Good news from the states: California approved its first inclusive utility investment pilot for an electric utility, and Illinois has an open proceeding to implement the state’s Equitable Energy Upgrade Program.
These are just two of the places where stakeholders are paving the way for broader access to energy efficiency and clean energy solutions. Their interest in scalable paths to energy affordability show how states are eager to pursue solutions that can remove barriers like high upfront costs, credit requirements, renter status, and retro-paid rebates or tax credits.
The truly unprecedented progress in 2025 motivates us in the new year because it shows what is possible even amidst dramatic changes in federal policy direction on both affordability and clean energy.
Despite a falling tide of federal support in the past year, we are fueled by the increasing number of requests from the field and energized to build on this momentum in 2026. With our annual update below, we hope you will be in touch about which threads interest you most!
In this issue:
🔔 Notable Field Progress in 2025
- California Public Utilities Commission authorized California’s first inclusive utility investment pilot from an electric utility
- Illinois Commerce Commission (ICC) set to make ruling on Equitable Energy Upgrade Program guidelines in March 2026
- Massachusetts energy affordability bill aims to deliver meaningful ratepayer savings.
- Ipswich Electric Light Department (IELD) honored with National Energy Innovator Award
🎉 Spotlighting Partners
- Smart Electric Power Alliance and Clean Energy Works release utility guide to scale inclusive utility investments for equitable clean energy access
- Rural Power Coalition (RPC) releases Electric Cooperative Organizing Toolkit, highlights inclusive utility investments as a solution to improve energy affordability
📝 From Clean Energy Works
- Grid Readiness in Rural Electric Cooperatives for Medium and Heavy Duty Vehicle Electrification: Recommendations for Improving Grid Planning to Manage Load Growth
- Clean Energy Works Fellows Design Projects & Strategies to Mobilize Community Power for Inclusive Utility Investment
- Beyond Barriers: Unlocking Home Electrification for Everyone with Inclusive Utility Investment
- How can inclusive utility investments help rural communities?
- Dead Heat: The Danger of Home Power Shutoffs
Notable Field Progress in 2025
California Approves Pilot To Expand Access To Energy Upgrades That Can Lower Bills
In December, the California Public Utilities Commission (CPUC) authorized Southern California Edison (SCE) to launch California’s first inclusive utility investment pilot from an electric utility.
SCE will be able to invest directly in clean energy upgrades at approximately 200 customer sites, recovering costs through a site-specific monthly charge that is less than the estimated savings from the upgrades.
The pilot is designed to help households lower energy bills, reduce pollution, and access modern energy technology—without large upfront costs, credit requirements, or homeownership.
While the current decision applies to one utility, it establishes a policy precedent that could expand statewide. The CPUC’s approval signals that inclusive utility investment is a viable, scalable solution for meeting California’s climate goals while protecting consumers.
Many advocates helped make this latest milestone possible, including The Greenlining Institute, Green for All, Rewiring America, VEIC, and many others.
SCE is expected to finalize its pilot design and open applications within the next 18 months
Illinois Commerce Commission (ICC) set to make ruling on Equitable Energy Upgrade Program guidelines in March 2026
Illinois continues to make progress on implementing the 2021 Climate and Equitable Jobs Act (CEJA), which directs large investor-owned electric utilities to establish an inclusive utility investment offering, called an Equitable Energy Upgrade Program in the law.
The ICC is currently advancing a proceeding to finalize program guidelines and a timeline for ComEd and Ameren to finalize their tariff design and implementation plans.
Leading up to this docket, Commission staff convened public workshops with input from members of the Illinois Clean Jobs Coalition and other stakeholders to shape proposed guidelines on issues such as time-of-use rates and bill payment assistance, participant bill savings assurances, and consistency with existing program best practices established by Pay As You Save®.
The latest draft guidelines improve accessibility for underserved households, strengthen consumer protections, and anticipate the inclusion of solar and storage among home upgrades.
An Administrative Law Judge Proposed Order is expected on or around March 26, 2026.
Massachusetts energy affordability bill aims to deliver meaningful ratepayer savings.
In May 2025, Governor Healey introduced an energy affordability bill (H.4144) that recognized the role inclusive utility investment can play in expanding access to cost-saving energy efficiency and clean energy upgrades.
While the bill is still under discussion, we are encouraged by the growing momentum in the field to bring inclusive utility investments to more households.
Ipswich Electric Light Department (IELD) honored with National Energy Innovator Award
This award is given by the American Public Power Association to public power utilities who are improving customer service and increasing efficiency with innovative solutions.
