Free changes
- Adjust the thermostat. The U.S. Department of Energy says setting the thermostat back 7 to 10 degrees Fahrenheit for eight hours a day can cut yearly heating and cooling costs by up to 10 percent. Pick a setback that your home and your health can handle.
- Lower the water heater setting. The Department of Energy lists 120 degrees Fahrenheit as a safe setting for most homes. Check the manual first, and do not go lower if anyone in the home has a health condition that calls for hotter water.
- Wash with cold water and run full loads. Heating water is the largest part of a wash cycle.
- Switch off what you are not using. A switched power strip makes this one click for televisions, game consoles and chargers.
- Close blinds on sunny afternoons in summer and open them on sunny days in winter.
Turning a 1,000 watt window air conditioner off for just two hours a day saves 2 kWh a day, or about 60 kWh a month, worth about $10.34 at the 2025 US average price.
Low-cost changes
- LED bulbs. Replacing ten 60 watt bulbs that run 3 hours a day with 9 watt LEDs saves about 558 kWh a year, worth about $96.25 a year. Bulbs cost a few dollars each, so payback is quick.
- Weatherstripping and caulk. Sealing leaks around doors, windows and ducts keeps conditioned air inside. A rolled-up towel under a door is a no-cost start.
- Faucet aerators and a low-flow showerhead. Using less hot water cuts water heating, which is a major electric load in homes with an electric tank.
- A smart or programmable thermostat. It does the setback for you and keeps the schedule.
- Clean or replace the air filter. A clogged filter makes the system work harder.
Bigger upgrades
- Heat pump. A heat pump moves heat instead of making it, so it can deliver two to three times as much heat per kWh as electric resistance heating. It matters most for homes that heat with electricity today.
- Heat pump water heater. It uses far less electricity than a standard electric tank. It needs space and some airflow around the unit.
- Insulation and air sealing. Attics and rim joists are usually the first places to look. A home energy audit shows where the air is escaping.
- Efficient windows and a replacement air conditioner. These help, but they cost the most per dollar saved, so they come after the steps above.
Many utilities and states offer rebates for these upgrades, so ask before you buy. Rules and amounts change often.
What savings to expect
Savings depend on where your power goes today. A home that already has efficient bulbs and a modest thermostat schedule will gain less from the free steps than one that does not. As a rule of thumb, work from the largest load down:
- Find your biggest uses with the ranked guide to home loads.
- Change the habit or the setting that touches that load first.
- Wait a full billing period, then compare kWh per day with the same period last year.
- Only then spend money on equipment, starting with the item that has the shortest payback.
A change that saves 50 kWh a month is worth about $8.62 a month at the 2025 US average price, or about $103.41 a year. Small steps add up, but they will not turn a large house with electric heat into a small apartment.
Common mistakes
- Buying equipment before changing settings. A new device that is set badly still wastes power.
- Using a space heater to heat a whole house. Electric resistance heat costs a lot per unit of heat. It works for one small room for a short time, not for the whole home.
- Judging by one month. Weather swamps small changes. Compare the same months across years.
- Ignoring the rate. If the price per kWh is high, usage changes help less than a plan change.
- Cutting back where it is not safe. Keep heating and cooling at levels that protect health, especially for infants, older adults and people with medical conditions.
Look at the plan, not only the habits
Two homes with the same usage can pay different amounts under different rate plans. Ask your utility whether it offers a time-of-use plan and whether your habits fit it, and whether budget billing would make payments easier to plan. In states with retail choice, compare supplier offers, and check the contract length and the cancellation fee before you sign.
Check the result
Sources and further reading
Frequently asked questions
What is the fastest way to lower an electric bill?
Adjust the thermostat, lower the water heater setting and switch off unused devices. These cost nothing and act on the largest uses in most homes.
Do LED bulbs really save money?
Yes. The Department of Energy says LED bulbs use at least 75 percent less energy than incandescent bulbs. Replacing ten 60 watt bulbs with 9 watt LEDs for 3 hours a day saves about $96.25 a year at the US average price.
Is it worth buying a smart thermostat?
It can be, if you would not otherwise set a schedule. The savings come from the setback schedule, so a programmable thermostat you actually use gives the same result.
How much can I save by changing my rate plan?
It depends on the plan and on when you use power. A time-of-use plan can save money if you can shift large loads to off-peak hours, and it can cost more if you cannot.