Energy efficiency a worthy investment
The New Mexican has been documenting struggles of Santa Fe households to find safe, affordable housing. One story pictured a renter applying tape to her front door, stating “her doors and windows don’t seal perfectly, and her home is always cold.” Most of us know there’s a real challenge for affordable housing in Santa Fe, but there is less coverage about the worn-down conditions of the houses and apartments many call home.
Developing a sustainable path for improving the conditions of these homes is the driving force behind the mayor’s recent budget request for money to create a clean energy fund.
Although commonly called green banks, these aren’t really banks. They’re pots of money typically managed by nonprofits that can be used to reduce risks for local banks and credit unions that might not otherwise create loan products to serve low- and middle-income households.
Green banks can expand access to low-income communities by providing loan guarantees, borrower subsidizations or loan-loss reserves to reduce the risk associated with serving customers with lower credit scores or high debt-to-income ratios. Green banks have proven track records in over a dozen states.
In energy policy lingo, “energy burden” is the proportion of a household budget that goes to pay for electricity and heating. According to census numbers, the energy burden is 3 percent for the average New Mexican household, but it’s over 15 percent for 150,000 lower-income households in our state.
Struggling with aging homes that have inadequate insulation and outdated appliances not only makes for uncomfortable and unsafe living conditions, but also leads to heating and electricity bills many can’t afford. For example, Public Service Company of New Mexico last year reported 43,349 residential customers were past due, averaging $467 owed by each.
Weatherization and energy-efficiency measures typically involve improving insulation in walls and ceilings, sealing drafty doors and windows, and helping replace outdated appliances with upgrades like new refrigerators and LED lighting. Studies estimate weatherization and energy efficiency can reduce energy burdens by 25 percent.
Energy efficiency can also be one of the most cost-effective investments to reduce planet-warming greenhouse gas emissions. We know we are running out of time to avoid the most catastrophic climate impacts.
To gain experience with expanding rooftop solar access, the city of Santa Fe initiated its Solarize Santa Fe program last year. This program reduced the cost of rooftop solar through lower-priced installations from bulk purchases, paired with small subsidies to ensure lower-income households received savings on day one. Residents who participated in the pilot program experienced a 7 percent discount from the state-average rooftop solar price and will collectively save over $600,000 over the 30-year life of the solar panels.
Reducing poverty while fighting climate change is behind Mayor Alan Webber’s vision for supporting the creation of a clean energy fund/green bank that will focus on low- and middle-income households. This will build the foundation for a self-sustaining fund and will be paired with another iteration of the Solarize program, expanding its reach and offerings.
We urge you to add your voice in support of this initiative, ensuring economic and environmental benefits from energy efficiency and renewable energy reach households most in need. Environmental justice is a good investment for the city.
Christian Casillas works as director of policy at the Coalition of Sustainable Communities New Mexico and also as a Buddhist-trained chaplain at Christus St. Vincent Regional Medical Center. Beth Belo≠ is chair of the board of the Santa Fe Community Foundation, executive director of CSCNM and former chair of the Sustainable Santa Fe Commission.