Energy Efficiency is Essential for Sustainable Housing Affordability

Energy costs are an important component of keeping housing affordable. Many of us are seeing our energy bills increase as energy costs rise. One way to keep these costs down is energy efficiency – reducing the amount of energy needed to power, heat, and cool our homes. As part our work to keep housing affordable, the City of Madison is taking action to increase the energy efficiency of new and existing affordable housing. We are also partnering with Wisconsin’s Focus on Energy program and Dane County to help Madisonians access state and federal funding.

The City's Affordable Housing Fund provides gap financing to support projects that increase, preserve, or improve the supply of safe, quality, affordable rental housing for low-income households. To receive funding, projects must participate in Focus on Energy Design Assistance, implement building design strategies that reduce the building’s energy use by 20% beyond state energy code minimums, and include rooftop solar. Investing in energy efficiency for affordable housing reduces the amount of energy needed to power, heat, and cool each apartment, which results in energy bill savings for low-income households who need it most. Lower utility bills mean these households have more flexibility to pay for other basic needs and more financial stability. 

To help transform existing affordable housing, the City also funds the Efficiency Navigator Program administered by Sustain Dane. The Efficiency Navigator provides free energy efficiency upgrades to small- and medium-sized multifamily housing with rents that are affordable to households at or below 80% of area median income, such as weatherization and improved heating, ventilation, and air conditioning systems. These improvements lower utility bills for tenants and make their homes more comfortable at the same time. Participating property owners agree to lock in their rents at the local fair market rates set by the U.S. Department of Housing and Urban Development (HUD). This increases housing affordability, especially for moderate income earners at around 80% of area median income. The Efficiency Navigator is a triple win for our community – it saves energy, reduces utility bills, and cuts carbon and air pollution. 

We also help new and existing affordable housing go solar through our MadiSUN program. MadiSUN’s Backyard Solar Grants are available to non-profit organizations and affordable housing providers to help pay the cost of installing rooftop solar. Grants can fund up to 20% of the total project cost with a maximum grant amount of $10,000 for solar installations of less than 75 kilowatts. Solar installations of more than 75 kilowatts can receive a maximum grant amount of $20,000. The 2024 grant cycle will open in the Spring.

In addition to these City programs, there are state and federal programs to help pay for home energy efficiency upgrades that save money. Check out Focus on Energy's rebates on products like smart thermostats, high efficiency gas furnaces and boilers, heat pumps, and insulation. To see federal incentives you might qualify for, visit the Dane County Office of Energy and Climate Change’s comprehensive guide to federal rebates and incentives provided by the Inflation Reduction Act.