12 ways to lower your high electric bill
12 ways to lower your high electric bill
If you’ve noticed a sudden spike in your electricity bill, you’re not alone. Many households are dealing with rising costs that can be frustrating and sometimes confusing. Ahead, Shipley Energy suggests what might be driving up your electricity bill and shares ways to lower it.
The answer to why your bill is so high is likely multifaceted since many issues can contribute to a hefty electric bill. Read on to learn more about energy usage and how to save, or design a low-rate energy plan now.
We’re here to help you uncover issues and provide you with some tips for lowering your electric bill so you can save money and move toward a more energy-efficient future. At any time you can use these quick links to jump around the article. Let’s get started.
Is my electric bill too high?
How much you should expect to spend on electricity depends on the type and size of your home, where you live, and other significant factors. While there is no particular dollar amount that signifies your bill is too high, a point of reference can be useful. It may help to know that in 2024, the average monthly electric bill in the U.S. was $140.56. If you would consider your household electricity use to be fairly average and your bill is much higher than this total, it could be too high.
If you’re worried about your electric bill being too high, chances are, you’ve seen the cost go up over time. There are many reasons why your bill could have increased or why it’s consistently staying too high.
10 reasons your electric bill is so high
What consumes the most electricity in your home?
If you’re trying to lower your electricity bill, addressing the biggest consumers of electricity will have the biggest impact on your bill. Heating and cooling systems, water heaters, and large appliances like washers, dryers, and refrigerators are among the biggest electricity consumers in most homes. Lighting, especially with traditional bulbs, also adds to your bill, as do entertainment systems and kitchen appliances like ovens and dishwashers. Read on to learn more about common pitfalls affecting your energy costs.
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1. Devices drawing phantom energy
Did you know that many of your appliances and electronics that plug in are drawing energy, even when they’re turned off? This energy is often referred to as a phantom load or standby power. Most electronics and appliances today are designed to be in a standby mode rather than truly off when not in use. A typical American household has 40 devices that are continuously drawing power, whether they’re on or off, adding up to nearly 10% of the family’s total electricity use.
2. Using old, inefficient appliances
Appliances today are designed to be more energy-efficient than older models. This means if you have old appliances in your house, they could be using excessive amounts of electricity. This includes dishwashers, ovens, refrigerators, freezers, clothes washers, dryers, water heaters, and many other appliances throughout your home. Two of the biggest culprits are refrigerators and clothes dryers. If your appliances are relatively old, it’s likely that they are not as efficient as they could be.
3. Lighting your home with traditional incandescent bulbs
If you’re using traditional incandescent bulbs in your light fixtures, you’re likely wasting energy. Energy-efficient lighting options, like light-emitting diodes (LEDs), compact fluorescent lamps (CFLs), and even halogen incandescent, use a lot less energy. So, if you’re wondering why your electricity bill is higher than your neighbor’s, it could be in part because their LED bulbs are using 80% less energy than your incandescent bulbs are.
4. Leaving lights or appliances on
If you’re not in the habit of turning off the lights, TV, and other appliances before leaving the house, you could be wasting energy while you’re away. If you have kids, it’s important to make them aware that leaving lights or electronics on unnecessarily wastes energy and money. Even while you’re at home, if it’s during daylight hours, you may not need lights on.
5. Putting significant demand on your HVAC system
For the average single-family household, heating accounts for up to 45% of annual utility costs, and cooling makes up 9%. If your HVAC system runs on electricity, then you’ll see higher totals on your electric bill, especially if you place a high demand on your HVAC system. This is one of the main reasons your electric bill will fluctuate seasonally. During harsh winter or scorching summer months, you can expect to use a lot more electricity for heating or cooling than you’ll use during milder times of the year.
6. Using a lot of hot water
Water heating usually makes up about 18% of a home’s energy use. Many common household chores and activities, like washing dishes, doing laundry, and taking showers, can use a lot of hot water. As you use up hot water, the water heater must use energy to heat more water. If your water heater uses electricity, then using a lot of hot water can lead to a high electric bill.
7. Staying indoors more
How much energy you use depends on how often you’re inside your home. The pandemic has caused energy customers to stay home more than ever. Many employees and students have been working remotely, and lots of events have been canceled. Those staying home, especially during the coldest and hottest parts of the year, are bound to have higher utility costs.
8. Greater use of devices
Those who are working or studying at home are not just lounging around—they’re using computers and other devices throughout the day. If the pandemic has sent you home, you might be relying on a desktop or laptop for upward of eight or more hours per day. Heavier use of devices is one reason your electricity bill may have shot up.
9. Using electricity during peak hours
Some utility companies instate what is called a time-of-use policy, where using electricity during certain hours will cost you more than if you used the same amount of electricity at a different time of day. The hours when electricity costs more are called peak hours, and there tends to be greater demand for electricity during these times. If you find yourself using electricity during peak hours, you can expect to see a higher bill.
