Richmond’s hidden energy crisis: Why thousands are paying more to stay warm (and what can be done about it)

Richmond’s latest energy analysis uncovers the hidden forces pushing household utility costs to unsustainable levels.

Across Virginia, many families begin their mornings by adjusting layers rather than thermostats, and navigating rooms that feel too cold in the winter or too warm in the summer. In older homes throughout Richmond in the East End, Southside, and other long-established neighborhoods, indoor temperatures can shift dramatically—sometimes even more so than conditions outside. 

That can make opening utility bills pretty scary.  Such moments of worry and calculation, repeated in thousands of homes across the commonwealth, add up to a citywide crisis that a new report now makes impossible to ignore.

The Virginia Community Climate Collaborative (C3) released a report identifying Richmond as one of the most energy-burdened cities in Virginia. More than 28,000 households spend a larger share of their income on energy than is considered affordable, and more than 20,000 experience a “very high” energy burden—meaning 10% or more of their monthly income goes toward heating, cooling, and electricity.

According to the report, funded through the City of Richmond Office of Sustainability’s Neighborhood Climate Resilience Grant (NCRG) program, low-income households face the steepest challenges, with an average energy burden of 17%. At that level, even small fluctuations in usage or seasonal temperature changes can push a family into serious financial instability.

Where the problem falls the hardest

The report maps the highest energy burden in Richmond’s East End, Southside, Jackson Ward, and Gilpin Court—neighborhoods marked by long histories of underinvestments and discriminatory housing policies. Many of these areas were once redlined and denied access to financing and infrastructure improvements, leaving them with older buildings and fewer resources to maintain or upgrade them.

These structural inequities show up today not only in higher monthly bills, but in the daily lived experience inside these homes. C3’s study notes that many buildings in high-burden neighborhoods struggle to even maintain safe indoor temperatures.

Residents in these areas may rely on space heaters or other supplemental sources of warmth when central systems fall short, a practice that increases both financial strain and safety risks. And because household budgets are already stretched thin, the report warns that even a single high utility bill can trigger a shutoff notice, placing families at additional risk during extreme weather.

Today, those overlapping challenges fall disproportionately on predominantly Black communities and residents living in older rental properties or mobile home communities. The report draws a direct link between historic segregation and current energy insecurity, showing how decades-old policies continue to shape the comfort, safety, and stability of thousands of Richmond households.

Why Richmond energy bills are so high

The central issue is not how much energy residents use, but how much their homes lose, according to C3’s analysis. Richmond’s housing stock is among the oldest in Virginia, with nearly one-third of homes built before 1940. More than 70% of low-income households live in homes built before 1980, before modern insulation and efficiency standards became common.

Older homes often have drafty windows, insufficient insulation, and aging HVAC systems that run for long hours without effectively heating or cooling the space. Even residents who keep lights off, use appliances sparingly, or try to limit their energy use often find bills rising regardless of their efforts.

Renters, who make up 57% of the city, have even less control. They can’t repair insulation, replace outdated systems, or seal gaps in a building they do not own. Yet they bear the financial consequences of those inefficiencies each month.

A path forward

C3’s report outlines solutions that could dramatically reduce energy costs for families, including weatherization programs, repairs to aging houses, updated HVAC systems, stronger renter protections, and coordinated efforts among organizations such as project:HOMES, the Local Energy Alliance Program (LEAP), and Housing Opportunities Made Equal (HOME) of Virginia.

It also highlights renewable, clean energy as a core component of the city’s long-term affordability and resilience strategy. 

Here’s why: C3 noted that the same neighborhoods facing the highest energy burden are also the most vulnerable during prolonged outages, extreme weather, and rising energy costs. Renewable energy is less volatile than fossil fuels, and can help households maintain essential utilities during grid disruptions while lowering electricity bills over time.

According to C3, renewable energy offers two intertwined benefits: affordability, by reducing reliance on high-cost heating fuels and outdated electrical systems; and resiliency, by providing a dependable backup source of energy during emergencies. 

The report makes clear that these opportunities depend on investments from utilities, corporate partners, and government agencies—not individual households who have already faced steep economic hardship.

That includes new projects—and federal and state programs already designed to support energy affordability and renewable deployment, such as the US Department of Energy’s residential efficiency initiatives, the Clean Energy State Alliance’s national renewable energy partnerships, and Virginia’s own energy assistance programs, which help low-income households manage heating and electricity costs.