How to Lower Your Electric Bill: 25 Proven Ways

Free changes (no cost)

1. Set back the thermostat 7 to 10°F for 8 hours a day while you sleep or are out: up to 10% a year on heating and cooling.
2. Cool at 78°F and heat at 68°F while you are home.
3. Wash clothes in cold water. With an electric water heater, a warm wash can use about 1.2 kWh against 0.3 kWh for cold: about $0.16 saved per load.
4. Air-dry dishes instead of using heated dry.
5. Run full loads in the dishwasher and washer.
6. Turn the water heater to 120°F if it is set higher.
7. Unplug the second fridge if it is mostly empty.
8. Switch off devices at the wall or with a power strip; 50 W of standby costs about $79.72 a year.
9. Close curtains on hot afternoons and open them to winter sun.
10. Use the microwave or air fryer for small meals instead of the oven.

Your plan and your bill

11. Check your rate. Divide your bill by the kWh used; compare it with your state average in rates by state.
12. Ask about time-of-use or EV plans if you can shift laundry, dishwashing or charging to off-peak hours.
13. Shop for supply if you live in a retail-choice state, avoiding teaser rates that reset.
14. Use budget billing to avoid seasonal spikes (it spreads the cost; it doesn’t lower it).
15. Apply for assistance if eligible: LIHEAP, weatherization programs and utility discounts.

Cheap upgrades (under about $50)

16. Replace remaining incandescent bulbs with LEDs. Swapping a 60 W bulb for a 9 W LED used 3 hours a day saves about $10.16 a year per bulb.
17. Weatherstrip doors and windows.
18. Use smart plugs or timers for heaters, holiday lights and entertainment systems.
19. Buy a plug-in energy meter and measure your biggest plug-in appliances.
20. Clean or replace HVAC filters regularly.

Bigger investments (measure first)

21. Seal and insulate ducts and the attic.
22. Install a smart or programmable thermostat.
23. Replace a pre-2000 fridge: around $118.30 a year saved.
24. Switch a single-speed pool pump to variable speed.
25. Consider a heat pump or heat pump water heater when old equipment needs replacing.

Not sure where to start? Use the appliance cost calculator to find the appliances that dominate your bill, or read what uses the most electricity.

A real example: a $40-a-month saving plan

Here is how a typical all-electric US household using about 1,000 kWh a month (about $182.00) might cut its bill without buying anything expensive:

• Thermostat setback of 7°F for 8 hours a day: about 100 kWh a month in heating or cooling season, around $18.20.
• Unplugging an old second fridge: about 75 kWh a month, around $13.65.
• Washing laundry in cold water: about 25 kWh a month, around $4.55.
• Cutting standby power with switched power strips: about 15 kWh a month, around $2.73.
• Line drying half of the laundry: about 20 kWh a month, around $3.64.

Together that is roughly 235 kWh a month, around $42.77 a month in heating or cooling season. Your own figure depends on your home and your rate, but the order of priorities is the same.

Where to start this week

1. Read last year’s bills and note your highest and lowest months.
2. Check your thermostat schedule.
3. Walk around the house and list everything that heats, cools or runs all the time.
4. Pick the biggest two items from that list and tackle those first.

More questions readers ask

Do LED bulbs really make a difference?

Yes, but a smaller one than heating, cooling and water heating. Replacing ten 60 W incandescent bulbs used 3 hours a day with 9 W LEDs saves about 550 kWh a year, roughly $100.10.

Are solar panels worth it?

It depends on your state, roof, rates and incentives. Get several quotes and compare the payback period with the simple savings in this guide first.

Sources

• U.S. Department of Energy, Programmable thermostats and Energy Saver guidance on water heating.
• U.S. Energy Information Administration, Short-Term Energy Outlook.
• Our methodology.