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How to Save on Your Electric Bill: 15 Effective Tips to Cut Costs Today

How to Save on Your Electric Bill: 15 Effective Tips to Cut Costs Today
Michelle Lee
Michelle Lee

Last updated - September 26, 2024

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According to the Department of Energy (DOE), Americans have had to deal with higher electric bills over the past year due to high inflation rates. The harsh winters caused by climate change have only worsened the situation and increased our electric bills even more. 

But what if you could save up to $400 or more annually? There are many different ways to save money and electricity, but the Department of Energy has put together a hand-picked list to help you do just that, and we picked the best 15 tips. Let’s dive in.

15 Ways to Save On Your Electric Bill in Summer and Winter

Summer and winter are two seasons when your household consumes more electricity than at any other time. In fact, the International Energy Agency (IEA) states that global electricity consumption will continue to grow at least 3.4% by 2026. And that can only mean one thing – bigger bills.

Countries are initiating different global-scale plans to reduce emissions and the total carbon footprint as environmental awareness grows. But as for the individual actions each of us can take, there are ways to reduce electricity consumption without sacrificing comfort.

1. Adjust Your Thermostat

Set your thermostat to 78°F (25.5°C) or higher in the summer, and use fans to circulate the air. Yes, it’s nice to enter a pre-cooled room, but try to keep your air conditioner off when you are away from home to save energy. 

In winter, you can set it to 68°F (20°C) or lower at home and use warm clothing and blankets to keep yourself comfortable. If you plan to leave your home for a longer period, like going to work, turn down the thermostat to 55°F (12°C) or lower. 

With a smart programmable thermostat, you could automate the process, making regulating temperatures easier. To put it into perspective, every 1°C you lower, you can save around 1% on your energy bill.

2. Use Natural Light

Maximize the benefits of the sun! You don’t need to use lights all the time if your rooms have windows. You can keep curtains and blinds open to let in the sunlight. This way, you’ll reduce your electricity consumption and provide natural light, which may also benefit your health. 

Recent studies have reported that the more time we spend in artificial light, the more health problems we experience. That’s why blue-light eyeglasses and UV filter skin creams are booming.

You could also replace your light bulbs with CFL or LED bulbs as LED lights use less energy. Smart light bulbs are also an option because you can set a schedule when the bulbs should be on, or off. If you opt for more natural light and energy-efficient light bulbs, you could save around $75 or more per year.

3. Use Energy-Efficient Appliances

Energy-efficient appliances consume less electricity than their conventional counterparts. Therefore, consider replacing your old appliances with new energy-efficient models to save money on your electric bill. The main culprits are usually the refrigerator, air conditioner unit, and washing machines.

You could opt for home appliances that have the Energy Star certification, which seeks to help reduce energy consumption and greenhouse gas emissions. For example, choosing tankless or Energy Star-certified water heaters (electric or heat pump models) can save up to $550 per year. 

4. Unplug Unused Devices

You’d be surprised how often we leave our electronic devices plugged in when we’re not even using them. Even if you turn off your devices, TVs, gaming consoles, chargers, and computers continue to draw power. Trying to be more aware and remember to unplug unused devices is one action, but you could also use a smart power strip or phantom power to easily disconnect multiple devices. 

According to the Natural Resources Defense Council (NRDC), more than 100 billion kilowatt-hours are wasted every year because of unplugged devices, which is an average of $165 per US household annually.

5. Use Ceiling Fans

Fans and air conditioners are lifesavers against the sweltering summer’s scorch, especially with the rising temperatures due to global warming. If you’re someone who thrives in warmer temperatures, you could consider using ceiling fans. Experts recommend installing ceiling fans as they use less electricity than air conditioners and can circulate cool air throughout your home. 

In summer, a ceiling fan can make a room feel 4°F (~2°C) cooler, so you can raise the thermostat setting without sacrificing comfort. 

In winter, reversing the direction of the fan can push warm air downward, improving heating efficiency. These fans typically consume between 55 and 100 watts, so it costs only a few dollars to run a ceiling fan for a prolonged time.

6. Seal Air Leaks

Air leaks are one of the main reasons why homes lose energy during summer and winter. Sealing these leaks with caulk, weatherstripping, or insulation can prevent energy loss. 

Sealing air leaks around doors and windows can significantly reduce the amount of electricity needed for air conditioning, saving you money. This step not only improves comfort but can cut your heating and cooling costs by up to 10% annually.

7. Use a Clothesline

Clothes dryers are one of the most energy-intensive appliances in your home. Using a clothesline and letting your clothes air dry can help you save money on your electric bill, and increase the longevity of your clothes. Clotheslines are a free and eco-friendly way to dry your clothes, and they can also make your clothes smell fresher than dryer sheets. 

Using a clothesline or drying rack instead of the dryer can drastically reduce electricity usage. Not only does air-drying clothes save energy, but it’s also gentler on fabrics, helping your clothes last longer. If you avoid using the dryer, you can reduce your electricity bill by up to 5%, saving about $36 annually.

8. Water Heating and Usage Efficiency

Hot showers and baths are a great way to decompress and warm up, but constantly indulging can add up and increase the bills. It’s estimated that water heating accounts for about 18% of home energy use. 

