeowners improve air quality and reduce carbon emissions, all while moving us closer to our climate goals. However, low-income households often face financial and structural barriers to electrification. Solving these issues will require targeted policies, accessible incentives and cost-effective innovative technology to ensure equitable participation in the energy transition.

Identifying challenges for underserved communities

Upgrading homes for modern electric systems—like heat pumps, EV chargers and energy-efficient appliances—can be expensive, especially for older homes that need major renovations. Additionally, many older or smaller homes also need utility service upgrades to handle the higher electricity use, which can add significant costs. For example, homes with under 200-amp service, often insufficient for adding new electric systems, make up an estimated 42% of U.S. households, and this figure jumps to 55% for underserved communities. These upgrades, which include costly infrastructure changes, can significantly add to the financial burden.

The high upfront costs of electrification, especially when a utility service upgrade is necessary, can be a big barrier for families already struggling with everyday expenses. While some states and utilities offer rebates and incentives, these programs are often complicated and hard to access for the people who need them the most.

Improving access

Electrification brings the opportunity for clean energy to every home, but to do that, we need policies that make getting these home improvements more affordable. Programs like those in the Inflation Reduction Act offer rebates to help low-income households switch to electric appliances and retrofit homes to be more energy efficient. These programs are currently rolling out state-by-state. See where your state stands.

Making electrification accessible for everyone means homes must be ready for new electric appliances. At the same time, the power grid must undergo significant upgrades to manage the higher energy demand. These upgrades often come with a hefty price tag, and homeowners can get stuck paying the bill.

Intelligent load management tools, like Lumin Edge, can help homeowners and utilities avoid these costly upgrades. These tools help manage energy use across multiple appliances to ensure the home stays within its electrical service capacity. When paired with demand response programs, this strategy can reduce peak demand and reward homeowners for their participation.

Driving equitable electrification

Well-designed policies and programs are essential for making electrification inclusive. They must be clearly communicated and easily accessible to benefit those who need them.

Utilities can play a key role in electrification by incentivizing customers with product rebates, rate reductions and more. These incentives, combined with demand response programs that reward voluntary energy reduction during peak hours, can help lower costs and support grid resilience.

Intelligent load management solutions like Lumin Edge further enhance demand response programs by enabling homeowners to enroll multiple appliances, receive push notifications for upcoming events and opt out of events with individual appliances. This gives homeowners more visibility and control over their energy use, increasing the likelihood of program participation.

Looking forward

For electrification to succeed, we must prioritize underserved communities. Inclusive policies, financial support and affordable infrastructure solutions can help ensure that everyone can participate, regardless of income or location.

At Lumin, we’re committed to making electrification accessible for all. Our solutions help homeowners and utilities manage energy more effectively and affordably, supporting a more inclusive clean energy transition.

Download our report, The Electrification Challenge, for a deeper look into the key challenges and solutions needed for widespread electrification and how we can make the energy transition work for everyone.