10 Ways to Save Money on Your Electricity Bill

The average American household spends over $1,700 per year on electricity. That's a significant expense — and one that's largely within your control. Here are 10 proven ways to reduce your electricity bill without sacrificing comfort.

1. Buy Energy-Efficient Appliances

Your major appliances — refrigerator, washer, dryer, dishwasher, and HVAC — account for the bulk of your electricity use. Upgrading to ENERGY STAR certified models can reduce energy consumption by 10-50%. A new efficient refrigerator might save you $50-100 per year compared to a 15-year-old model. Over the appliance's lifetime, those savings often exceed the price difference.

Browse efficient refrigerators →

2. Use a Programmable Thermostat

Heating and cooling account for about 50% of a typical home's energy use. A programmable or smart thermostat can save 10-15% on heating and cooling costs by automatically adjusting temperatures when you're asleep or away. That's roughly $150 per year for the average home.

3. Switch to LED Lighting

LED bulbs use 75% less energy than incandescent bulbs and last 25 times longer. Replacing just 5 frequently-used bulbs can save $75 per year. LEDs now come in every shape, size, and color temperature — there's no reason to still be using incandescent or CFL bulbs.

4. Wash Clothes in Cold Water

About 90% of the energy used to wash clothes goes to heating the water. Switching to cold water for most loads can save $60-100 per year. Modern detergents are formulated to work just as well in cold water. Reserve hot water for heavily soiled items only.

5. Air Dry When Possible

Clothes dryers are among the most energy-hungry appliances in your home, using 3,000-5,000 watts. Air drying — even occasionally — can save $50-150 per year. Use a drying rack for lighter items and reserve the dryer for heavy fabrics like towels and jeans.

6. Seal Air Leaks

Air leaks around windows, doors, and ductwork can waste 20-30% of your heating and cooling energy. Weatherstripping and caulking are inexpensive fixes that pay for themselves within months. Common leak points include: window frames, door frames, electrical outlets, pipe penetrations, and attic hatches.

7. Use Power Strips for Electronics

"Phantom load" or "vampire power" — electricity used by devices when they're off but plugged in — can account for 5-10% of your bill. Smart power strips automatically cut power to devices in standby mode. Common culprits include TVs, game consoles, chargers, and cable boxes.

8. Run Full Loads Only

Dishwashers and washing machines use roughly the same energy regardless of load size. Running full loads instead of partial ones can reduce your number of cycles by 30-50%, saving both electricity and water. If you must run a small load, use the appropriate water level setting.

9. Maintain Your HVAC System

A dirty filter makes your HVAC system work harder, using more energy. Replace filters every 1-3 months. Schedule annual professional maintenance to ensure the system runs efficiently. A well-maintained system uses 15-25% less energy than a neglected one. Also check that vents aren't blocked by furniture or curtains.

10. Take Advantage of Time-of-Use Rates

Many utilities offer time-of-use pricing where electricity is cheaper during off-peak hours (typically nights and weekends). Shifting high-energy activities like laundry, dishwashing, and EV charging to off-peak times can save 10-20% on your bill. Check with your utility to see if this option is available.

How Much Can You Save?

Implementing all 10 of these tips could realistically save $400-800 per year for an average household. Even adopting just 3-4 of them can make a noticeable difference on your monthly bill. The key is to start with the biggest energy consumers — HVAC, water heating, and major appliances — then work your way down to smaller optimizations.

Use our calculator to see exactly how much your appliances cost to run →