How to lower your electric bill: The ultimate guide

This article was originally published in November 2019. It has been updated to reflect new stats and insights as of August 2024.

The average American pays over sixteen hundred dollars a year for electricity. Because there are hundreds of things involved in a bill, figuring out exactly what to focus on is the most difficult part of lowering your monthly energy costs.

That’s why we’ve gathered dozens of proven methods for shaving money off of your energy bill every month... and they don’t require you to sacrifice any of your daily comforts.

An overview of saving on your electric bill 

Every home, individual, and family has its own unique energy profile. Let’s say you live in a 900-square-foot apartment. This apartment most likely has a fridge, oven, and HVAC system. If you’re lucky, you may also have a TV, a microwave, and a dishwasher.

If you live in a 2,500-square-foot single-family home, there are even more factors that go into your electric bill. For starters, you have more space, which comes with added lighting, heating, and cooling. It's likely that you also have more appliances that you use more often. In a single day, you could end up spending double or triple the amount of energy than the average renter of a one-bedroom apartment.

Fortunately, there are several universal ways people can save money on their energy bills regardless of where they live. Everyone knows to turn lights off when a room isn’t occupied and to keep heating and cooling to a minimum. But there are many more strategic ways to save significant money on your energy bill every month. 

For the beginner saver

If you don’t have a lot of time to make changes around your home, these tips are for you. Each tip should only take a few minutes to complete. 

Kitchen

Raising your refrigerator temperature by a few degrees can save you hundreds of dollars a year. The fresh food section of your fridge only needs to be at 36-38 degrees Fahrenheit, and many times fridges are programmed at two to five degrees lower than necessary. As for your freezer compartment, you only need to set it to between zero and negative five degrees Fahrenheit.

Turn off and unplug your coffee maker before you leave for the day. Coffee makers and similar appliances tend to have features that run all day, such as a clock or timer. This means the device can become a “phantom load” that uses energy even when it is not in use. Simply plug all of your kitchen appliances into a power strip to turn them off at once.

Run your dishwasher instead of handwashing. Handwashing dishes uses over eight times the amount of water that a dishwasher does to clean an entire load. This means your dishwasher can save you over 5,000 gallons of water a year, which can save big bucks on your energy bill.

Run your dishwasher at night rather than during the day because it helps minimize energy demand during peak hours. This helps reduce your environmental impact and will likely save you money, depending on your utility and home thermostat.

Pack your dishwasher with as many items as you can. Having a full dishwasher saves you water, energy, and money because you will run it fewer times and its water-to-dish ratio will be much lower.

Keep your fridge and freezer full. When you stock up your fridge and freezer, they require less energy to keep cold. It helps regulate the temperature inside and requires much less energy to maintain. If you cannot keep them full, put bags of ice or pitchers of water in any open spaces to make sure the fridge stays efficient. 

Turn off “heat dry” on your dishwasher. You may not notice, but your dishwasher is using over 15%more energy than necessary to heat dry your dishes. Air dry your dishes instead to save money on your electric bill.

Let your food thaw before you cook it. It will require less time and energy for it to cook, saving you additional money on your bill.

Cook with lids on. Using the lids to your pots and pans will cook your food properly and often cut your cooking time in half. Lids keep water vapor in while you cook, ensuring that you do not lose any heat while cooking. This increased energy efficiency can help save gas or electricity depending on your stove type. 

Avoid using your broiler. Instead, set the exact temperature for the task at hand and proceed from there. Heating up the broiler requires large amounts of energy in a short time, while all other functions in an oven are much more gradual and efficient.

Laundry

Keep your dryer's exhaust clean. You should clean your exhaust with a lint remover kit every month to increase the airflow through your exhaust duct. This helps your dryer run more efficiently and your clothes will dry much faster.

Use dryer balls every time you dry your clothes. The dryer balls help put the wet clothing in contact with the hot air created in the drying chamber.

