Molly Ayala
Reducing electricity costs in your home can save you money, increase energy security, and reduce pollution from non-renewable energy sources. The average electric bill for US residential customers in 2023 was $137 per month, or about $1,600 per year, according to the US Energy Information Administration. There are many ways to reduce electricity costs, including improving energy efficiency through the use of energy-efficient appliances and lighting, reducing phantom loads or vampire loads, and taking advantage of off-peak electricity rates. Understanding what uses the most electricity in your home, such as heating and cooling, water heating, lighting, and household appliances, is the first step in identifying areas where you can make changes to reduce your electricity consumption and lower your bills.
| Characteristics | Values |
|---|---|
| Heating and cooling | Purchase energy-efficient electric systems and operate them efficiently. Incorporate passive solar design concepts into your home, which include using energy-efficient windows. Properly insulate and air seal your home. Select an energy-efficient heating system that doesn't use electricity. |
| Water heating | Purchase an Energy Star heat pump water heater and operate it efficiently. Turn down the hot water tank to 120 degrees. Insulating your hot water pipes and installing a water heater insulation blanket on your tank will also help reduce energy consumption. |
| Lighting | Use energy-efficient LED light bulbs. |
| Appliances and electronics | Purchase energy-efficient products and operate them efficiently. Use an advanced power strip to reduce "phantom loads"—electricity wasted when electronics are not in use. Energy Star-rated appliances use 10 to 50 percent less electricity than non-Energy Star appliances. |
| Home energy audit | Conduct an energy audit to identify ways to reduce energy usage, such as faulty seals on windows and doors or leaky ductwork. |
| Other | Avoid using a tumble dryer for your clothes. Line drying your clothes can save money. Reduce shower time. Turn off appliances at the plug when not in use. Only boil the amount of water you need in the kettle. Wash your clothes on a 30°C cycle and reduce the number of cycles. Only run your dishwasher when it's full. |
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What You'll Learn
Buy energy-efficient products and operate them efficiently
When it comes to appliances and electronics, purchasing energy-efficient products and using them efficiently is key to reducing electricity costs. Here are some detailed tips to help you achieve this:
Appliances and Electronics
Look for the Energy Star label when purchasing new appliances. These products use 10-50% less electricity than non-Energy Star appliances, leading to significant savings over time. Examples include Energy Star washing machines and dishwashers, which also help conserve water. You can use the appliance and electronics calculator on Energy.gov to estimate the energy usage of specific devices. Additionally, consider using an advanced power strip to reduce "vampire loads," which refers to electricity wasted when electronics are not in use.
Lighting
Invest in energy-efficient lighting options, such as LED bulbs. LEDs can reduce electricity usage by 30% per bulb and have a longer lifespan than CFLs. Incorporate more natural lighting into your home by utilizing energy-efficient windows and skylights, which can provide additional illumination during the day.
Space Heating and Cooling
Purchase energy-efficient electric systems and operate them efficiently. Consider using ceiling fans instead of air conditioning whenever possible, as they use significantly less energy and help circulate air effectively. During milder weather, simply opening windows or creating a cross breeze can be a cost-free way to regulate temperature.
Water Heating
Opt for an Energy Star heat pump water heater, which can offer substantial savings compared to standard electric water heaters. These heaters may have a higher upfront cost, but tax credits and rebates can help offset the initial expense.
By following these tips and choosing energy-efficient products, you can significantly reduce your electricity costs and contribute to environmental conservation efforts.
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Reduce 'phantom load' by using smart power strips
There are many ways to reduce electricity costs in your home, such as purchasing energy-efficient appliances, using smart power strips, and reducing "phantom" or "vampire" loads.
Phantom loads, also known as vampire loads, refer to electricity that is wasted when electronic devices are not in use but are still plugged in and drawing power. This can occur when devices are left on standby mode or are fully charged but still plugged in. To reduce phantom loads, you can manually unplug devices when they are not in use, or you can invest in smart power strips.
Smart power strips are an effective way to reduce phantom loads and save on electricity costs. Unlike traditional power strips, smart power strips can detect when a device goes into standby mode and automatically shut down power to that outlet, while keeping the rest of the outlets in use turned on. This prevents devices from drawing power unnecessarily when not in active use, reducing your electricity consumption and carbon output.
Smart power strips come with various features, but they typically include electrical outlets and circuitry that monitors and controls those outlets. Some smart power strips also include motion sensors, allowing them to detect when a room is unoccupied and shut off power to certain devices. Additionally, smart power strips often have one or two unmonitored, always-on outlets for devices that require constant power, such as alarm systems or cordless phone bases.
By using smart power strips, you can reduce your power usage and save money on your electricity bills. These strips are particularly useful for devices that are frequently left on standby mode, such as printers, computers, TVs, and DVD players. While smart power strips may require an initial investment, they can lead to significant savings over time by reducing your electricity consumption and carbon footprint.
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Turn down your hot water tank
There are many ways to reduce electricity costs in your home, such as purchasing energy-efficient appliances, using smart power strips to reduce "vampire loads" (electricity wasted when electronics are not in use), and taking advantage of off-peak electricity rates.
