
Keeping track of your daily electricity usage can help you save money and better understand your bills. There are several ways to measure your electricity usage, such as using a plug-in power meter or an electrical sub-meter. You can also calculate your power consumption by using formulas or online calculators. Some devices and appliances can also help you save on electricity, such as smart thermostats and energy-efficient appliances.
| Characteristics | Values |
|---|---|
| Factors affecting electricity usage | Air conditioning, space heating, and water heating are the top sources of electricity consumption in residential U.S. homes. |
| Calculating electricity usage | Multiply the device's wattage by the number of hours it was used to get the total kWh. |
| Reducing electricity usage | Turn off lights and unplug electronics when not in use, lower water heater temperature, switch to energy-efficient appliances, and use smart thermostats. |
| Tools for measuring electricity usage | Plug-in power meters, electrical sub-meters, energy monitors, clamp meters, and smartphone apps. |
| Understanding electricity bills | Compare monthly bills to identify high-usage periods and look for delivery fees, electricity supply charges, taxes, and surcharges. |
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What You'll Learn

Calculate your power consumption
To calculate your power consumption, you can use a few different methods and devices. One simple way is to use a plug-in power meter, which can measure any device with a standard 10-amp power plug, such as a hairdryer, kettle, or phone charger. You plug the meter into an electrical outlet and then plug your appliance into it. The meter will show you readings for watts, kilowatt-hours, and cost.
However, plug-in power meters can't measure 'hard-wired' appliances, such as electric hot water systems. For these, you'll need to install an electricity usage monitor, which provides real-time data on your total power consumption. These are usually installed at your main electricity meter board.
Another option is to use an electrical sub-meter, which is useful for metering power usage in a particular area or for a large appliance with its own power circuit, such as EV chargers, air conditioners, or hot water systems.
If you're looking for a more comprehensive solution, devices like Vue or Sense can provide a breakdown of energy usage on all your circuits. For example, Vue can alert you if your oven has been on for more than a certain amount of time.
Additionally, if you have solar panels, you can use an app on your smartphone to monitor your power generation and consumption.
Beyond devices, you can also calculate your power consumption by hand using a few simple formulas. For example, if a device uses 100 watts over 10 hours, it would utilize 1 kilowatt-hour (kWh) of energy (as 100 x 10 = 1,000 = 1 kW). Most home energy costs are calculated in kWh, and you are typically charged a few cents per kWh. So, if the cost is $0.25 per kWh, a 40-watt bulb used for 25 hours (1 kWh) would cost $0.25.
Finally, you can also get a sense of your power consumption by simply comparing your monthly electricity bills, though this won't help you isolate specific devices that contribute to your energy usage.
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Understand your electricity bill
Understanding your electricity bill is key to managing your energy budget. The complexity of your bill will vary based on your location and utility, but there are several common components that everyone should understand.
Electricity bills typically include two main charges: supply and distribution/transmission. Your bill will show how much electricity you pulled from the grid, and you will be charged based on your usage. This is usually measured in kilowatt-hours or kWh. One kWh is the equivalent of one kilowatt (1 kW) of power sustained for one hour. A device rated to use 1 kW of power, operating for one hour at that level, sustains 1 kWh of energy. The kWh is how most home energy costs are calculated, and you are typically charged a few cents per kWh.
If you have solar panels installed, your consumption will be lower, and you will owe less to your utility company. Your bill may also include other municipal bills, such as gas or water. Some utilities charge consumers with a tiered billing structure, demand charges, or time-of-use rates, which can make your bill more difficult to understand.
To calculate the electricity usage of each appliance or device, you will need to know the wattage of the appliance, the average number of hours it is used per day, and the price you pay per kilowatt-hour (kWh) of electricity. You can then multiply the rate you pay per kWh by the number of kilowatt-hours your home has used during the month to calculate your total cost.
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Identify energy-intensive appliances
The first step to saving on your electricity costs is to identify the appliances that are using the most energy. The largest electricity consumer in the average household is heating and cooling appliances, such as air conditioners and heaters, which are used to keep your home at the right temperature. Heating generally uses more electricity throughout the year, accounting for 25% or more of your annual electricity usage. Electric water heaters are also a significant source of energy consumption, as they are used for various activities such as showering, washing dishes, and laundry.
