How to Lower Your Electric Bill: 30 Ways That Work (2026)

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The envelope comes, or the app pings, and the number is bigger again. You didn’t buy a hot tub. You didn’t leave the windows open all winter. You just lived in your house, and it cost more than last year. You’re not imagining it: the average U.S. home price for electricity was 18.31 cents per kilowatt-hour in July 2026, 4.9% higher than a year earlier, according to the U.S. Energy Information Administration (EIA).

In short: to lower your electric bill, start with heating and cooling, because air conditioning, space heating and water heating are the three biggest electricity uses in U.S. homes. Set your thermostat back 7 to 10°F for 8 hours a day (up to 10% off heating and cooling, per the Department of Energy), seal air leaks, switch to LEDs, wash in cold water, cut standby power, then check your rate plan and local rebates.

This page starts our Energy Saving & Lower Bills section: where the money goes, 30 ways to spend less (free ones first), how to get help paying a bill, and the few tools that make saving easier. Every savings figure names its source; our own math is labelled as an estimate.

Lowering your electric bill at a glance

• The big three: air conditioning used 19% of home electricity in 2020, space heating 12% and water heating 12% (EIA, Residential Energy Consumption Survey). Lighting and refrigerators come next.
• Free and fast: thermostat setbacks, ceiling fans, cold-water laundry, a 120°F water heater, closed curtains at the right time and unplugging idle electronics.
• Cheap and worth it: LED bulbs, weatherstripping, window film in winter, a smart plug or plug-in meter to find energy hogs, and a smart thermostat (ENERGY STAR puts average savings at about 8% of heating and cooling bills, or $50 a year).
• Bigger projects: air sealing plus insulation (an average of 15% off heating and cooling, per ENERGY STAR), duct sealing, and replacing electric resistance heat with a heat pump.
• The bill itself: time-of-use plans, budget billing, LIHEAP and weatherization help, and state or utility rebates. There are no federal tax credits for home efficiency work completed in 2026.

Why your electric bill keeps going up

Two things set your bill: how many kilowatt-hours (kWh) you use and what you pay for each one, plus any fixed monthly charge. You control the first. The second has been rising. EIA’s September 2026 Short-Term Energy Outlook expects the average residential price to reach 18.2 cents per kWh for 2026, up from 17.3 cents in 2025. For summer 2026 (June to August), EIA forecast an average bill of $196 a month, up 5.8% from $185 the summer before.

Use is the other half. The average U.S. residential customer bought 10,791 kWh in 2022, about 899 kWh a month, but that ranged from 14,774 kWh a year in Louisiana to 6,178 kWh in Hawaii (EIA). At July 2026’s average price, 899 kWh costs about $165 before fixed charges (our estimate: 899 × $0.1831). Every 100 kWh you trim is worth roughly $18 a month at that price; your own rate is on your bill.

First, read your bill

• kWh used this month and the same month last year. Most utilities print a 12- or 13-month chart. Big summer spikes point at cooling; big winter spikes point at electric heat.
• Your price per kWh. Add up the supply and delivery charges and divide by the kWh. That’s the number to use when you work out what an upgrade saves.
• Your rate plan. Flat, tiered or time-of-use? On a time-of-use plan, when you use power matters as much as how much. See time-of-use rates explained.
• Fixed charges. The customer or service charge doesn’t move no matter what you do. Don’t count it when you judge your savings.

Where the electricity goes in a typical home

EIA’s 2020 Residential Energy Consumption Survey (its most recent detailed survey) is the best national picture. The shares change with the weather each year and vary a lot by home: an all-electric house in Minnesota and a gas-heated apartment in Phoenix look nothing alike.

Use	What the sources say	Best first moves
Air conditioning	19% of home electricity in 2020 (EIA)	Thermostat higher when away, ceiling fans, shading windows, filters, duct sealing
Space heating	12% of home electricity in 2020 (EIA); 42% of households heated mainly with electricity in 2024 (EIA)	Setbacks, air sealing, insulation, heat pump instead of resistance heat
Water heating	12% of home electricity in 2020 (EIA); about 18% of a home’s energy use (DOE)	120°F setting, low-flow showerheads, cold-water laundry, heat pump water heater
Lighting	One of the next two largest uses (EIA); about 15% of an average home’s electricity (DOE)	LEDs, timers, motion sensors outdoors
Refrigerators	One of the next two largest uses (EIA)	Retire the old second fridge, keep coils and door seals clean
Standby (“phantom”) power	5 to 10% of residential electricity in most developed countries (Lawrence Berkeley National Laboratory)	Smart plugs, power strips with switches, unplug idle devices

Effort should follow money: new bulbs help, but a few degrees on the thermostat or a sealed attic usually helps more. Our guide to what uses the most electricity goes appliance by appliance.