IELD, which serves about 7,000 customers, was recognized for its innovative work supporting Massachusetts’ clean energy goals. After a 2021 study on inclusive utility investments, they launched a pilot in 2023, with a full-scale rollout and expansion to other municipal utilities planned.
By leveraging existing rebates and the money-saving potential of energy-efficient upgrades like heat pumps, weatherization, and other electrification measures, IELD can make direct investments in clean energy upgrades with either no or significantly reduced upfront costs for customers.
Spotlighting Partners
Smart Electric Power Alliance (SEPA) and Clean Energy Works release utility guide to scale inclusive utility investments for equitable clean energy access
As utilities face a rapidly evolving electric power system, managing rapid load growth without compromising reliability or affordability has become a critical challenge. Investment in distributed energy resources (DERs)—both energy efficiency and dynamic resources aggregated in virtual power plants (VPPs)—offers a powerful pathway to meet this demand while supporting decarbonization and affordability goals.
But to scale these solutions equitably and at speed, innovative financial solutions, like inclusive utility investments, are essential to break down access barriers and ensure all communities can benefit.
Thanks to the work of SEPA’s Inclusive Utility Investment Task Force, this guide provides a comprehensive framework for utilities to implement inclusive utility investments, covering key topics like tariff design, consumer protections, and implementation best practices. Notably, this guide was developed to expand on the foundation of a 2020 utility guide produced by the Southeast Energy Efficiency Alliance (with support from Clean Energy Works), a long-time leader in energy efficiency and affordability.
Rural Power Coalition (RPC) releases Electric Cooperative Organizing Toolkit, highlights inclusive utility investments as a solution to improve energy affordability
Millions of households are routinely excluded from accessing energy efficiency upgrades due to factors like income, homeownership status, or credit history. Rural electric cooperatives (RECs) have been some of the earliest adopters of inclusive utility investment, recognizing it as an innovative pathway to increase affordability, access to energy efficiency upgrades, and sustained investment in the clean energy economy.
In RPC’s Electric Cooperative Organizing Toolkit, inclusive utility investment is highlighted as a solution to help member-owners overcome pervasive barriers to clean energy upgrades.
The toolkit, created for anyone interested in entry points to improving their local energy system, also includes topics from co-op governance to agrivoltaics and securing community benefits plans.
From Clean Energy Works
Grid Readiness in Rural Electric Cooperatives for Medium and Heavy Duty Vehicle Electrification: Recommendations for Improving Grid Planning to Manage Load Growth
Rural electric cooperatives are facing challenges surrounding building and transportation electrification, the rise of data centers, and overall load growth increases. With these challenges comes a unique opportunity to leverage electric medium- and heavy-duty vehicles (MHDVs) as mobile storage and bidirectional vehicle-grid services.
This report provides an overview of how rural electric cooperatives are pioneering inclusive utility investments, examines the challenges and opportunities for MHDV electrification in rural America, and outlines five best practices for improving grid planning to support MHDV electrification.
Clean Energy Works Fellows Design Projects & Strategies to Mobilize Community Power for Inclusive Utility Investment
Clean Energy Works’ first Fellowship cohort completed their projects on advancing inclusive utility investment in their communities.
These eight Fellows, representing regions from California to North Carolina, began their journey at the start of 2025 and brought deep local knowledge to the work. Together, their projects offer practical tools for mobilizing community power and ensuring inclusive utility investments reflect local goals and priorities.
Beyond Barriers: Unlocking Home Electrification for Everyone with Inclusive Utility Investment
Over Climate Week NYC, Clean Energy Works team member, Kai Palmer-Dunning, joined Franz Hochstrasser (S2 Strategies), Melissa Hoffer (Massachusetts Climate Chief), Ashley Musprat (CET), and Amanda Sachs (Rewiring America) on a panel discussion around the role of inclusive utility investments in delivering clean energy affordability.
How can inclusive utility investments help rural communities?
Our team members Kai Palmer-Dunning and Camille Minns joined Rural Electric Cooperative’s Co-lab Series to unpack how inclusive utility investments are helping communities save money, reduce emissions, and power the clean energy transition.
Dead Heat: The Danger of Home Power Shutoffs
While most states prohibit utilities from turning off power or heat during winter months, few states have the same rules during summer months. ut when temperatures climb, millions are at risk of injury or death during heat waves. So what are the solutions?
Climate One interviewed Clean Energy Works’ Co-Executive Director Tamara Jones, along with Jean Su of Center for Biological Diversity and Sanya Carley of Energy Justice Lab, to explore the risks of utility disconnections, and the policies needed to protect the most vulnerable populations from the dangers of home power shutoffs, and scalable solutions for achieving more affordable home energy bills.
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