To lower your electric bill, first find out how much electricity you use, what you pay for it, and which appliances or habits contribute most to the cost.
Start with changes that cost little or nothing. Buying new equipment is not always necessary, and a product advertised as energy-saving may take years to recover its purchase price.
These twelve steps will help you identify useful changes without assuming every household uses electricity the same way.
1. Separate Electricity Usage From Your Total Bill
Your electricity consumption is usually measured in kilowatt-hours, abbreviated as kWh. Your bill may also include fixed service charges, delivery charges, taxes, and other items.
Compare:
- Total kWh used.
- The number of days in the billing period.
- Charges that change with consumption.
- Fixed charges.
- Any rate or plan changes.
A higher bill can result from increased consumption, higher prices, or both.
For a more useful comparison between billing periods, calculate:
Average daily usage = total kWh ÷ billing days.
For example, 900 kWh over 30 days equals 30 kWh per day. Comparing daily averages helps account for bills covering different lengths of time.
Weather, visitors, working from home, and other changes still affect the result. One higher month does not automatically mean an appliance is faulty.
2. Identify the Biggest Uses in Your Home
What matters most depends on your equipment and routine.
Electric heating, air conditioning, electric water heating, clothes drying, and frequently used appliances may deserve attention before small devices.
If you heat your home or water with another fuel, those costs may appear on a separate bill.
Review your utility’s usage history or interval data if available. Look for changes that correspond with heating or cooling seasons, a new appliance, or a different schedule.
Appliance-level estimates in utility apps can be useful starting points, but they are not always direct measurements.
Start here: List your major electric appliances and note which ones run most frequently.
3. Estimate What an Appliance Costs to Run
You can estimate electricity use when you know the appliance’s average operating power and running time.
Electricity used in kWh = watts ÷ 1,000 × hours used.
Estimated operating cost = kWh × applicable electricity rate.
Suppose a hypothetical device draws 1,000 watts continuously for two hours:
1,000 ÷ 1,000 × 2 = 2 kWh.
At an illustrative rate of $0.20 per kWh, that use costs $0.40.
Actual power varies with settings and operating cycles. A refrigerator does not necessarily draw its rated power continuously, and a thermostatically controlled heater may cycle on and off.
Use measured consumption or a suitable annual energy estimate where available. Do not assume the maximum wattage on a label represents continuous usage.
A compatible plug-in energy monitor can help measure some ordinary plug-in appliances. Follow its ratings and instructions; do not use it with incompatible high-power or hardwired equipment.
4. Review Heating and Cooling Before Small Savings
If heating or cooling uses electricity in your home, review its schedule and maintenance needs.
Check filters according to the manufacturer’s instructions, keep airflow clear, and investigate equipment that no longer maintains comfortable conditions.
Thermostat changes should suit the system. In particular, large heating setbacks can cause some heat pumps to use electric resistance backup heat during recovery.
Do not assume a portable electric heater will reduce your total bill if the central heating continues operating unchanged.
Read How to Save Money on Heating and Cooling for a more detailed review.
5. Replace Inefficient Bulbs Where They Get Used Most
If you still have incandescent or halogen bulbs, prioritize lights that run for long periods when comparing LED replacements.
Match brightness using lumens rather than choosing a replacement based only on wattage. Check compatibility with dimmers, enclosed fixtures, and damp locations where applicable.
Here is a hypothetical comparison between bulbs providing similar useful brightness:
| Example bulb | Power | Daily use | Annual electricity use |
|---|---|---|---|
| Incandescent | 60 watts | 4 hours | 87.6 kWh |
| LED | 9 watts | 4 hours | 13.14 kWh |
The difference is 74.46 kWh per year. At an illustrative $0.20 per kWh, that is about $14.89 in annual electricity savings for that bulb, before purchase costs.
Your result depends on the actual bulbs, hours used, and electricity rate.
Turn lights off when they are unnecessary. If you already use efficient LEDs, replacing them again may provide little additional benefit.
6. Adjust Laundry Habits Where Practical
Review both washing and drying.
- Use cold water when suitable for the fabric and cleaning task.
- Choose appropriately sized loads without overfilling the machine.
- Use a suitable spin setting to remove water before drying.
- Clean the dryer’s lint filter as instructed.
- Avoid drying clothes longer than necessary.
- Air-dry suitable items where practical and permitted.
Follow clothing care labels and any special cleaning requirements. Cold water is not appropriate for every task.
Remember that hot-water savings affect whichever fuel heats your water. If your water heater is gas-powered, those savings will not all appear on the electric bill.
Follow dryer ventilation and maintenance instructions. Slow drying can indicate a maintenance issue rather than a need for a longer timer setting.
7. Reduce Unnecessary Hot Water Use
If your water heater is electric, reducing avoidable hot water use can reduce electricity consumption as well as water use.
Start with habits and maintenance:
- Report or repair leaking hot-water fixtures.