You might be using electricity during peak hours more often, thanks to the pandemic. With COVID-19 restrictions, you were probably more likely to be home during those hours. Keep in mind peak hours vary by supplier, time of year, and other factors. For instance, winter peak hours tend to be in the morning, while summer peak hours tend to be in the afternoon or evening.
10. Increased electricity rate
Electricity rates, measured in the cost per kilowatt-hour (kWh), vary from location to location and supplier to supplier. Rates can also fluctuate seasonally. In the summer, for instance, you may see a higher total on your bill even if you used the exact same amount of electricity as you did in the spring. If you’re noticing consistently high rates, you may want to switch suppliers. Many people get their electricity supplied by their utility company, but in deregulated states, you have the option to compare rates and switch suppliers.
12 ways to lower your electric bill
Electricity bills can sneak up on you, especially when the seasons change or when household needs shift. But with some small adjustments, you can make a real dent in those costs.
Here are 12 ways to bring down your electricity bill and keep your home running efficiently:
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1. Conduct an energy audit
One of the best ways to get some insight into how to save money on your electric bill is through an energy audit. The auditor will learn about your home’s appliances and electricity use and then make recommendations for increasing your efficiency. You can also conduct a DIY audit, but a professional one is the best option.
2. Unplug electronics and appliances
Unplug electronics and appliances when you’re not using them rather than just turning them off. Plugging electronics into a power strip makes it easier to cut off power to all the electronics at once and then turn them back on when you’re ready. Eliminating the phantom load electronics use could save you as much as 10% on your next electric bill.
3. Upgrade old appliances
Another way you can save is by switching out old energy-draining appliances for newer, more efficient models. Newer appliances typically offer superior energy efficiency that could lower your energy costs substantially over time.
4. Install dimmer switches
An excellent solution for using less light is to use dimmer switches. With a dimmer switch, you can set a light fixture to only provide as much light as you need. As you lower the amount of light, you also lower the amount of electricity going to the bulb and can cut back on your overall lighting costs.
5. Switch to energy-efficient light bulbs
According to the U.S. Department of Energy, you could save $75 a year just by replacing five light bulbs in your house that you use the most with ENERGY STAR bulbs. Especially if you choose CFL or LED bulbs, you can also enjoy significantly longer periods between replacing bulbs since they last much longer than traditional incandescent bulbs.
6. Adjust the thermostat
When you’re away from home, adjust your thermostat so your HVAC system doesn’t need to work as hard. If you adjust your thermostat by 7 degrees or 8 degrees to be closer to the outdoor temperature for eight hours every day, you could save 10% on your heating and cooling costs. A programmable thermostat can help you do this.
7. Install ceiling fans
If you find yourself spending a lot on cooling your home during hot weather, try installing ceiling fans. With a ceiling fan going, you can raise your thermostat setting and enjoy the same comfort level as you did with a lower setting and no fan.
8. Change your HVAC filter regularly
An HVAC system has to work harder and, therefore, use more energy when the filter is clogged or dirty, so make sure you’re checking your filter regularly and changing it as soon as it’s dirty. Typically, you’ll want to change filters at least every three months.
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9. Air dry dishes and laundry
Since a drying feature on a dishwasher and a clothes dryer can use a lot of energy, you can save money by avoiding them. For dishes, allow them to air dry or use a dishcloth to dry them by hand as you put them away. For laundry, use a clothesline outside or a drying rack inside to let clothes air dry.
10. Lower your water heater setting
Many water heaters are set to 140 F by default. However, for most households, 120 F is sufficient to handle hot water needs, meaning you’re wasting energy to maintain that high temperature. Just by lowering the setting to 120 F from 140 F, you could automatically save yourself from $36 to $61 in standby heat losses and over $400 in demand losses over the course of a year.
11. Use a low-flow shower head
If you’re using a lot of hot water in the shower, putting a lot of demand on your water heater, one solution is to take shorter showers. That’s not the only solution, though. You can shower for the same length of time and still use a lot less water by installing a low-flow showerhead with the WaterSense label.
12. Plan for off-peak hours
If you’re dealing with a time-of-use policy from your utility company, you should do your best to avoid using electricity during peak hours. Plan to run your dishwasher or wash and dry clothes, for instance, during off-peak hours so you won’t be charged as much.
Shop for a new electricity supplier
In many cases, you can decrease electricity costs by switching suppliers. A new supplier may be able to purchase electricity at a lower rate and pass on those cost benefits to you. Switching may also allow you to choose more favorable contract terms—for example, if you’ve seen your rates increase in a variable-rate contract, you might benefit from a fixed-rate contract. In a fixed-rate contract, your rate will stay the same for the duration of your agreement, no matter what your supplier has to pay.
Of course, your supplier might not be the only reason your electricity bills are high. How and when you use electricity can have an impact, as well. It’s a good idea to look at the whole picture and consider every possible factor to generate the most savings.
This story was produced by Shipley Energy and reviewed and distributed by Stacker.
