Affordability is driving energy program innovation – and the proof is in our impact

Energy affordability is now a defining issue for customers, utilities and regulators, dominating conversations across conference tables and kitchen tables. U.S. retail electricity prices rose 9% year over year in February 2026 across all sectors, with residential ratesspecifically increasing 7.4%. This continued upward pressure is hitting household energy bills hard, at a time when 67% of U.S. households are living paycheck to paycheck. 

In response, policymakers are intensifying their focus: affordability actions have been taken across 37 states in recent years, according to RMI's Governor Affordability Agenda, reflecting the extent to which energy costs are shaping state-level priorities. 

Following a pause while Inflation Reduction Act (IRA) Home Energy Rebate programs underwent federal review, new guidance released in June 2026 is setting a pathway for billions in rebate funding to reach states – though with updated program rules, including new limitations on fuel-switching. With federal tax credits such as 25C and 25D now scaled back, these rebates are taking on greater significance as one few remaining federal pathways to improve affordability through residential energy efficiency measures. 

What is proving fascinating is how these state-led initiatives, such as IRA Home Energy Rebates, play when running alongside existing utility programs – often serving the same customers with overlapping incentives and requirements. This situation is prompting new levels of innovation among utilities, implementers, and contractors, as they rethink traditional delivery models, coordinate across programs, and create more integrated customer experiences.  

Affordability is now a central lens through which energy programs are being developed, evaluated – and redesigned. 

Start with impact: Because affordability is measurable 

What impact we can really have on people’s lives through energy efficiency? Affordability efforts have to be reflected in measurable outcomes.  

CLEAResult’s 2025 Sustainability Report illustrates that impact on an eye-widening scale: the lifestyle cumulative customer energy savings from our energy programs since 2003 is about to hit one trillion kilowatt-hours. This metric matters because the programs we deploy help not only those that participate, by lowering their bills, but also contribute to affordability more broadly by helping to keep system costs low.  

The least expensive energy remains the kWh we don't use at all. 

In addition, of course, our programs to date have saved customers money – $7.4 billion since 2003 – and reduced low-income customers’ bills by $122 million. These are the communities hardest to reach with energy program offerings, yet most affected by the affordability crisis.  

Such results establish a clear benchmark. The question now is not whether energy efficiency programs can impact affordability for customers – it is how they can continue to do so under increasing pressure and complexity. 

Pressure is reshaping program design 

Yet energy efficiency programs have come under direct pressure. Because these programs show up as line items on customer bills, they have become a visible target at a time when every number draws scrutiny. In 2025 and 2026, several states moved to cap or reduce efficiency program budgets to ease bills in the near term. But the savings these programs deliver consistently outweigh their costs, and reducing them shifts more spending to generation and infrastructure – costs that flow right back to customers. 

And so, as affordability dominates headlines, many are looking to evolve program delivery. Utilities are navigating rising demand, shifting regulatory expectations, and the need to integrate demand response, storage, and flexible load management. 

Policymakers are encouraging experimentation with grid modernization tools and demand-side solutions, while new investments in battery storage and distributed resources aim to support peak demand and long-term cost stability.  

In New York, a pilot program is testing plug-in batteries for renters’ air conditioners to enable participation in virtual power plants (VPPs) and reduce peak demand. In California, new legislation is pushing utilities to pilot VPPs, advanced rate designs, and smart grid technologies, signaling a broader move toward active experimentation. In Virginia, recent legislation is formalizing grid utilization as a key performance indicator for investor-owned utilities. 

This environment is driving a more grounded approach to innovation, with a focus on solutions that deliver measurable outcomes – particularly for customer bills. 

More innovation in practice – proof points 

This shift toward pragmatic innovation is showing up in how programs are delivered: 

• Reducing barriers to participation, including simplified processes, point-of-sale incentives, and coordination across multiple programs. 

• Scaling delivery infrastructure, such as contractor networks and support systems. 

• Focusing on outcomes that matter to customers, particularly sustained reductions in energy use and costs. 

Across North America, we are supporting programs that show how affordability and innovation can work together to deliver measurable results – particularly for income-qualified households. 

Southeast U.S.: The TVA Home Uplift Program demonstrates how innovation in program funding and delivery can expand affordability. By combining utility funding, local contributions, grants, and charitable support, the program delivers no-cost, whole-home upgrades to income-qualified households. Since 2018, it has served 6,187 homes, with $12,000 or more in upgrades per household on average, supported by $68.8 million in total funding.  

Midwest U.S.: Consumers Energy’s Healthier Homes program highlights a similar focus on serving income-qualified households through targeted program design and whole-home upgrades. The program addresses health and safety barriers while reducing energy costs and has been recognized for its focus on energy equity, particularly in improving indoor environmental conditions that impact customer health.  

British Columbia, Canada: The CleanBC Income Qualified Program reduces barriers through tiered rebates, point-of-sale incentives, and a strong contractor network, enabling low- and moderate-income households to participate without upfront costs. The program scaled from an initial goal of 800 projects per year to more than 8,000 homes served in under two years. 

From impact to expectation 

Affordability will continue to shape the energy landscape as demand grows and policy attention intensifies. Energy efficiency remains the most direct way to reduce costs for the grid and its customers – and today's pressures are pushing the industry to evolve how it delivers. As state and utility initiatives operate side by side, new models for coordination, delivery, and customer engagement are emerging, turning complexity into more integrated, scalable solutions. 

Check out the full 2025 CLEAResult Corporate Sustainability Report for more on the impact our work has on people and the planet.