- Avoid running hot water when it is not needed.
- Use suitable full dishwasher and laundry loads.
- Compare the flow and performance of replacement fixtures when needed.
Do not change water-heater controls or add insulation without checking manufacturer instructions and household safety needs. Different systems require different handling.
See How to Save Money on Your Water Bill for related ideas.
8. Review Refrigerators and Freezers
Check whether every refrigerator or freezer you operate is still useful.
An extra appliance storing only a few items may be worth evaluating, but do not disconnect one without safely relocating the food and following the appliance instructions.
Keep required ventilation clear, check door seals, and follow the manufacturer’s maintenance guidance. Maintain food-safe temperatures rather than raising settings simply to save electricity.
Use the appliance’s energy information or measured consumption to estimate operating cost. Compare that cost with the value it provides.
Our guide to saving money with your freezer explains how to evaluate storage, food savings, and operating costs together.
9. Use Electronics’ Power Settings
Enable suitable sleep or energy-saving settings on computers, monitors, televisions, and other devices.
Some electronics continue using electricity in standby mode. A compatible switched power strip may help with a group of devices you can safely turn off together.
Do not disconnect equipment that needs continuous power, such as medical devices, security equipment, refrigeration, or essential network connections.
Measure or estimate the likely saving before buying smart plugs for every outlet. A small standby load may not justify the cost or effort of additional equipment.
Start here: Correct a computer or television setting that leaves the device running unnecessarily.
10. Check Whether Time-of-Use Rates Apply
Some electricity plans charge different prices at different times. Others do not.
If you have a time-of-use plan, shifting suitable consumption to lower-priced periods may reduce cost without reducing the total kWh used.
For illustration, moving 30 kWh from a $0.30 period to a $0.15 period would reduce the relevant usage charge by $4.50.
That assumes the same amount of electricity is used and no other charges change.
Check your actual plan’s hours, seasons, weekends, and conditions. Do not assume nighttime electricity is cheaper.
Choose safe, practical scheduling. Do not run equipment unattended when the manufacturer’s instructions advise otherwise.
Before switching plans, ask your utility to compare options using your household’s usage pattern.
11. Compare Upgrades Using Their Net Cost
An efficient appliance can use less electricity while still taking a long time to recover its purchase price.
Use this starting calculation:
Simple payback = net upfront cost ÷ estimated annual savings.
A hypothetical $300 purchase that saves $30 per year has a ten-year simple payback before considering maintenance, financing, or changing rates.
If you already need a replacement, compare the additional price of the efficient option with its estimated savings over another suitable new model.
Check warranty coverage, capacity, installation, and operating conditions as well. Buying a larger appliance than you need can undermine the comparison.
Confirm any rebate and approval requirements before making the purchase.
12. Ask About Assessments, Assistance, and Billing Options
Ask your utility whether it offers home assessments, usage tools, efficiency programs, or assistance for eligible households.
Availability and qualifications vary. Use official program information and confirm the details before paying for work.
Budget billing can make monthly payments more predictable, but it generally spreads costs rather than reducing the electricity you use. Review how the account is reconciled.
If a bill rises unexpectedly and your usage does not explain it, ask about estimated readings, adjustments, and rate changes.
Do not purchase a plug-in “power saver” on the assumption that it will reduce your whole-home bill. Require a credible explanation of what it changes and how the savings were measured.
A Practical First-Month Plan
- Week one: Review your bill and daily kWh use.
- Week two: Check one major appliance or heating and cooling routine.
- Week three: Improve a lighting, laundry, or electronics habit.
- Week four: Review results and compare any larger proposed purchase.
Keep notes on what changed. Compare similar periods and account for weather, occupancy, billing days, and rates.
Frequently Asked Questions
Why is my electric bill high when I am rarely home?
Some equipment runs regardless of occupancy, including refrigeration and certain heating, cooling, or water-heating systems. Fixed charges and rate changes can also affect the total. Check usage data before assuming the cause.
Will unplugging chargers make a big difference?
The result depends on the devices and their standby consumption. Review larger loads first, then use measurements where practical to decide whether smaller changes are worthwhile.
Is electricity cheaper at night?
Only if your plan’s pricing makes it cheaper then. A flat-rate plan may charge the same usage rate throughout the day.
Should I replace working appliances?
Not automatically. Compare the full replacement cost with realistic operating savings, repair needs, and remaining useful life.
Why did my bill fall less than my electricity usage?
Fixed charges, taxes, rate changes, and other billing components can affect the total. A percentage reduction in kWh does not guarantee the same percentage reduction in the bill.
Focus on Changes You Can Measure
Start with your bill, identify likely major loads, and make one useful change at a time.
You do not need to buy a new appliance or monitor every outlet to begin. A better schedule, overdue maintenance, or less unnecessary use may be the most practical first step.
Explore our Bills & Utilities section or read 10 Ways to Lower Your Household Bills for more ways to review recurring costs.