Free ways to lower your electric bill (do these this week)

1. Set your thermostat back when you sleep or leave

DOE says you can save as much as 10% a year on heating and cooling by turning your thermostat back 7 to 10°F for 8 hours a day from its normal setting. In winter it suggests around 68 to 70°F while you’re awake and lower while you’re asleep or away; in summer, warmer than normal when you’re out and as high as is comfortable when you’re home. DOE also clears up a common myth: your system doesn’t “work harder” to recover and cancel the savings. A cooler house in winter simply loses heat more slowly.

Heat pump owners: DOE says deep setbacks in heating mode can make a heat pump run inefficiently, so a moderate setting is usually the cheapest choice unless your thermostat is designed for heat pumps. More in the best thermostat settings for winter and summer.

2. Don’t crank the AC colder to cool faster

Setting the thermostat lower than normal when you switch on the air conditioner won’t cool the house any faster, DOE says. It just risks overcooling and wasted money.

3. Use ceiling fans, and turn them off when you leave

A ceiling fan lets you raise the thermostat about 4°F without feeling less comfortable, according to DOE. Run it counterclockwise in summer and clockwise on low in winter. Fans cool people, not rooms, so switch them off in empty rooms.

4. Work your curtains and blinds with the sun

DOE says about 76% of the sunlight that falls on standard double-pane windows enters as heat. In summer, close coverings on sunny windows during the day. In winter, open south-facing curtains in the daytime to let the sun in and close them at night.

5. Turn the water heater down to 120°F

DOE recommends 120°F for comfortable hot water for most uses, and notes the Consumer Product Safety Commission recommends no more than 120°F to prevent scalding. Many tanks leave the factory set higher. If you have an electric water heater, this is one of the easiest savings in the house.

6. Wash clothes in cold water

ENERGY STAR says water heating takes about 90% of the energy a clothes washer uses, and that going from hot to warm cuts that energy in half; cold cuts it further. Unless you’re fighting oily stains, cold water does the job.

7. Run full loads and skip extra drying

DOE’s advice: wash full loads of dishes and clothes, and don’t over-dry. Use the dryer’s moisture sensor if it has one.

8. Hunt down standby power

Lawrence Berkeley National Laboratory puts standby power at 5 to 10% of residential electricity in most developed countries. Game consoles, cable boxes, old chargers, printers and the TV area are the usual suspects. On an 899 kWh month at 18.31 cents, 5 to 10% is roughly $8 to $16 (our estimate). Read phantom power: what uses electricity when it’s off.

9. Keep heat away from the thermostat

DOE warns that lamps or a TV near a thermostat make the AC run longer, because the thermostat senses their heat. Keep registers clear of furniture too.

10. Check the filter

ENERGY STAR says to inspect, clean or change the filter in your furnace, central AC or heat pump once a month, because a dirty filter can raise energy costs and damage your equipment.

Cheap upgrades that pay back fast

11. Switch every bulb you use often to LED

DOE says LEDs use up to 90% less energy and last up to 25 times longer than incandescent bulbs. A common 60 W-equivalent LED draws 8.5 W. Swap one 60 W incandescent you use 3 hours a day and you save about 56 kWh a year, roughly $10 at 18.31 cents (our estimate). Start with the kitchen, living room and porch lights. Our picks: best LED light bulbs.

12. Weatherstrip doors and windows

DOE calls air sealing a cost-effective way to cut heating and cooling costs, and caulk and weatherstripping are where most people start. Feel for drafts on a windy day around doors, windows, attic hatches and outlets on outside walls.

13. Add window film or insulating shades for winter

DOE says about 30% of a home’s heating energy is lost through windows. It suggests clear plastic film taped tightly inside the frame in winter, and notes that tightly fitted cellular shades can cut heat loss through windows by 40% or more, about 10% in heating energy. See best window insulation film.

14. Measure before you guess

A $30 plug-in meter tells you exactly what the old fridge, the dehumidifier or the space heater costs. An energy-monitoring smart plug does the same through an app and can switch a device off on a schedule. A whole-home monitor in the panel shows every circuit. See best energy monitors and best energy monitoring smart plugs.

15. Install a smart thermostat

ENERGY STAR says certified smart thermostats save about 8% of heating and cooling bills, or $50 a year on average, and more depending on climate, habits and equipment. The value is that the setbacks happen without you remembering. Start at our smart thermostats guide or see whether smart thermostats really save money.

16. Put in a low-flow showerhead (if your water heater is electric)

DOE says low-flow fixtures cost about $10 to $20 each and can save 25 to 60% of water. Less hot water means less energy. Its test: if a shower fills a 1-gallon bucket in under 20 seconds, a low-flow head would help.