Kitchen appliances, including ovens, hobs, kettles, and microwaves, account for around 4% of your energy bill. Electric ovens, in particular, are responsible for about 3% of your monthly electricity usage. Fan-assisted ovens and microwave ovens are more energy-efficient options, as they cook food at lower temperatures and heat only the food, not the air space inside.
Washing machines, dishwashers, and tumble dryers are also energy-intensive appliances, accounting for 14% of a typical energy bill. The power required to heat the water or air inside these appliances contributes to their high energy consumption.
Fridges and freezers are constantly running to maintain a constant temperature, accounting for around 13% of the average household's energy bill. Older fridges may use up to 2,000 kWh per year, while a newer model may use only 350 kWh annually.
To identify the energy efficiency of your appliances, look for labels and ratings such as the ENERGY STAR® label, which indicates that an appliance meets the minimum energy efficiency requirements. The Energy Guide sticker displays the appliance's average energy consumption and cost. You can also calculate energy consumption by using a meter or smart plugs, which can help monitor individual appliance usage.
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Use energy-efficient alternatives
One of the most effective ways to reduce your daily electricity usage is to adopt energy-efficient alternatives. While this may require a higher upfront investment, energy-efficient appliances and electronics typically consume less energy and save you money in the long run.
Start by looking for the Energy Star label when purchasing new appliances. Energy Star-certified products, such as washers, dryers, and refrigerators, are designed to use less energy and water than standard models. For example, Energy Star washers and dryers use 20% less energy and 33% less water than conventional machines, while Energy Star refrigerators consume 9% less energy.
Traditional incandescent light bulbs are another common source of high electricity consumption. Instead, opt for energy-efficient LED light bulbs, which use 75% less energy and have a much longer lifespan, resulting in significant cost savings over time.
To further reduce your electricity usage, consider investing in smart home technology. Smart thermostats, for instance, can help you manage your heating and cooling systems more efficiently, allowing you to adjust temperatures when you are away from home or set schedules to automatically turn down the heat or air conditioning when it's not needed.
Additionally, electronic media devices, such as televisions, computers, and gaming consoles, contribute significantly to your overall energy usage. Be mindful of leaving these devices on standby mode, as this still draws power. Advanced power strips can help mitigate this issue by shutting off power to electronics when they're not in use, preventing "vampire loads" or "phantom energy" from driving up your electricity bill.
Lastly, if you're a homeowner, consider exploring renewable energy sources such as solar panels, wind turbines, or geothermal power. These alternatives can reduce your dependence on the national grid and provide you with clean, renewable energy, helping to lower your electricity costs and your environmental impact.
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Install an electricity usage monitor
If you want to keep a close eye on your daily electricity usage, you can install an electricity usage monitor. These devices are small and are installed in the circuit breaker panel of a house or apartment. They provide load disaggregation, which means they can trace which devices in your home are drawing power and how much they're using.
There are several types of whole-house monitoring systems available:
- Current sensors that clip onto wires in your electrical panel. It is recommended that an experienced electrician installs these sensors onto individual circuits in the main breaker box.
- Optical sensors that attach to your existing meter. You can attach these sensors yourself without needing to hire an electrician.
If you have solar panels, you can use an app on your smartphone to read instantaneous power generation, peak power, and total energy for units of an hour, day, month, year, or the total lifetime of the panels.
If you're looking for a cheaper option, you could get a clamp meter to measure each load while it's running. The Emporia device is a permanent install of 16 clamp meters, while the Sense monitor uses machine learning to identify individual appliances and their power draw.
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Frequently asked questions
You can calculate your daily electricity usage by using a plug-in power meter. Plug the meter into an electrical outlet and then plug your appliance into it. It will show you watts, kilowatt-hours, and cost.
Kilowatt-hours (kWh) are how most home energy costs are calculated. You're typically charged a few cents per kWh. So, if a 40-watt bulb is used for 25 hours, it consumes 1 kWh of energy and costs $0.25.
You can lower your electricity usage by decreasing how often electronics and appliances are running in your home. Turn off lights and unplug electronics when they're not in use. You can also lower the temperature on your water heater to 120 degrees Fahrenheit, which will reduce electricity usage and slow buildup in your pipes.
Tools like the Vue or Sense module can provide a breakdown of energy usage on your circuits. You can also use a clamp meter to measure each load while it's running. Solar panels with a smartphone app can also help you monitor instantaneous power generation and total energy usage.











































