By Jordan Watts
As the cost of living continues to increase year over year, everyone is naturally on the hunt for more ways to save. For many this means looking for strategies to reduce energy bills and improve energy efficiency.
As of 2023, Americans spend an average of $161.90 per month on electricity, coming out to just under $2000 per year on their electricity bills. By reducing your power bill by just 20%, you put an extra $400 back where it belongs–in your wallet. With that in mind, we’ve compiled our top, most practical tips to help you reduce your electricity bill and enjoy some well-deserved savings.
Before you can begin reducing electricity bills, you’ll need to get realistic about your current energy consumption. While it might sound nice to cut your electric bill by 75 percent, it’s likely an unrealistic goal. Take inventory of your current energy consumption by reviewing electricity bills for the past year.
By looking at trends in your electricity bills from the last year you’ll get a comprehensive view of your energy usage and cost. This will also provide you with insights into how seasonal changes impact utility costs and energy demand for your home. From there you can set goals based on how much you can feasibly improve energy efficiency and reduce unnecessary energy consumption to save on electricity bills.
Keep in mind that your electric bill is made up of more than just your electricity usage. While you have influence over how much energy your home uses and can control your electricity rate by selecting the best plan for your home, some costs are out of your control. Your electricity bill also factors in taxes and the cost of energy delivery, which is set by the utility provider in your area.
Pro Tip: Ensure that you have the best electricity rate by periodically comparing plans and providers in deregulated energy markets. EnergyBot’s price comparison tool can help you find the best plan for your home by connecting to real data and providing you with personalized recommendations in minutes.
After you’ve reviewed old electricity bills, the best way to identify areas for improvement in your energy consumption is to conduct a home energy audit. A home energy audits will help you determine how energy efficient your house or apartment is, as well as pointing out what adjustments can help you demand.
You can either hire a professional energy auditor or assess your energy efficiency yourself. While it’s possible to reduce energy consumption by taking the DIY approach, we typically recommend reaching out to your utility provider first to see if they will cover some (or all!) of the cost. Plus, professional auditors can help identify some of the finer details that you might miss.
Things to look for when conducting an energy audit include:
Get a complete list of things to look for in your home energy audit here.
Did you know that heating and cooling costs make up 43% of energy usage in the average home? That means almost half of your electricity bill can be traced back to the thermostat.
One of the easiest ways to reduce your energy costs is by adjusting the temperature in your home by 5-10 degrees based on the season. However, no one wants to sacrifice a comfortable home so we recommend installing a smart thermostat. Smart thermostats can be programmed to adjust the temperature in your home based on your schedule– turning the air conditioning or heat up and down to ensure savings while you’re away.
While these devices can be between $100-$200, they can also end up paying for themselves within the span of a year. Adjusting your programmable thermostat 10 degrees even just overnight can reduce your electricity by 10% on monthly bills.
To keep your HVAC and related appliances running smoothly and efficiently it’s important to keep up with regular maintenance. Not only should you be swapping out air filters monthly to improve airflow throughout your home, you should also stay on top of your annual repairs.
Schedule an annual HVAC maintenance appointment with professionals to ensure that your heating and cooling systems aren’t working harder than they should. The easier it is for airflow to circulate throughout your house, the less energy you will be wasting with a central air conditioner or heating system.
Investing in energy-efficient appliances can make a huge difference in reducing your energy bill long-term. While they may come at an upfront cost, consider how saving 5-10% on your energy bill every month could help put money back into your pocket for years to come.
When the time comes to replace any of your large appliances it’s important to look for new models with low energy consumption and high efficiency ratings. This is not to say that you should go out and purchase an entirely new dishwasher today, but when you do it’s wise to invest in efficient appliances. The best will be those with the Energy Star label.
Appliances to consider replacing with energy efficient models over time include:
If you take one thing away from this article it should be this: LED lightbulbs you almost 75% less electricity than incandescent. While it’s unrealistic for you to see that hefty reduction across your entire power bill. when it comes to turning on the lights it’s estimated that you could save up to $225 per year.
Pro Tip: Look for bulbs and fixtures with the Energy Star label to ensure that you’re picking the best, most energy efficient options.
Have you ever heard of an energy vampire? They’re devices and appliances that continue sucking up electricity and running up your power bill even after you turn them off. Devices like TVs, computers, speakers, and charging stations often tend to be the biggest culprits. They sit in standby mode, using a trickle of power constantly and running up your energy consumption by 5%-10% every year.
To avoid energy vampires running up your energy usage, you can plug these devices into a smart power strip. Smart power strips cut off the electric current to idle devices when they aren’t in use to reduce energy waste. You can also use a standard power strip with a manual on/off switch to help reduce energy waste.
Not only does regular home maintenance improve the value of your house, it can also extend the life of your heating system and improve your electricity costs. By sealing up air leaks and improving your insulation you can largely reduce energy waste.
Heating and cooling loss through air leaks, especially around your windows and doors, can force your HVAC system to work harder than necessary– drawing significantly more power. To combat this it’s crucial that you seal up these leaks with caulk or weather strips to save money in the winter and summer.
Not all air leaks are immediately apparent, so if you do choose to invest in a home energy audit this is a great time to identify weak points. Other areas of concern include cracks and gaps around electrical outlets, baseboards, and attic hatches. Sealing these areas will help make your home less susceptible to drafts and can save you an up to 10% a year.
Pro Tip: Every couple years you should also consider updating and replacing the insulation in your home. Insulation in attics, walls, and floors help to improve your annual heating costs and energy efficiency by keeping heat in.
Although the cost of water and electricity are separate utility bills, reducing your water consumption is a great strategy for how to reduce power bills. In fact, water heating is the second biggest use of energy in most homes, making up 19% of the average home’s electricity consumption. By conserving water and taking advantage of cold water when you can, you can largely reduce your energy bills.
Standard shower heads go through 2.5 gallons of water a minute, meaning that trimming just 2 minutes off your shower time could save 5 gallons of heated water. Alternatively, you can replace your old showerhead with a more efficient one.
Efficient shower heads use no more than 2 gallons of heated water per minute, reducing the volume of water necessary to heat. If you’re looking for a low-flow showerhead to reduce water consumption look for one with the WaterSense label, which is certified to meet efficiency criteria by the EPA.
There are a number of ways to reduce the amount of electricity used in washing laundry, but one of the easiest ways is to switch to warm or cold water when washing clothes. Not only will your clothes get just as clean, it can also prevent them from shrinking, fading, and wrinkling.
Pro-Tip: If you have a “Time of Use” or “Free Nights and Weekends” electricity plan, you can take advantage of little to no electricity costs by doing your laundry at night.
If you’re looking for ways to go green and help the environment while saving money over time then you might want to consider investing in solar panels. While they can be costly upfront, solar panels can pay off big in the long run.
Depending on where you live, solar panels can be advantageous when it comes to reducing your carbon footprint and in decreasing your reliance on the electricity grid. If you live in an area that experiences frequent surges in the cost of electricity, solar generators and solar batteries have the potential to significantly reduce your bills.
Pro Tip: Look into Home Energy Tax Credits offered in your area before investing in solar panels to see how you can save.
Small actions can make a big difference when it comes to saving money on your utility bills. Consider the following tips to easily reduce your energy consumption over time:
Remember, the best way to ensure that you’re not overpaying for electricity in deregulated markets is to periodically shop for the best rates and plans. Take advantage of EnergyBot’s comparison tool today to ensure that you have the best energy plan for your house.
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