An electric bill arrives higher than expected. Turning off lights helps a little, but lighting is no longer the main driver of most bills — especially in homes that already use LED bulbs. The bigger opportunities are heating and cooling, water heating, large appliances and the devices that quietly draw power all day.
Key Takeaways
- Heating, cooling and water heating are typically the largest energy uses in US homes.
- Thermostat setbacks while sleeping or away can reduce heating and cooling costs; the Department of Energy estimates up to around 10% a year from setbacks of 7 to 10 degrees for 8 hours a day.
- Standby power from electronics and appliances can add up over a year; smart power strips help.
- Time-of-use plans can lower bills if you can shift usage away from peak hours, but can raise bills if you cannot.
Read your bill first
Your bill shows:
- Kilowatt-hours (kWh) used
- Rate per kWh, which may vary by time or tier
- Fixed charges, such as a monthly service fee
- Usage history, often by month
Compare usage month by month. Big swings usually reflect heating or cooling. Many utilities offer online tools showing daily or hourly usage from smart meters.
Heating and cooling
Thermostat setbacks. Adjusting your thermostat when you are asleep or away reduces how much your system runs. A programmable or smart thermostat makes this automatic.
Seal air leaks. Weatherstripping doors and windows and sealing gaps around pipes and wiring can reduce drafts.
Maintain your system. Replace HVAC filters regularly. Dirty filters reduce airflow and efficiency.
Use fans. Ceiling fans can make rooms feel cooler, allowing a higher cooling set point. Turn fans off when no one is in the room.
Manage sunlight. Close blinds on hot days; open them on sunny winter days.
Water heating
- Lower the water heater temperature to around 120°F if it is set higher, as long as it meets your household’s needs.
- Fix leaking hot water taps.
- Use cold water for most laundry loads.
- Install low-flow showerheads.
- Insulate accessible hot water pipes.
Standby power
Many devices draw power even when “off,” including:
- TVs and streaming devices
- Game consoles in instant-on mode
- Computers and monitors
- Chargers
- Microwaves and appliances with clocks
Individually small, these loads can add up over a year. To reduce them:
- Use smart or advanced power strips that cut power to devices when not in use.
- Change settings on game consoles and TVs to energy-saving modes.
- Unplug rarely used devices.
An inexpensive plug-in electricity monitor can show how much individual devices use.
Appliances
- Run dishwashers and washing machines with full loads.
- Air dry dishes if your dishwasher allows.
- Clean the refrigerator coils and check door seals.
- Retire old secondary fridges and freezers if they are rarely used; older units can use a lot of electricity.
Time-of-use rates
Many utilities offer time-of-use (TOU) plans, where electricity costs more during peak hours (often late afternoon and early evening) and less at other times.
TOU plans can save money if you can shift usage, for example:
- Running dishwashers, laundry and dryers at off-peak times
- Charging electric vehicles overnight
- Pre-cooling your home before peak hours in summer
They can increase bills if most of your usage falls during peak hours and cannot be shifted.
Many utilities provide calculators comparing plans based on your actual usage history. Check before switching.
Assistance and rebates
Check for:
- Utility rebates for efficient appliances, smart thermostats and insulation
- Free or discounted home energy audits
- Bill assistance programmes for eligible households
- Budget billing, which spreads costs evenly across the year
Frequently Asked Questions
Does turning the thermostat back make the system work harder later? Generally, setbacks save energy because your home loses less heat when indoor temperatures are lower. Heat pumps may need specific settings; check manufacturer guidance.
Are LED bulbs worth replacing? LEDs use much less energy than incandescent bulbs and last longer.
Do smart plugs save money? They can help control standby loads, but they also use a small amount of power themselves.
Is it cheaper to run appliances at night? Only on time-of-use plans or where rates vary by time.
The bottom line
Focus on the biggest energy uses first: heating, cooling and water heating. Add standby power controls, efficient appliance habits, and check whether a time-of-use plan fits your routine.
