How to Lower Your Utility Bills: 15 Changes Ranked by Savings

The biggest utility savings come from heating and cooling (thermostat settings and air leaks), then water heating, then the appliances that run all day. Lighting and unplugging chargers help, but much less. Start by knowing what normal looks like: the average utility bills by state page shows typical electricity, gas and water costs where you live.

How to estimate any saving

Electricity saving = watts saved ÷ 1,000 × hours per day × 365 × your rate per kWh. At 17¢ per kWh, a 100-watt load running 24 hours a day costs 100 ÷ 1,000 × 24 × 365 × $0.17 = $148.92 a year. The electricity cost calculator does this for any appliance, and the electric bill calculator rebuilds your whole bill from usage.

Heating and cooling (usually the biggest share)

1. Set back the thermostat 7–10°F for 8 hours a day (overnight or while you're out). The US Department of Energy estimates up to about 10% a year off heating and cooling.
2. Seal air leaks around doors and windows with weatherstripping and caulk. Cheap, and noticeable in a drafty home.
3. Replace or clean the HVAC filter every 1–3 months; a clogged filter makes the system run longer.
4. Use ceiling fans to feel cooler at a higher thermostat setting in summer.
5. Close curtains on hot afternoons and open them on sunny winter days.

Water heating

6. Set the water heater to 120°F if it's higher; many ship at 140°F.
7. Fit a low-flow shower head: it cuts hot water use, so it saves on both the water and the energy bill.
8. Wash clothes in cold water. Most of a washer's energy goes into heating water.
9. Fix dripping hot taps promptly. The water bill calculator shows what water use costs.

Appliances and electronics

10. Find the always-on loads. A plug-in usage monitor shows what each device draws on standby; an old second fridge or freezer is often the worst.
11. Switch remaining bulbs to LED. A 60 W incandescent replaced by a 9 W LED used 3 hours a day saves 51 ÷ 1,000 × 3 × 365 × $0.17 = about $9.49 a year per bulb.
12. Use smart power strips or timers for TVs, consoles and computer setups.
13. Run the dishwasher and dryer only when full, and clean the dryer lint filter every load.

The bill itself

14. Check your rate plan. Time-of-use plans pay off if you can shift laundry and dishwashing to off-peak hours; budget billing smooths the bill without lowering it.
15. Ask about assistance and discounts: low-income programs, medical equipment discounts and weatherization help exist in most states.

Track whether it worked

Compare the same month year over year, since weather drives most of the swing. Keep each month's amount in your bill tracker and the history shows the trend. If a bill keeps rising anyway, the bill increase calculator shows what the increase costs over a year, which is useful when you call the provider.