12 Ways to Save Money on Your Electrical Bill

Whether it’s winter and you’re using heat, summer when you’re using your air conditioning, or heating water year-round, you’re spending a lot of your money on the electricity bills.

According to the Energy Information Administration (EIA), electricity is the number one energy source for households. As of 2015 (the latest data including EIA update in 2020), the typical American family is spending just under $1,450 per year on electricity alone.

Unlike natural gas, petroleum fuels, and wood, which are needed for only a handful of uses such as heating and cooking, electricity can power those and well over 100 other energy end uses for households.

The three largest categories and their shares of residential electricity consumption in 2015 were:

• 17% air conditioning
• 15% space heating
• 14% water heating

Lighting and refrigerators are used in nearly every home, and they are the next largest electricity end uses. The shares of annual electricity end uses can change from year to year based on the weather.

Just think about what else you could do with that money. Pay down debt, save up for a well-earned vacation, save more in your rainy-day fund, etc. Why pay all the money toward electricity if you don’t have to?

In my research, I have discovered ways to reduce your electricity bills by reducing your household consumption of energy.

Stick with me to learn more about the ten ways to save money on your electric bill.

Lighting and Power

1. Swap Out Light Bulbs

Save $45 each year by changing your bulbs with compact fluorescent or LED bulbs that bear the Energy Star label.

2. Start Using Smart Power Strips

Some of your devices continue to consume energy even when not in use. Devices in sleep or standby mode account for approximately ¼ of all residential energy consumption.

You can solve this problem by using a smart power strip. They are designed to protect both your devices and your wallet. Smart power strips can detect when a device is in standby mode, cut off the power, and save energy. Click tips for using smart power strips to learn about the difference between the different types and which ones to use for your devices.

3. Do an Energy Audit

Call your utility provider and ask them to conduct a home energy audit to help you identify ways to reduce your energy usage. They will usually do this for free.

4. Turn off Your Lights When You Leave

Start to make it a habit to turn the lights off when you leave a room or leave your house. Put notes up to remind you.

*NOTE - You can also have light fixtures without all the bulbs. I only put half the number of bulbs allotted for in my bathroom fixture above my sink.

Cooling and Heating

5. Adjust Your Fridge and Freezer Temperature

To reduce your energy consumption, adjust your refrigerator and freezer temperature. You should set and maintain your fridge at 37-40 F temperature to work at peak efficiency. Freezers should be at 5 degrees. Set a standalone freezer at 0 degrees.

6. Check All Seals for Leaks and Cracks

• Check all seals on windows, doors, and appliances - According to the Energy Star program, most people could save about 20% on their heating and cooling costs by sealing up air leaks.
• Look for leaks in the basement - broken window panes, gaps around the dryer vent exhaust, cracks between the foundation and the wall, and more.
• Check gaps and cracks around doors and windows and along the baseboards, electrical outlets, and switches. Check the ceiling for leaks. Look for leaks between the door and the jamb.
• And lastly, don’t forget to check the door to the attic. This opening is usually uninsulated and unsealed, which is a significant source of air leakage.

To find out more about how you can fix the leaks and cracks by hiring a professional or DIY, click here.

7. Move Your Thermostat Back or Install a Programmable One

Set your thermostat between 68-72 F, while in summer, it may be better 73-78 F. Another option is to set your thermostat back 10 degrees while you’re asleep or away from home. A programmable thermostat can do this for you.

8. Don’t Leave the Door Open (like Mom Used to Say!)

Either you’re heating and cooling the indoors of your home or heating and cooling the outdoors.

Water Conservation

9. Buy Energy-Efficient Appliances

The next time you’re due for a new water heater, dishwasher, or washer/dryer, buy an energy-efficient model. Look for the Energy Star label to know which ones will save you money.

10. Take Shorter Showers or Even Navy Showers

The average American uses 80-100 gallons of water a day. Yikes!

1. Take shorter showers
2. Take a navy shower. Turn the water on, get wet, turn the water off, suds up and scrub, turn the water on, rinse, turn the water off.

Click here to read more about how to save energy in your bathroom.

11. Fix Your Leaky Plumbing

erplumbing.com tells us that a leaky shower head or faucet will cost you about $20 per month, cracks in pipes and pinhole-sized holes in pipes typically cost a household between $100-$600 a month, and a leaky toilet will cost you between $75-$150 on average per month.

Save between $240 - $7,200 per year by fixing your plumbing. Great idea!

12. Miscellaneous Tips

• Turn your computer off if you don’t use it often and, if you use it throughout the day, then put it in sleep mode as a practical setting for you and energy reduction.
• Do larger loads of laundry less often instead of smaller loads more often.
• Wash your clothes in cold or warm water.
• Use a clothesline on a beautiful day instead of your dryer
• If you have multiple electricity providers in your area, shop around, compare prices, and choose the least expensive option.

A Final Thought

Saving electricity is an excellent idea. It means saving money to you, but also by reducing your use of electricity you can help mitigate pollution and greenhouse gases.

Try to use some of the tips above. By doing so, you’ll not only have more money in your pocket, but you’ll be contributing to the health and well-being of the earth and her citizens.