How to Lower Your Electric Bill
Start with the changes that cost nothing, then spend where the payback is fastest. Below: the proven ways to cut usage, room by room, plus a planner that estimates what each one is worth on your bill.
Where the savings are
Heating & cooling — usually 30–50% of the bill
Raise the AC thermostat a few degrees in summer and lower heating a few degrees in winter; cooling costs drop roughly 3% per degree. Clean filters monthly, close vents in unused rooms, and use fans so you can set the thermostat higher without feeling it.
What your AC really costsWater heating — the quiet second
Set the tank to 120°F (many are shipped at 140°F), insulate exposed hot-water pipes, and fix dripping hot taps. Wash clothes in cold water — most of a washing machine's energy goes to heating water, not spinning it.
Water heater running costLighting — the fastest payback
Every incandescent or halogen bulb you swap for an LED removes up to 85% of that bulb's usage and typically pays for itself within months. Focus on the lights that run the most hours first.
Calculate your LED savingsStandby power — the 24/7 trickle
TVs, consoles, chargers, and set-top boxes draw power around the clock — often 5% of the bill. Group electronics on smart strips that cut power when they're idle, and unplug rarely used equipment.
Check a device's 24/7 costOld appliances — know when to replace
A 20-year-old fridge can use twice the electricity of a new one. But replacement only makes sense if the payback fits how long you'll keep it — run the numbers before you buy.
Appliance upgrade ROITiming — cheaper hours exist
If your utility offers time-of-use rates, shifting laundry, dishwashing, and EV charging to off-peak hours cuts the same usage to a lower price. Check what your plan charges per hour of the day.
Model a time-of-use billCalculate your potential savings
Enter your bill, pick the changes you could make, and see the potential monthly and yearly savings for your home. Rates are prefilled with the US average of $0.18/kWh — adjust to yours.
What can you improve?
Homes in hot climates are often 30–50%.
Typical homes: 13–25%.
$17.66–$29.44
per month, if every selected action is taken
$211.95–$353.25
before upgrade costs
1,200 kWh
14,395 kWh per year
Where the savings come from
- LED lighting≈ $14.24/mo
- AC thermostat +3°F≈ $6.93/mo
- Water heater at 120°F≈ $2.77/mo
- Standby power≈ $5.50/mo
These are potential savings based on typical homes and published rules of thumb — not a guarantee. Actual results depend on your home, climate, habits, and equipment. Upgrade costs are not included; use the LED Savings Calculator, Appliance Upgrade ROI, or Solar Payback Calculator to check how fast each change pays for itself.
Frequently asked questions
The free ones: raise the AC thermostat 2–3°F, set the water heater to 120°F, wash laundry cold, and put idle electronics on smart strips. Together these typically trim 5–12% of a bill before you buy anything.