Do your laundry at night. Just as you should run your dishwasher at night, you should also avoid doing your laundry at peak hours during the day. You can save energy and money by choosing to clean your clothes after dark.

Wash your clothes in cold water. The temperature in your washer does not matter when it comes to getting your clothes clean. Technological advances have made washing your clothes in cold water just as effective, if not more, than in hot water. If you are worried your clothes might not get as clean as they would with heat, you can easily switch to cold water detergent.

Line-dry your laundry. Of course, the best and most energy-efficient way to dry your clothes is to air dry them. It is more useful to use a dryer for larger items. Smaller items, and quick-dry items such as your gym clothes, can easily be line-dried. Line drying can save you up to $100 or more per year.

Lighting

Change your light bulbs to LEDs. LED lights use 80% less energy than traditional incandescent bulbs and cost over four times less. This means that if you change every single lightbulb in your home to LEDs, you will start saving energy and money immediately.

Plugs

Use smart power strips. Smart power strips allow you to separate energy loads based on how often you use a device. This way, you can turn all of your devices off at once when you leave the house instead of having to unplug everything individually.

Windows

Use your window shades in the summer to help block out heat that comes in through the windows. The Department of Energy says that covering your windows in the summer can reduce heat gain by up to 77%.

Clean your windows in the winter. Removing any residue or oils from windows allows more sunlight to enter your home and heat it naturally. Sunlight coming into the home can increase heat gain without you having to raise the temperature on your thermostat.

Put more plants around the windows. Plants can help naturally shade the inside of your home. Not only do they fit well in windowsills and brighten up the room, but they can help cool the house during the summer by providing extra blockage from the sun. 

For when you really need an extra buck

These tips take a little longer to complete but are worth the effort. If you are looking to dig deeper into your home to save more cash, these are the solutions for you. 

Heating and Cooling

Keep your thermostat at a level temperature. Make sure to increase your thermostat temperature during cooler seasons and decrease it in warmer seasons. The general rule is to turn your thermostat back about 7°-10°F from what you would normally set it at in that season for eight hours a day. This way you can reduce your energy use enough to save upwards of 10% a year on heating and cooling. You can simply change the temperature before you leave for work.

Install a programmable thermostat. For even more convenience, you can install a smart thermostat, such as a Nest or Ecobee, that allows you to control the temperature changes via phone. 

Entryways

Use door draft guards in all entryways. Covering any leakage points in entryways where heating or cooling can escape is extremely important in energy conservation. Additionally, revolving doors retain heat better than swinging doors, which can help lower your electric bill. Keeping air inside a space is extremely vital when saving money, so make sure to plug all potential leakage areas during all seasons.

Kitchen

Clean your refrigerator coils. This may seem like a daunting task, but if you do not clean your coils often, your energy costs for running the fridge could rise up to 35 percent. Simply locate where your fridge’s coils are and vacuum away all residue and dust.

Install or replace your kitchen faucet aerator. Aerators are simple, small devices that can be added to any sink. They help you use less water in the same amount of time. Simply replacing an old aerator with a new one can conserve hot water and related energy costs.

Bathroom

Install or replace your bathroom faucet aerators. As previously stated, aerators can be installed or fit to any sink, even older models.

Install efficient showerheads. Installing a newer, more efficient showerhead can save you upwards of $25 a year if you have an electric water heater.

Lighting

Install dimmer switches. Installing dimmer switches around your home or apartment encourages residents to use them. Contrary to popular belief, dimmers actually save money by elongating the life of your light bulbs.

For the super committed

If you are willing to go above and beyond to find savings, these tips are for you. Although they may take a few hours or days to complete, you can end up saving hundreds of dollars a year.

Water

Install a hot water heater timer with temperature controls. These timers are designed to schedule when to supply hot water to your home. This helps limit your consumption of hot water and it could save you $100 a year or more if you decrease the temperature of your hot water as it is released. If you rent or live in an apartment building, ask your landlord if they would be open to installing a timer.

