Understanding New York’s Low- to Moderate Income Market Segment LIFE 2018 Statewide Conference May 2018

Low- to Moderate-Income (LMI) Market Characterization Study Objectives Characterize Population of LMI Households at the State, Regional, and Local Level Estimate Penetration Rates of Existing LMI Energy Efficiency Programs Identify Opportunities for Engagement with REV Initiatives Increase Accessibility with Public Database and Special Topic Reports The study furnished quantitative data needed by partners to plan and implement effective programs. 2

Low- to Moderate-Income (LMI) Market Characterization Study Outputs Executive Summary – Gives you the most important findings from the study. Characterization Report – Furnishes the details needed to see how we developed the key findings. Special Topic Reports – Dig more deeply into important topics: Energy Burden, Financial Capacity, Income Guidelines, and Market Segmentation. Methodology Reports – Document sources and allow for replication. LMI Census Population Analysis Tool – Goes beyond American FactFinder / special variables. 3

LMI Income and Demographics LMI vs. Non-LMI – Who is counted as LMI with the NYSERDA definition? LMI Sub-Groups – Within the LMI populations, what are important subgroups and why? Income – What is the annual income distribution for these households? Demographic “Life Stage” Analysis – Indicator that might characterize household’s current “investment status.” 4

NYSERDA Definition of NYS Low- to Moderate-Income Households LMI limit = Greater of 80% of SMI and 80% of AMI 5

Low- to Moderate Income Sub-Groups Very Low = <=130% FPL, Low = 130% to 60% SMI, Moderate = GT 60% of SMI 6

Low- to Moderate-Income by Income 7

Low- to Moderate Income – Life Stage Elderly = 60+ / Older = 40-60 / Younger = 18-40

LMI Housing Characteristics Owner vs. Renter – What share of LMI households are owners within population subgroups? Housing Unit Types – If you are targeting a certain income group, what kind of housing units do you need to be prepared to serve? Other Information – Housing unit size, main heating fuel, direct payment vs. heat in rent. 9

Low- to Moderate-Income – Owner/Renter 10

Low- to Moderate-Income – Type of Housing Single Family, Small Multifamily, Large Multifamily, Mobile Home 11

LMI Financial Capacity Energy Burden – How does gross energy burden compare to targets? [Gross burden is energy burden prior to receipt of energy assistance.] Shelter Burden – What share of their income are LMI households already paying for shelter? Banking Status – Are LMI households able to use traditional financial tools? Home Equity – What percent of LMI households have equity in their homes? 12

Low- to Moderate Income – Energy Burden 13

Low- to Moderate Income – Shelter Burden 14

LMI Financial Capacity Indicators Shelter Burden – One third of LMI households have shelter burden of less than 30% of Income. Banking Status – One half of LMI households are “fully banked” … have a bank account and do not use non-traditional lending sources. Home Equity – More than 40% of LMI households are homeowners who have equity in their homes? 15

LMI Energy Savings Potential Heating Fuels – What is the energy savings potential for LMI households from weatherization measures? Electricity – What is the energy savings potential for LMI households from electric energy efficiency measures? 16

LMI Energy Savings Potential – Heating Fuels and Weatherization Energy Used for Heating – LMI single family homes are 20% smaller than those of non-LMI households, but use the same amount of energy for space heating. Energy Savings Potential – Research has shown that homes with higher energy usage have higher savings, higher percentage savings, and more cost-effective savings. 17

LMI Energy Savings Potential – Electric Energy Efficiency Programs Use of Electricity – LMI single family homes use about 15% less electricity than non-LMI households. But they have older appliances and lower installation rates for energy efficient lighting. Energy Savings Potential – With higher savings values per measure, lower free-ridership rates, and lower market acquisition costs, LMI households represent a good target for electric energy efficiency programs. 18

LMI Market Segmentation – Type of Housing and Ownership Status Low Income Renter Moderate Income Renter Low Income Owner Moderate Income Owner Multifamily Homes (5+) 28% 10% 2% Single Family Homes (1-4) 18% 6% 17% 14% Mobile Homes 3% 19

LMI Market Segmentation – Percent Served by Energy Efficiency Programs Low Income Renter Moderate Income Renter Low Income Owner Moderate Income Owner Multifamily Homes (5+) 17% served by WAP and EmPower 16% served by MPP program Unknown Single Family Homes (1-4) 6% served by WAP and EmPower Eligible for Assisted Home Performance 18% served by WAP and EmPower 6% served by Assisted Home Performance Mobile Homes 25% by WAP and EmPower 20

LMI Market Segmentation – Type of Housing and Ownership Status Low Income Renter Moderate Income Renter Low Income Owner Moderate Income Owner Multifamily Homes (5+) 28% 10% Unknown Single Family Homes (1-4) 18% 6% 17% 14% Mobile Homes Less than 3% 21

Findings and Recommendations Existing Programs – Ensure that homes are getting ALL available services when they are served. Program Gaps – Research is needed to determine the best ways to engage two important market segments … Low-Income Single Family Rental and Moderate-Income Single Family Owner. Information Resources – Figure out an effective way to share information on income-eligible and participating households. 22

Strategies for Existing Programs WAP/Empower – Analysis found co-delivery, sequential delivery, and no overlap. Detailed analysis of geographic and demographic patterns? Follow-up research? WAP/EmPower/LIHEAP – Discussion in LIHEAP session of linkage from Equipment Repair and Replacement and Cooling Equipment with WAP and EmPower. WAP/Empower/HUD/USDA – What are the opportunities for co-delivery with HOME, CDBG, and USDA programs? 23

Strategies for Low-Income Rental WAP/Empower – Are there marketing opportunities for collaboration with Section 8 housing vouchers? WAP/EmPower/LIHEAP – Is there a way to use LIHEAP Assurance 16 resources to engage building owners in discussions about rental housing sustainability? WAP/Empower/HUD/USDA – What are the opportunities for co-delivery with HOME, CDBG, and USDA programs in terms of rental housing? 24

Strategies for Moderate-Income Owners Assisted Home Performance – What if AHP was combined with Pay as You Save initiatives? Data – Are utilities and financial institutions aware that many moderate-income households have low shelter burdens, good financial status, and equity? Research and Marketing – How do moderate income households think about energy efficiency opportunities? 25

Discussion What are your questions? What are your recommendations? What are your plans?

APPRISE Information APPRISE David Carroll 32 Nassau Street Suite 200 Managing Director david-carroll@ appriseinc.org 609-252-8010 APPRISE 32 Nassau Street Suite 200 Princeton, NJ 08542 27