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How do I reduce my electricity bill?

You can reduce your electric bill by taking the following steps:

• Reduce heating cost. You can reduce your energy bill by 1-2% for every degree you lower your thermostat.
• Reduce heat loss. Better insulation is a long-term investment that will reduce your energy bill by keeping your home warm without additional heating.
• Reduce cooling costs. Set your thermostat to the highest setting you find comfortable during the summer. A slightly higher indoor temperature could mean considerable reductions in your energy costs.
• Reduce heat gain. A well-insulated attic will dramatically reduce the energy your air conditioning system uses during the summer, reducing your energy bill.
• Reduce pool operating costs. Pools use a lot of energy, and running your pool efficiently could save you hundreds on your energy bill.
• Reduce hot water cost Take showers, not baths. Use a dishwasher rather than hand dishwashing.
• Appliance usage. Reducing your appliance usage and using your appliances more efficiently are the easiest ways to reduce your energy bill. Just running a cold washing machine can reduce your energy bill noticeably.
• Invest to reduce your monthly electricity cost. Replace light bulbs with LED bulbs. Add more loft insulation. Replace failed glazing units. Upgrade to the latest Energy Star appliances.

Reduce heating cost

You can reduce your electricity bill by reducing the amount of electricity you use in your home every day.

Five steps you can take immediately to reduce your electricity use:

• If your heating is electric, this will likely be the largest part of your electricity bill during the colder months. Try reducing your thermostat setting to the lowest point from 68F (20C) to 75F (24C) that you find comfortable. A rule of thumb is that you can save about 1-2% on your energy bill for every degree you lower your thermostat. We are checking this rule of thumb with the analysis we run on the data our members share with us and will update accordingly in the future.
• Try lowering the temperature set point significantly just before everyone goes to bed and raising it just before they get up. A few extra blankets can help keep you warm overnight and can allow you to reduce the temperature by another few degrees. Some smart heating controllers can reduce the heating temperature while you are not at home.
• Consider using an electric blanket where you sleep or a heating pad where you sit.
• Central heating is excellent, but not all rooms need the same temperature. If you have a rarely used room, reduce how much heat is directed to it by closing vents, turning down radiators, and keeping the door closed. Radiator thermostats are an excellent way to set room temperatures individually.
• Finally, you can open your curtains and blinds when the sun is out and allow the free energy from the sun into your home.

Reduce heat loss

How can you stop the heat already in your home from escaping?

Here are four things you can try:

• Attic/loft insulation generally has a good return on investment. Most modern homes have attic/loft insulation, but the local recommendations on the level of insulation increase over time. Your home might benefit from some additional depth of insulation. Ensure all spaces are properly insulated, as they were only sometimes insulated equally, particularly in older homes.
• Ensure your home's windows, doors, and other areas are properly sealed and insulated. One way to identify drafts is to blow out a candle close to a door or window and watch the direction in which the smoke moves. Attic/loft insulation has a good return on investment.
• Close your curtains and blinds at night to add a bit of insulation to your windows. You can close these, day and night, in unused rooms.
• Keep the damper closed whenever you aren’t using your fireplace. Even when not used, your chimney can draw warm air from inside your home to the outside.

Reduce cooling costs

If your home is cooled by electricity, the cooling cost is one of the largest portions of your electricity bill during the hotter months.

Some ways to reduce the cost of cooling your home:

• Try increasing your thermostat setting to the highest point in a range from 72F (22C) to 78F (26C) that you find comfortable.
• Ventilation is one of the least expensive ways to cool your home. If the temperature outside is cooler than inside, open windows to allow a breeze instead of adjusting the thermostat.
• Airflow within your home can make it feel cooler, and ceiling fans are very cost-effective. Installing a ceiling fan can also reduce the need to cool your home as much while sleeping.
• Change air filters regularly. It helps your HVAC work properly and improves the air quality in your home.
• Plant trees/large shrubs around your home for shade. It is good for the environment and makes your home more appealing.

