How Utilities Can Speed Up Equitable Electrification
Electric vehicles, heat pumps, rooftop solar and battery storage are becoming more common across the country. But many households and businesses still face significant barriers to adoption.
For households and businesses with limited resources, the move toward electrification can seem out of reach. Upfront costs, complex installation requirements and difficult-to-navigate government and utility programs prevent customers from accessing technologies that promise long-term savings and environmental benefits.
Utilities are uniquely positioned to address these barriers through well-designed incentive programs. Reaching a broader range of customers helps utilities manage load growth more effectively and maximizes the value of electrification investments.
Experience from utility electrification programs points to three priorities:
- Incentives should address more than the cost of the technology itself.
- Investment strategies must be targeted and data-driven.
- Program design must make participation achievable for all customers.
1. Reduce upfront costs
Cost remains one of the most significant barriers to adoption. While technology costs have declined, panel upgrades, site preparation, permitting and installation can still add thousands of dollars to a project. For lower-income households and small organizations, these costs are often prohibitive.
Some utilities are addressing these barriers through programs that help fund these additional costs, such as panel upgrade programs to support broader access to home electric vehicle charging.
Other utilities are focusing on more affordable technology—used EVs—and offering higher incentives for income-qualified applicants. Examples in California include the pre-owned EV rebate programs by Pacific Gas & Electric (PG&E), San Diego Gas and Electric (SDG&E) and Southern California Edison (SCE), which have collectively delivered more than 25,000 EV rebates to income-qualified customers.
2. Prioritize communities with the greatest barriers to adoption
Directing investments to communities with the greatest need helps ensure incentive dollars deliver the greatest benefit.
California's Self-Generation Incentive Program (SGIP) offers one example. The program's 2020-2025 cycle for battery energy storage incentives prioritized providing power to low-income, medically vulnerable customers in high-fire threat districts where precautionary grid shutdowns occur during high winds. SGIP has also supported the La Jolla Band of Indians, Manzanita Band of the Kumeyaay Nation, Pala Band of Mission Indians, Rincon Band of Luiseno Indians, and the San Pasqual Band of Mission Indians by increasing resiliency via battery energy storage.
CSE has helped utilities and state agencies identify priority communities and customer segments by using its Caret software platform to direct EV charging investments to underserved areas while supporting grid needs. For example, CSE worked with Public Service Company of New Mexico (PNM) to support development of the utility’s Transportation Electrification Plan. CSE analyzed grid data, charging demand projections, community characteristics and greenhouse gas reduction priorities to identify locations for public, workplace and multiunit dwelling charging investments, with a focus on low-income communities.
3. Make participation simple
Even generous incentives can fall short if programs are difficult to navigate. Small businesses frequently lack the administrative staff to navigate complex documentation requirements. Priority communities face additional hurdles, such as language barriers, limited time and less familiarity with new technologies, leading some applicants to give up on the process and walk away.
Program design can significantly influence who takes part. Pairing incentives with technical assistance and customer support helps reach more customers and improve participation among underserved communities.
Expanding access strengthens communities and the grid
Equitable electrification is often framed as a social goal, but it also supports stronger system performance. When adoption is concentrated among a narrow segment of customers, utilities are more likely to face localized constraints and uneven load growth. Broader participation supports load diversity, improves opportunities for demand management and helps utilities build a more balanced and resilient energy system.
Programs designed to reach underserved customers also help communities benefit more directly from the transition by lowering household energy costs, improving local air quality and expanding access to cleaner technologies that can improve reliability and quality of life. When underserved households and businesses can participate, the benefits of electrification reach beyond early adopters and support broader economic and environmental outcomes.
Utilities have an opportunity to shape who benefits from electrification. Programs that reduce upfront costs, target investments where barriers are greatest and help customers navigate the process can expand access while supporting grid and community goals.
Mark Federle
Senior Director
Mark Federle has an extensive executive sales management background in the climate technology start-up environment. Prior to joining CSE, he worked at companies spanning multiple verticals including e-mobility, smart grid sensing and monitoring, photovoltaics, distributed generation and retail…
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