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Chicago is paying $15 million to electrify lower-income homes and it’s calling on startups to help


Chicago skyline in daytime
Image Credit: jake grella // Unsplash
  • Chicago has a plan to cut emissions by 62% by 2040 and when 70% of emissions come from buildings and utilities that have a history of racial disparities via power disconnections, the city has a plan to tackle both climate change and energy justice at the same time.

  • Announced last month, the city of Chicago is seeking one or more retrofit providers to equitably decarbonize lower-income homes with induction stoves and heat pumps, focusing on Chicagoans who live in one- to four-unit residential buildings and otherwise may not have the means to replace fossil fuel appliances.

  • As one of the first actions of Mayor Brandon Johnson, elected in May on an environmental justice campaign promise, the city is investing $15 million in the program.



According to a request for proposals released last month, the city of Chicago is seeking one or more retrofit providers to equitably decarbonize lower-income homes as a part of its s 2022 Climate Action Plan, which has a central goal of reducing citywide carbon emissions by 62% by 2040. Additionally, the city is hoping to lower resident utility bills while it lowers its carbon footprint.


The new initiative focuses on moderate-to-low-income Chicagoans who live in one- to four-unit residential buildings and otherwise may not have the means to remove fossil fuel appliances from their homes. Thus, the retrofits will include fossil-fuel-free induction stoves, heat pump water heaters, heat pump clothes dryers, air sealing around doors and windows, smart thermostats, and other energy-saving measures.


Additionally, the city also hopes that the initiative builds on its goal to enhance the pathways for Black, Indigenous, and People of Color (BIPOC) workers and business owners to meaningfully participate in the clean energy economy.


“This $15 million dollar investment is just the beginning of our commitment to implementing a just energy transition for residents and workers in our City, particularly those hit first and worst by climate change,” Mayor Brandon Johnson, who just took office in May, said in a statement.


“The Residential Decarbonization and Retrofit Program will catalyze our efforts to provide critical solutions for residents on the frontlines of the climate crisis as we take a leadership role citywide in reducing our dependence on fossil fuels,” he added.


When running for office, environmental justice was a key pillar of Johnson’s platform, where he pledged to usher in a “Chicago Green New Deal,” that focused on water, air quality, a just transition, housing, education, transportation, and utility justice.


Additionally, as reported by Kari Lydersen at Energy News, energy justice advocates are also urging that the electrification program helps to mitigate a “vicious cycle” of racial disparity in the utility’s record of utility disconnections while ensuring including the education piece touched on in Johnson’s Green New Deal that informs people curious about the first steps of getting gas out of their homes.


“Nearly 70% of Chicago’s emissions are from buildings, and the City of Chicago recognizes that mitigating the climate crisis and building healthier communities in Chicago begins at home,” Angela Tovar, Chief Sustainability Officer for the City of Chicago, said in a statement.


With a goal to decarbonize between 200 and 350 homes at no cost to income-qualified homeowners before the end of 2025, the retrofit program aims to hit many of Johnson’s campaign trail promises. On August 4, the city held a virtual pre-bidders conference for organizations interested in ushering in a greener Windy City.


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