Switch to high-efficiency toilets. Although installing newer, more energy-efficient toilets is an investment, you can easily make the money back in time. An average energy-efficient toilet can save you over $150 per year. 

Entryways

Keep your home tightly sealed. This is a more permanent solution to draft leaks. You can seal your windows and doors, and even the slightest gaps, with caulk or weather strips. 

Heating and Cooling

Replace your HVAC & furnace filters. Most renters and homeowners overlook HVAC and furnace filters. However, when you take the time to look up at your vents, you are bound to see dust and residue building up in them. All you have to do is take off each individual vent cover and vacuum the vent and filter. If they look and feel like they need to be replaced, purchase new ones to help improve the airflow in your space. You could save up to 15% on your energy bill by replacing your filter regularly. If you rent an apartment, your maintenance staff should already be doing this for you.

Regularly check up on your HVAC equipment. This can be applied to both apartments and homes. If it seems like your HVAC equipment is not working as well as it should be, you can ask management to check up on your individual unit. If you own a home, look at the system as a whole to see if there are any improvements or replacements that can be made.

Install ceiling fans. Yes, lowering your temperature in the winter and increasing it in the summer helps reduce your energy use via temperature change. However, ceiling fans can help distribute the air that may have risen to the ceilings of your home. The popular belief is that fans actually make the home cooler. However, fans simply help move the hot or cold air toward you.

Adjust your furniture to improve cooling efficiency. Sometimes your sofa is directly under or covering an air duct. Rearranging your furniture so it is in the ideal position for airflow will help lower your electric bill. When you cannot feel the air coming out of a vent, you will change the temperature on your thermostat unnecessarily. Moving the furniture from the vent will help prevent excess energy use and cut your monthly costs. 

Outside

Use reflective roofing materials. Use white materials or paint your roof white so the sun reflects off of it in the summer, keeping your home cooler.

Improve your landscape skills. Plant large trees and plants on your lawn so that the shade will eventually face your home. This will help protect your home from excess sunlight and extreme weather. With more shade, you will feel less inclined to decrease the temperature in the heat of the summer.

Install a green roof. Many homes and buildings in big cities are installing green roofs as insulation to absorb the heat from the sun and keep in warmth during the winter. They also help deflect any excess sunlight that may unnecessarily heat the building on hotter days. 

Use solar lighting outdoors. Instead of running your outdoor lights on electricity, you could replace them with solar lamps. These gain energy from the sun during the day and shine brightly at night when you need them to. They are also very affordable. You can even buy motion-sensor solar lights to expand their lifetime.

Join a community solar program. This is one of the best ways to save money on your electric bill. By joining a community solar program like Arcadia’s, you can save on your annual bill — as you earn solar credits from being enrolled on a solar project that are then applied directly to the bill. (Learn more about how it works.)

The easiest way to lower your electric bill 

No matter what place you call home, there are dozens of ways to lower your monthly energy bill. By simply re-evaluating your daily choices and making small improvements, you are bound to save hundreds of dollars a year, all while heavily reducing your carbon footprint.

There’s no doubt that enrolling in a community solar program is the easiest way to save money on your electric bill and support the clean energy movement. Getting started with Arcadia couldn’t be easier. It only takes a few clicks to find out if you’re eligible. Click the button below to see if you qualify to save on your bill.

Electric bill savings FAQs

What are the main factors that contribute to high electric bills?

High electric bills often result from factors such as outdated appliances, excessive energy use, poor insulation, and inefficient HVAC systems.

Are there any incentives or rebates available for energy-saving upgrades? 

Yes, many governments offer incentives, rebates, or tax credits for energy-efficient upgrades such as installing solar panels, upgrading to energy-efficient appliances, or improving home insulation. Check with local utility companies or government agencies for available programs.

How can I monitor my energy usage to identify areas where I can save? 

You can monitor your energy usage using smart meters or energy monitoring devices or by reviewing your utility bills regularly. Many utility companies also offer online tools or apps that allow you to track your energy usage and identify opportunities for savings.