One significant way to reduce electricity costs is to turn down your hot water tank. Hot water heaters can account for nearly 20% of your entire energy bill. Most hot water heaters are set at 140°F (60°C) by default, but this can be too high and result in unnecessary costs. By turning down your hot water tank, you can make a considerable difference in your energy bills.
To start, measure the current temperature of the water at the tap farthest from the water heater. You can do this with a thermometer. Mark this setting, then turn down the thermostat. Wait a couple of hours, and then re-measure the water temperature at the same tap. The optimal temperature for your hot water tank is 120°F (48°C). This temperature is comfortable and sanitary, yet does not significantly increase your energy costs.
By turning down your hot water heater, you can reduce standby heat losses, which occur when heat escapes from the water heater into the surrounding area. This can waste up to $61 annually. Additionally, you will also save on consumption costs, as you will be using less hot water for activities such as showering, washing clothes, and dishwashing. These savings can amount to more than $400.
If you plan to be away from home for extended periods, remember to turn the thermostat down to the lowest setting or completely turn off the water heater to save even more on your electricity bill.
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Take advantage of off-peak rates
Off-peak rates refer to discounted electricity prices during specific times, usually at night or on weekends, when electricity demand is lower. By taking advantage of these off-peak rates, you can significantly reduce your electricity costs. Here are some ways to maximize this benefit:
Understand your energy usage patterns: Use a smart meter or a home energy management system to analyze your energy consumption data. This will help you identify the times when you use the most energy and determine if your energy usage aligns with the off-peak hours offered by your electricity provider.
Shift energy-intensive tasks to off-peak hours: Once you know your energy usage patterns, try to shift energy-intensive tasks, such as running the dishwasher, washing machine, or dryer, to off-peak hours. For example, instead of running the dishwasher right after dinner, wait until later in the evening when off-peak rates apply.
Consider the type of meter you have: If you have a single-rate meter, you pay the same price for electricity regardless of the time of day. However, if you have a time-of-use meter, such as an Economy 7 or Economy 10 meter, you can take advantage of varying rates throughout the day. These meters offer cheaper rates during off-peak hours, so using electricity during those times can lead to significant savings.
Utilize smart appliances: Smart appliances, such as smart thermostats, washing machines, and dryers, often come with features that allow you to program or schedule their operation. You can set these appliances to run during off-peak hours automatically, helping you save money without sacrificing convenience.
Charge electric vehicles at night: If you own an electric vehicle (EV), consider charging it during off-peak hours. EV owners can benefit greatly from off-peak rates, as charging their vehicles overnight can result in substantial cost savings.
By following these strategies and taking advantage of off-peak rates, you can effectively reduce your electricity costs and make a positive impact on your monthly expenses.
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Get a home energy audit
A home energy audit is a great way to understand your energy usage and identify areas where energy is being wasted. This will help you prioritize efficiency upgrades and make informed decisions to reduce your electricity costs.
You can start by conducting a simple do-it-yourself home energy assessment to identify areas for improvement. Begin by examining your utility bill to understand your electricity consumption. The national average electricity consumption is about 1000 kWh per month, so you can compare your usage to this benchmark. Check for drafts around windows, doors, lighting fixtures, plumbing fixtures, switches, and electrical outlets. Inspect your attic insulation and vapor barriers to prevent moisture buildup, which can reduce the effectiveness of insulation. Make a list of potential issues and areas of improvement.
Once you've completed your initial assessment, consider contacting a certified energy auditor to perform a professional energy assessment. They will analyze your energy bills, conduct visual, health, and safety inspections, and may use specialized equipment to detect sources of energy loss. This comprehensive approach will provide you with a detailed report on potential energy-saving measures and their estimated impact on your monthly bills.
The cost of a professional energy audit typically ranges from $200 to $700, but state and federal tax incentives can help reduce this expense. Additionally, many utilities offer discounted or free professional energy assessments to their customers. These assessments can identify ways to save energy and money, making them a valuable investment for homeowners.
By getting a home energy audit, you can gain valuable insights into your energy usage and take targeted actions to reduce your electricity costs, contributing to both financial savings and a more energy-efficient home.
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Frequently asked questions
There are many ways to reduce electricity costs in your home. Firstly, identify what uses the most electricity in your home. Heating and cooling systems, water heating, lighting, and household appliances are some of the biggest culprits. Once you know the biggest sources of electricity consumption, you can take steps to reduce their usage or make them more energy-efficient.
You can purchase energy-efficient electric systems and operate them efficiently. For example, turn down the temperature on your thermostat, especially when you are not at home or at night when you go to bed. You can also consider passive solar design concepts, such as using energy-efficient windows and properly insulating your home.
You can reduce electricity costs from household appliances by switching to energy-efficient alternatives. Look for the Energy Star label on appliances, as they use 10 to 50 percent less electricity than non-Energy Star appliances. Additionally, unplug appliances that are not in use to avoid "phantom loads" or "vampire loads," which refer to electricity that is wasted when electronics are turned off or in standby mode.
