An exogenous increase in household income could have a substantial impact on both the total fuel consumed and the type of fuel used, which could in turn have important consequences for public health and the environment. This study examines how cash transfer programs impact household energy transitions in developing countries, especially Ghana. Utilising a difference-in-differences technique, we found that cash transfers increased the likelihood of households adopting charcoal (better than traditional biomass) for cooking by 1.70%, while reducing their reliance on traditional biomass and modern fuels by 1.42% and 0.4%, respectively. There was no significant shift from traditional biomass to modern energy sources for lighting or fuel budget shares among the recipients. Additionally, cash transfers reduced wood collection time for males, but not for females. These results highlight the nuanced effects of cash transfers on energy use and underscore the need for tailored policy interventions to enhance access to energy and alleviate energy poverty.