It doesn’t take a light-bulb moment to realize you’ve been paying more for electricity. The average residential electricity bill increased at the highest rate on record in 2022 and continued rising in 2023, according to the U.S. Energy Information Administration.
So if you’ve noticed your utility bill rising (to almost $140 a month on average), you’re not alone. But there are plenty of ways to save money on this cost.
1. Schedule an energy audit
When you’re trying to lower your electric bill, start by contacting your energy provider.
“Many utilities offer free energy-efficiency items to their ratepayers, complimentary energy-efficiency audits, and generous incentives and rebates for equipment replacement,” said Christine Ciavardini, a client relationship manager with MD Energy Advisors.
These programs vary with every utility and state, but typically, an energy specialist will visit your home and:
- Identify air leakage problems and insulation needs.
- Evaluate your major appliances.
- Go over your current energy usage.
- Screen for toxic materials in the home.
- Install free energy-saving products, like LED light bulbs, low-flow showerheads, smart thermostats and smart power strips.
The specialist will give you a report of their findings. Depending on what your home needs and your income level, you may qualify for rebates and incentives to pay for insulation projects and energy-efficient heating and cooling equipment.
2. Use smart plugs and power strips
When you turn off a device — like a coffee maker, gaming console or TV — it may continue drawing electricity if it remains plugged into the wall. “These devices are called energy vampires,” said Cisco DeVries, the chief executive of energy-saving service firm OhmConnect and a former aide to the U.S. Secretary of Energy during the Clinton administration.
You slay these energy vampires by using smart plugs or smart power strips. Connect your device to the smart plug or smart power strip, then plug that gadget into a regular electrical outlet. “These smart devices will detect when you’re no longer using a device and turn off the power supply,” DeVries said.
These can save you $200 a year, or more.
3. Install a smart thermostat
A smart thermostat, like Google Nest, monitors your energy use and behavior, and then automatically adjusts its settings to make your home as energy efficient as possible. Replacing a regular thermostat with a smart one can save you up to 15% on heating and cooling, which works out to about $145 annually.
4. Ask about discounted rates
Some utility companies offer “time of use” plans, where your electricity rates are based on the time of day you consume electricity. You pay lower rates during off-peak hours, which vary by utility and region. Activities such as doing your laundry, running the dishwasher and charging your electric vehicle during off-peak hours — usually between 9 p.m. and 6 a.m. — can help you save.
Contact your utility company to ask about these plans and whether you need to sign up. Some utilities and third-party companies, such as OhmConnect, can connect to devices in your home and alert you when electricity is most expensive. You may save on your energy bill and even get cash rewards for using less.
5. Improve your insulation
When your heating and cooling system pumps air into your home, some of that air can escape through poorly insulated walls, floors and ceilings. That causes major energy waste and makes your home less comfortable.
“Attic insulation, air sealing and floor and crawl space insulation will keep your house warm in the winter and cool in the summer,” DeVries said. It can also save you 20% on your electric bill.
These projects can cost up to $8,000, but your utility company may pay for some or all of the cost.
6. Seal up your house
After insulating your home, it’s a good idea to find the other nooks and crannies where air may escape. To seal your home and prevent air leaks, you can:
- Fix damaged window and door seals.
- Add weatherstripping to your windows.
- Insulate your water pipes and water heater.
- Install door sweeps.
- Install foam gaskets behind switchplates and outlets.
- Hang thermal curtains.
7. Replace your windows
High-performance windows filter out UV rays and prevent temperature increases when the sun shines through. They also provide a tight seal, keeping cool temperatures from entering your home.
These features can help lower your electric bill because your HVAC system doesn’t work as hard to heat or cool your home.
8. Install dimmer switches
A light dimmer is a device that controls the brightness of a light fixture. It can help you save energy because it reduces the flow of electricity to the bulb, so the light operates with less power. That means you save money on your electric bill — and your light bulbs last longer, too.
9. Use LED light bulbs
Replacing your regular light bulbs with energy-efficient versions can help you save energy and money, too. LED light bulbs cost a bit more, but they consume at least 90% less energy and last 25 times longer, DeVries says. The average household saves about $225 per year by making this switch.
10. Wash clothes in cold water
When you wash your clothes in warm or hot water, about 75% of the electricity used goes toward heating that water. Lowering the temperature from 75 degrees to just 60 degrees can help you save at least $60 a year. Cold water is better for your clothes, too, since it helps prevent shrinking, fading and wrinkling.
11. Use your dishwasher
Energy-efficient dishwashers are designed to use much less water than older models, so they’ll help you save thousands of gallons of water compared to washing by hand. But they also reduce your utility costs by $40 a year, not to mention hours of your time. For further savings, turn off the heat-dry setting, which uses more energy to heat the dishes.
12. Use energy-efficient appliances
When you need to replace a major appliance — like your washer, dryer, refrigerator or dishwasher — consider getting a model that’s endorsed by the federally run Energy Star program.
The yellow Energy Star label helps you identify products that save the most energy and money. A dryer with the Energy Star certification, for instance, uses 20% less energy than a standard model.
13. Install solar panels
Using solar energy to power your home can help cut your electricity bill down nearly to $0. And if your system produces more power than your home uses, you may be able to sell the excess energy back to the utility company.
An 8-kilowatt system runs about $24,000 on average, but using the federal residential clean energy credit, statewide programs and local rebates could cut down that cost considerably.
14. Use community solar
If you rent your home, you can’t afford solar panels or your roof isn’t fit for a solar array, you may have another option. With a community solar project, a company or a utility builds a solar farm off-site. Businesses and residents in the area can subscribe to the solar farm and receive a share of the electricity generated by those panels. Each month, you get credits to lower your energy bill.
That subscription “can help your community reduce its carbon footprint while also reducing your electricity costs — without making any changes to your rooftop or home,” says Daniella Gray, the head of customer relations at Altus Power.
Frequently asked questions (FAQs)
Of all the appliances in a home, the heating and cooling system uses the most energy by far. Electric air conditioners and heaters account for about 45% to 50% of your utility bill.
Yes, it’s much cheaper to use renewable energy sources — such as solar, wind and geothermal power — than fossil fuels like gas and coal. You’ll pay about 3 to 6 cents per kilowatt-hour (kWh) for solar energy and between 5 and 17 cents per kWh for electricity from fossil fuels, according to the National Renewable Energy Laboratory.
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