Reduce heat gain

Keep the heat out of your home when you are trying to stay cool with these ideas:

• The temperature in your attic/loft space can increase significantly above the outside temperature. Attic/loft insulation effectively reduces the heat that transfers into your home. In addition, attic/loft vents and fans can help to stop heat buildup.
• If you plan to replace your home's roof, the additional cost of including a radiant barrier as part of the roof decking replacement can be a good return on your investment.
• Poor seals around doors and windows can allow hot outside air to enter your home. If you are replacing glazing units, consider Low-E glass which reflects the sun away.
• Install window coverings to keep heat out. Window shutters or voile curtains can be elegant ways to reduce the amount of hot sun that enters your home.
• Close curtains and blinds during the day to add a bit of insulation and keep the sun out.
• Keep the damper closed whenever you aren’t using your fireplace. Even when not in use, your chimney can draw cold air from within your home to the outside to be replaced by hotter air from outside.

Reduce pool operating costs

If you are lucky enough to own a pool, running it will consume a lot of electricity. The heavy-duty pumps which circulate the water for filtering and drive a pool cleaner are very power-hungry.

Here are some things to pay attention to:

• Keep a balance between chemical use, manual cleaning, automatic cleaning and filtration.
• Run the main pool pump for just the right time based on the size of your pool (water volume).
• Run the pool cleaner for less time than the main pool pump.
• Install a two-speed or variable-speed main water pump, and run the pump on low speed most of the time. Use the high speed for the time that the pool cleaner runs.

There are more details in our Pool Running Cost Optimization article.

Try our free Pool Calculator to optimize your pool setup.

Reduce hot water cost

Take short showers instead of baths. Showers usually consume less hot water than filling a tub. In addition, if you install a low-flow shower head, the water used reduces further. It’s also possible to install low-flow taps/faucets, which reduce water consumption and the amount of hot water used. Avoid running the hot water straight into the drain. Instead, fill a bowl with only what you need, then let it stand afterwards to release the heat into your home.

Appliance usage

Many appliances have ways to use less electricity.

Try using these:

• Run your clothes washer only when full and in economy mode. Pick the correct load size setting if you cannot run a full load. Heavy load and soil settings usually consume more electricity, so select the proper load and soil setting before starting each wash.
• Run your clothes washer on a colder setting. Up to 90% of the electricity used for laundry is heating the water. Modern detergents enable colder wash settings to be effective. You don't need to reserve these lower settings for garments which require special care.
• Run your dishwasher only when full and in economy mode. Dishwashers often have an eco or economy mode that uses less energy and water to clean each load. You can also reduce water usage by only scraping dishes before loading and not rinsing them. Rinsing dishes with a running tap is particularly wasteful of both water and energy.
• Turn off the lights when leaving a room. A good habit that we probably learned from our parents, and it’s easy to do once it becomes routine. Set up lights on timers to ensure they are off overnight. Switch to low-energy light bulbs (CF or LED).

Quick ways to keep warm

When saving money on heating, putting on another layer of clothing is much cheaper and quicker than reaching for the thermostat. It’s also more likely that you will remove that extra layer when you warm up rather than remembering to turn the thermostat back down. Pay particular attention to your hands and feet, which can often feel the cold most. Keep a warm blanket or a heating pad in the chair where you sit the most.

In the summer, humidity makes a hot day feel even hotter. You can use this to your advantage in winter to make a cold day feel slightly warmer. Heating a soup, boiling some healthy vegetables, or making a hot drink can all help increase the humidity inside your home, helping to make it feel warmer. In addition, a warm bowl of soup or a hot drink can warm your hands while you eat or drink.

Invest to reduce your monthly electricity cost

As technology improves, there are always new things that you can do to make your home more energy efficient.

Here are a few to consider with various levels of investment:

• Replace light bulbs with LED bulbs as they can last years and are more energy efficient than other types of bulbs. LED light bulbs typically use less than 20% of the energy of a traditional light bulb.
• Additional loft/attic insulation.
• Replace failed/blown glazing units.
• Install double-pane or triple-pane glazing.
• Install energy-efficient appliances.
• Solar panel installation.
• Install a tankless (on-demand) water heater.
• Install a more energy-efficient water heater/boiler.
• Install a more energy-efficient HVAC system.
• Hang thicker curtains.

Further Reading

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