How to lower your electric bill

Where a typical household's electricity goes

Exact shares vary by climate, house size and appliance mix, but national averages give a useful starting point for prioritizing effort.

Heating and cooling: the biggest lever

• Set thermostat setbacks: roughly 7–10% savings per year for each 7–10°F setback held for 8 hours a day, according to widely cited DOE guidance.
• Replace or clean HVAC filters monthly during heavy-use seasons — a clogged filter forces the blower motor to work harder.
• Seal obvious duct leaks in accessible areas like attics and basements.
• Use a programmable or smart thermostat so setbacks happen automatically, even when you forget.
• Have your system serviced yearly; refrigerant or airflow problems can quietly increase run time.

Water heating

• Lower the water heater thermostat to 120°F (49°C) — hot enough for most households, and safer for children.
• Insulate the first few feet of hot and cold pipe near the tank, and insulate the tank itself if it feels warm to the touch.
• Fix dripping hot water faucets; a slow drip wastes both water and the energy used to heat it.
• Wash more laundry loads in cold water; water heating is a major share of a washing machine's electricity use.

Phantom and standby loads

Many devices draw power continuously even when 'off' — game consoles, set-top boxes, phone chargers, and appliances with always-on displays or remote sensors. Individually small, these loads add up across a household.

• Put chargers and entertainment centers on a power strip you switch off when not in use.
• Unplug rarely-used appliances (spare fridge, guest-room electronics) entirely.

Lighting

• Replace remaining incandescent or halogen bulbs with LEDs — LEDs use roughly 75–80% less energy for the same brightness and last far longer.
• Use dimmers and occupancy sensors in rooms that are frequently left lit.
• Take advantage of natural daylight where practical instead of running fixtures during the day.

Laundry and major appliances

• Wash full loads rather than several small ones.
• Use cold water washes and high-spin cycles to cut dryer time.
• Clean the dryer lint trap every load — a clogged trap increases run time and is a fire risk.
• Air-dry when practical, especially in warm weather.
• Check appliance age: refrigerators and window AC units older than 12–15 years are often markedly less efficient than current ENERGY STAR-rated models.

Time-of-use rates and insulation

If your utility offers a time-of-use (TOU) plan, electricity is priced differently depending on the hour of the day. Shifting laundry, dishwashing and EV charging to off-peak hours (typically overnight) can lower costs without reducing total kWh used.

Insulation and air sealing address the root cause of high HVAC load: adding attic insulation, sealing window and door gaps, and using weatherstripping reduce how hard your heating and cooling system has to work in the first place, which compounds with any thermostat or equipment changes above.

Putting it together: a realistic order of operations

• 1. Fix obvious waste first: air leaks, dripping hot water, always-on standby devices.
• 2. Adjust thermostats and water heater temperature — free changes with real impact.
• 3. Switch remaining lighting to LED.
• 4. Shift flexible loads to off-peak hours if you're on a time-of-use rate.
• 5. Only then consider equipment replacement (HVAC, water heater, appliances) once the free and low-cost changes are done.