17. Unplug the second fridge or freezer

An old fridge in a hot garage is a classic hidden cost. Measure it for a week with a plug-in meter; if it mostly holds drinks, retire it.

18. Switch outdoor lights to sensors and timers

DOE recommends LEDs for outdoor lights that stay on a long time, ideally ENERGY STAR fixtures with daylight shut-off and motion sensors.

Bigger projects with the biggest savings

19. Air seal and insulate the attic

ENERGY STAR estimates homeowners save an average of 15% on heating and cooling costs, or 11% of total energy costs, by air sealing and adding insulation in attics, floors over crawl spaces and basements. Many attics are a weekend DIY job: see best DIY attic insulation. Seal the leaks first, then insulate.

20. Seal leaky ducts

In a typical house, about 20 to 30% of the air moving through the ducts is lost to leaks, holes and poor connections, according to ENERGY STAR. Ducts in an attic or crawl space waste the most. You can seal the joints you can reach with mastic or foil tape; a heating and cooling contractor can test and seal the rest.

21. Replace electric resistance heat with a heat pump

If you heat with baseboards, an electric furnace or space heaters, this is the biggest single move. DOE explains that a heat pump rated 10.3 HSPF delivers 10,300 Btu of heat per kWh, while electric resistance heat delivers only about 3,400 Btu per kWh. In a Northeast Energy Efficiency Partnerships study cited by DOE, cold-climate heat pumps saved about 3,000 kWh a year compared with resistance heat. Installation of ducted systems and refrigerant lines is a job for a licensed HVAC pro, with a permit where required. Start at our heat pumps guide.

22. Replace an electric tank with a heat pump water heater

DOE has said heat pump water heaters can cut water heating costs by an average of 50% compared with standard electric models. They need room around them and, for most 240 V models, a licensed electrician and plumber. See best heat pump water heaters.

23. Buy ENERGY STAR when something wears out

DOE says ENERGY STAR clothes washers use about 25% less energy and 35% less water than standard ones, ENERGY STAR dryers use 20% less energy, and heat pump dryers can save 20 to 60% more than conventional dryers. Don’t replace a working appliance just to save energy unless it’s very old; replace smart when it fails. Our guides: energy efficient window ACs, dehumidifiers, heat pump dryers and induction cooktops.

24. Heat one room, not the whole house (carefully)

Every 1,500 W electric space heater turns electricity into the same amount of heat; no model is “more efficient” at that. It saves money only if you turn the central heat down and warm the one room you’re in. At 18.31 cents, 1,500 W costs about 27 cents an hour (our estimate). Follow the U.S. Fire Administration’s rules: keep anything that can burn at least 3 feet away, and turn the heater off when you leave the room or go to bed. See best space heater for a low electric bill.

25. Get a home energy assessment

A professional assessment (often with a blower-door test) finds the leaks and insulation gaps you can’t see. Many utilities offer them free or at a discount. DOE says combining good maintenance and upgrades with the recommended insulation, air sealing and thermostat settings can save about 30% on your energy bill.

Lower the bill itself: rates, programs and help

26. Compare your rate plans

Many utilities offer time-of-use plans that charge less at night and more in the late afternoon and evening. They pay off if you can move laundry, dishwashing and EV charging to off-peak hours, and cost you more if you can’t. Ask your utility for a rate comparison based on your own usage; many will run one for you.

27. Join a demand-response or smart thermostat program

Some utilities pay a credit or rebate if you let them nudge your thermostat a few degrees during a handful of peak hours a year. Terms vary by utility; read the opt-out rules first. See smart thermostat rebates.

28. Use budget billing to flatten the spikes

Budget billing doesn’t lower your yearly total, but it spreads summer and winter peaks into equal monthly payments.

29. Apply for LIHEAP and weatherization help if money is tight

The Low Income Home Energy Assistance Program (LIHEAP) can help pay heating or cooling bills or cover emergency services in an energy crisis, says USA.gov. You apply through your state or territory’s office. The Weatherization Assistance Program pays for home improvements that lower energy costs, with eligibility based on income or enrollment in programs such as TANF or SSI. USA.gov’s help line is 1-844-USAGOV1 (1-844-872-4681). Many utilities also have hardship programs and payment plans: call before the bill is overdue.

30. Check rebates before you buy anything big

The federal 25C credit for heat pumps, insulation, windows, doors and energy audits ended for work completed after December 31, 2025, so there is no federal tax credit for these projects in 2026. State programs (including the home energy rebate programs some states run with federal funds) and utility rebates still exist in many places. Search the ENERGY STAR Rebate Finder and DSIRE, and call your utility. Never count on money until the program confirms it. Our home energy rebates guide explains how to find them.

