Low-income electricity assistance 2026: discounts, grants and weatherization

Federal and state programs together provide three layers of energy-cost assistance for income-qualified households: ongoing monthly bill discounts (CARE, EAP, CAP), one-time annual grants (LIHEAP, HEAP), and one-time home weatherization retrofits (federal WAP plus utility programs). Households that qualify for one are typically eligible for several; the combination can reduce annual energy costs by 40 to 70 percent versus the full-rate bill.

Major programs at a glance

LIHEAP: the federal foundation

The Low Income Home Energy Assistance Program (LIHEAP) is the largest federal energy-bill assistance program. HHS allocates the annual appropriation to states by formula (weighted heavily by heating-degree days and low-income population). States then design their own programs within federal eligibility rules. FFY 2026 funding is about $4.1 billion nationally, with state allocations ranging from about $4 million (Wyoming) to over $500 million (New York).

LIHEAP includes three benefit components in most states: a regular heating benefit (paid to the utility on behalf of the household, typically $300 to $1,000 per year), a crisis benefit (emergency assistance to prevent shut-off, up to a few hundred dollars per year), and a cooling benefit (cooling equipment or summer cooling bill assistance, where state programs include this). Application is via the state social services office or a designated community action agency. Application periods vary by state but most accept applications October through April for heating and May through September for cooling.

California CARE and FERA

CARE gives qualifying low-income California households a 30 to 35 percent monthly discount on their PG&E, SCE or SDG&E bill. The discount is automatic each month once enrolled and appears as a line credit. FERA gives an 18 percent discount to households with three or more members whose income exceeds CARE limits but stays under a slightly higher tier. Both are funded through the Public Purpose Programs surcharge that appears on every California electric bill, so the discounts are essentially funded by non-CARE customers paying a small premium.

Eligibility is income-tested with self-certification accepted at enrollment. Income limits scale with household size: about $39,440 for one or two-person households in 2026, scaling to about $60,560 for a four-person household. Households can enroll via the utility's CARE portal, by phone, or via partner community organisations. Re-certification is required every two to four years. Households that recently lost a job, retired, or had a baby may newly qualify; the discount applies retroactively from the enrollment date.

New York HEAP and Energy Affordability Program

New York stacks two complementary programs. HEAP (Home Energy Assistance Program) provides an annual heating grant of $350 to $976 depending on heating fuel, household size and income. HEAP is administered through county social services offices and the application window opens in October each year. HEAP also offers a Cooling Assistance Component providing up to $800 for AC equipment for households with vulnerable members. The Heating Equipment Repair and Replacement component provides up to $4,000 for emergency heating system fixes.

The Energy Affordability Program (EAP), administered separately by each utility, provides ongoing monthly bill credits of $20 to $90 (depending on income tier and household size). ConEd, National Grid (Upstate NY), Central Hudson, NYSEG, RG&E and Orange & Rockland all participate. HEAP recipients are auto-enrolled in EAP; non-HEAP-eligible low-income households can apply directly via the utility. The combination of HEAP annual grants plus EAP monthly credits can reduce a typical low-income household's annual electric bill by 30 to 50 percent.

Ohio PIPP Plus: the income-based cap

Ohio's Percentage of Income Payment Plan Plus (PIPP Plus) takes a different approach: rather than discounting from a fixed rate, it caps the monthly payment at 6 percent of household income for electric service (or 10 percent total if natural gas is also covered). A household making $30,000 per year pays no more than $150 per month for electricity regardless of actual usage; the difference between $150 and the actual bill is forgiven by the utility (with state and federal funding backstopping the utility's lost revenue).

PIPP requires on-time payment of the income-based bill each month; missed payments result in arrearage build-up and eventual disenrollment. Households that maintain on-time payment receive arrearage credits that reduce their accumulated past-due balances. The program is meaningful for low-income Ohioans because it makes the monthly bill predictable and capped, which is more useful than a percentage discount for households on tight budgets. Enrollment is via the Ohio Department of Development and the participating utility.

Pennsylvania LIHEAP and Customer Assistance Programs

Pennsylvania's LIHEAP program (run by the Department of Human Services) provides annual heating grants of $200 to $1,000 plus crisis grants. Application opens November 1 each year. On top of LIHEAP, every major PA utility (PECO, PPL, FirstEnergy, Duquesne Light, UGI for gas) runs a Customer Assistance Program (CAP) that provides ongoing monthly bill discounts of 30 to 60 percent for qualifying customers. CAP eligibility is utility-specific but generally at 150 percent of federal poverty level.

Pennsylvania also operates a robust weatherization sector funded by the federal WAP plus utility ratepayer-funded efficiency programs. PennSAVE is the umbrella for utility-funded efficiency assistance, providing free or subsidised LED retrofit, weatherstripping, attic insulation and (for severe cases) heat-pump or furnace replacement. The combination of LIHEAP grants + CAP monthly discounts + weatherization retrofits is the most comprehensive low-income energy assistance package in the deregulated Northeast.

Massachusetts: the highest-benefit utility discount

Massachusetts utilities (Eversource MA, National Grid MA, Unitil) offer a Discount Rate for income-qualified households that reduces the bill by 32 to 42 percent depending on the utility and program tier. The discount is the most generous monthly bill reduction available from any US utility. Combined with the federal LIHEAP grant (administered through MassCAP, the state's network of community action agencies) and the heavily subsidised MassSave heat-pump and weatherization program, a qualifying Massachusetts household can reduce its annual energy cost by 60 to 70 percent versus paying full rates.

Application strategy: how to stack benefits

For a household that qualifies on income, the highest-leverage path is to apply for all available programs at once rather than one at a time. Start with LIHEAP through the state social services office; LIHEAP enrollment auto-triggers eligibility checks for many other programs. Apply for the state-specific bill discount (CARE in CA, EAP in NY, CAP in PA, Discount Rate in MA, PIPP in OH); enrollment is typically online or via the utility's customer service team. Apply for the federal Weatherization Assistance Program through the state WAP office; this often has a waitlist but is worth being on it for the eventual retrofit. Stack utility-specific efficiency rebates on top where available (MassSave, Energy Trust of Oregon, NYSERDA Clean Heat).

Most applications require proof of income (recent pay stubs, tax return, SNAP or Medicaid eligibility letter), proof of address (utility bill, lease, ID), and household size declaration. Community action agencies in most counties can help with the application paperwork at no charge; their assistance materially increases approval rates for households unfamiliar with the bureaucratic process. The 211 helpline (United Way) is a good first contact for locating local community action agencies and confirming current eligibility rules.

Sources and further reading

• HHS LIHEAP program
• DOE Weatherization Assistance Program
• PG&E CARE portal
• NY HEAP
• Ohio PIPP Plus
• Pennsylvania LIHEAP
• 211 helpline (national community service locator)
• 10 ways to save on electricity (general)
• Why is my electric bill so high (diagnosis)
• How we source these numbers

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