To combat this, you could consider lowering your water heater temperature to 120°F (49°C), installing low-flow showerheads, and insulating your water heater. Also, switching to an Energy Star-certified water heat pump could save you around $550 per year.

9. Conduct a Home Energy Audit 

Keeping track of your monthly utility bills is one way to see how much you spend. But if you want to know exactly how much energy your household is using, consider getting a professional to do a home energy audit. 

During the process, a certified auditor examines a home’s insulation, windows, doors, HVAC systems, appliances, and lighting for efficiency issues. While you’d have to spend some money for this audit, and post-audit upgrades, the long-term benefit would actually save you money – up to 25% annually. 

10. Renewable Energy Options

If you’re seriously thinking about saving on utility and energy bills long-term, you should think about solar panels. Installing solar panels or subscribing to a community solar program can drastically cut back on electricity usage. 

Sure, it will cost to install the solar panels, but there are also federal and state incentives that work towards a greener future on a global scale. So, if you decide to go down the path and utilize the power of the sun, you could save up to 90% per year

11. Maintenance and Regular Check-ups

Audits, tracking how much you spend, and switching to more eco-friendly appliances are some of the key activities that can help save money, but there’s more you can do. Regular HVAC system and other electrical appliance maintenance is just as important. 

Dirty filters, clogged vents, and neglected heating and cooling systems lead to increased energy consumption. But if you make a point to include household appliance checks in your next Spring cleaning list, it could also reduce your energy bill by 5-15% annually. 

12. Utility Rate Plans and Peak Usage Times

Many companies like Pacific Gas and Electric (PG&E), Con Edison, CenterPoint Energy, or Tacoma Power offer time-of-use (TOU) rate plans. Essentially, this means that electricity costs less during off-peak hours (typically late at night or early in the morning), which translates to smaller bills. 

Every plan offers individual rates for residential customers, and it highly depends on every customer, so if you’re considering this option, consult with dedicated specialists. 

13. Home Insulation

Insulating your home is a great way to reduce the ever-rising electricity bills. Home insulation minimizes heat transfer between your home and the outside. 

You can have your walls, attic, and floors insulated to hold more meat in the house during wintertime and keep the heat coming from the outside during summer. In short, insulation can cut heating and cooling costs by 15% per year.

14. Energy-Efficient Windows

While insulation and weatherization (sealing) are great ways to upgrade your home and optimize spending, you might want to add installing energy-efficient windows. These windows are designed with special coatings, multiple panes, and improved framing for better insulation. 

With energy-efficient windows, you can minimize your heating and cooling needs, which also decreases energy bills by 25-30%. As a bonus, these types of upgrades also improve comfort levels and raise your total home value.

15. Seasonal Energy-Saving Tips

Seasonal adjustments can make a big difference in energy efficiency. Here’s a list of some tips & tricks you might find helpful for saving energy: 

  1. Optimize your water usage. Install low-flow showerheads and faucets to reduce hot water use.
  2. Adjust refrigerator settings during winter. Since the temperature drops in the winter, set your refrigerator to 37°F (3°C) and freezer to 0°F (-18°C) for optimal energy efficiency. 
  3. Use draft stoppers in the winter. Place draft stoppers at the bottom of doors to prevent heat loss and keep cold air out.
  4. Utilize solar warmth. Whenever there’s a sunny day, open the curtains and let the sunlight in to warm up your house/apartment. For summer, keep the curtains closed during peak heat hours. 
  5. Program your thermostat. This tip works for both summer and winter. Program your thermostat to lower the temperature in the winter when you’re away, and in the summer, program the thermostat to use less energy to cool your living areas. 

Wrapping Up

Every penny counts during these difficult economic times, and reducing your electricity consumption is a simple yet effective way to save money on your electric bill. Implementing the tips above can reduce electricity consumption and improve your home’s energy efficiency. Doing this will allow you to save money and do your part to conserve energy and protect the environment.

Today, saving money has become crucial for any member of society. Financial management is an essential skill for many people to have. Pawns.app offers excellent guidance on earning extra cash with many of its survey and affiliate marketing options. Be sure to check our website to learn more about the opportunities we have.

FAQ

What Is the Cheapest Way to Save Energy?

There’s no denying that some tips here may require a small investment upfront before you can start seeing the savings in your electricity bill. However, things like using your thermostat wisely, utilizing the natural light available at your home, and unplugging devices you’re not using are tips you can start implementing immediately at no cost.

What Runs up Your Electric Bill the Most?

Keeping your home at the right temperature through heating and cooling is what runs up your electric bill the most. These devices often represent 40% of your total monthly power consumption. Other big home appliances like refrigerators, washers, dryers, and ovens also consume a significant amount.

Michelle Lee
Michelle Lee

Copywriter, Pawns.app

Hailing from the beautiful island of Borneo, Michelle has traveled extensively, but not nearly enough. She has a degree in computer science and a background as a data analyst, so it's no surprise that she is particularly enthusiastic about tech and its impact on how we learn, work, live, and play. Michelle is passionate about both education and food. She's currently focused on living life to the fullest with her family, seamlessly integrating her professional expertise with her dedication to family and personal well-being.

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