What not to waste money on

Be wary of small plug-in boxes that promise to cut your bill by a big percentage. A box in an outlet can’t change how much energy your air conditioner, water heater or fridge needs. Our page on electricity saving device scams explains the claims. Real savings come from heating, cooling and hot water, a few percent at a time.

Seasonal plans

Bills peak in summer and winter, and the best moves differ. Our step-by-step guides: how to lower your electric bill in summer (cooling, shading, fans, AC upkeep, time-of-use) and how to lower your electric bill in winter (heating, drafts, windows, heat pumps, space heaters, water heating).

Tools that make saving easier

Prices change often. The prices below are what we saw at the maker or a major retailer in October 2026; check the current price before you buy.

• Kill A Watt P4400: plug the appliance into it and it shows watts and total kWh. Leave it on the old fridge for a week and multiply by your rate. Max 15 A, 1,875 VA.
• Kasa EP25: tracks a device’s use by day, week and month in the app and can switch the TV corner off overnight. 2.4 GHz Wi-Fi only.
• Emporia Vue 3: clamps on your main lines and up to 16 circuits inside the breaker panel, so you see the AC, the water heater and the dryer separately. Panel work is for a licensed electrician for most people. Sense, the other well-known monitor, said it would stop selling its monitor at the end of 2025.
• ecobee Smart Thermostat Enhanced: ENERGY STAR certified, with a built-in occupancy sensor so it can set back when nobody’s home. Check that your system’s wiring is compatible before you buy.
• GE Relax LED: 800 lumens (the light of a 60 W bulb) from 8.5 W, dimmable, in a warm 2700K.
• Frost King R338H: a 10 ft roll of self-stick foam for doors and windows with small gaps.

Check the Kill A Watt P4400 price on Amazon

Check the Kasa EP25 smart plug price on Amazon

Check the Emporia Vue 3 price on Amazon

Check the ecobee Smart Thermostat Enhanced price on Amazon

Which guide do you need?

If you want to…	Read
Cut a summer bill	Lower your electric bill in summer
Cut a winter bill	Lower your electric bill in winter
Find what’s using the power	What uses the most electricity, best energy monitors (+ Emporia vs Sense), energy monitoring smart plugs
Stop paying for devices that are “off”	Phantom power
Understand your rate	Time-of-use rates explained
Fix drafts and heat loss	Window insulation film, DIY attic insulation
Buy efficient gear	LED bulbs, window ACs, dehumidifiers, induction cooktops, space heaters
Avoid scams	Electricity saving device scams
Control heating and cooling	Smart thermostats, heat pumps
Find money for upgrades	Home energy rebates

Keep exploring: all our energy-saving articles are in Energy Saving Tips. If you’re thinking beyond the bill, see solar panels for home, home battery backup and portable power stations. For the basics behind it all, read electrical energy, thermal energy and types of energy.

Questions about lowering your electric bill

What is the fastest way to lower my electric bill?

Change your thermostat habits. Heating and cooling are the biggest electric uses in most homes, and DOE says setting the thermostat back 7 to 10°F for 8 hours a day can save up to 10% a year on them. Add ceiling fans, a 120°F water heater and cold-water laundry.

What uses the most electricity in a house?

Nationally, air conditioning (19% of home electricity in 2020), space heating (12%) and water heating (12%), according to EIA’s Residential Energy Consumption Survey. Lighting and refrigerators come next. In your house the order depends on climate and whether you heat and heat water with electricity or gas. A plug-in meter or panel monitor shows your own numbers.

Does unplugging things really save money?

A little, and it adds up. Lawrence Berkeley National Laboratory estimates standby power at 5 to 10% of home electricity in most developed countries. Phone chargers barely matter; cable boxes, game consoles, older TVs and computer setups matter more. A smart plug or a power strip with a switch makes it painless.

Is it cheaper to leave the AC on all day?

Usually not. DOE says a warmer house gains heat more slowly, so raising the setting while you’re out saves energy, and the system doesn’t have to “work harder” enough to cancel it. A smart or programmable thermostat can start cooling shortly before you get home so you don’t walk into a hot house.

Are there federal tax credits to lower energy bills in 2026?

Not for home efficiency upgrades. The 25C credit for heat pumps, insulation, windows, doors and audits and the 25D credit for solar and batteries ended for work completed after December 31, 2025. State programs, utility rebates and help such as LIHEAP and weatherization still exist; check your state and utility before you buy.

Do energy saving boxes work?

Be very skeptical of plug-in “power saver” boxes that promise big savings. They can’t change how much energy your heating, cooling, water heating or fridge needs. Spend the money on LED bulbs, weatherstripping or a smart thermostat instead.