The fastest ways to cut your electric bill: adjust the thermostat 7 to 10 degrees when you are asleep or away, keep the AC or heat pump tuned and the filter clean, seal air leaks, and add attic insulation. Heating and cooling are roughly half of most bills, so together these steps can cut costs 10 to 25 percent.
| Way to save | Season | Typical cost | Savings potential |
|---|---|---|---|
| 1. Raise the thermostat in summer | Summer | $0 | High |
| 2. Get an AC tune up | Summer | $100 to $200 | Medium to high |
| 3. Change air filters | All year | $10 to $40 per filter | Medium |
| 4. Use ceiling fans correctly | Both | $0 | Medium |
| 5. Block afternoon sun | Summer | $50 to $500 | Medium |
| 6. Run heat producing appliances at night | Summer | $0 | Low to medium |
| 7. Lower the thermostat in winter | Winter | $0 | High |
| 8. Seal drafts and air leaks | Winter | $20 to $300 | Medium to high |
| 9. Service the heat pump or furnace | Winter | $100 to $250 | Medium |
| 10. Lower the water heater to 120 degrees | Winter | $0 | Low to medium |
| 11. Install a smart thermostat | All year | $150 to $400 installed | Medium to high |
| 12. Add attic insulation | All year | $1,500 to $3,500 | High |
How can you reduce your electric bill in summer?
1. Raise the thermostat when you are away or asleep
Set the AC to 78 degrees when you are home and awake, and higher when you leave. Each degree you raise the setting for a full day trims cooling energy noticeably, and setting it 7 to 10 degrees higher for eight hours a day can cut annual cooling costs by up to about 10 percent. Avoid dropping it to 68 when you come home; the AC does not cool faster, it just runs longer.
2. Get an AC tune up before the heat
A spring tune up cleans the condenser coil, checks refrigerant and electrical parts, and clears the condensate drain. Dirty coils and low refrigerant make the system run longer for the same comfort. Most homeowners pay $100 to $200; see our AC tune up cost guide for what a good visit includes.
3. Change air filters every one to three months
A clogged filter restricts airflow, makes the blower work harder and can freeze the coil in summer. Check it monthly during heavy use. Homes with pets, allergies or nearby construction may need a new filter every month.
4. Use ceiling fans the right way
In summer, run ceiling fans counterclockwise to push air down, which makes a room feel about 4 degrees cooler and lets you raise the thermostat. Fans cool people, not rooms, so turn them off when you leave. A new energy efficient fan typically costs $150 to $350 installed; see our ceiling fan installation cost guide.
5. Block the afternoon sun
West and south facing windows let in a lot of heat. Close blinds or curtains during the hottest hours, add solar screens or reflective window film, and plant shade trees on the west side for long term savings.
6. Run the dishwasher, dryer and oven at night
Heat producing appliances make the AC work harder during the day. Run them in the evening, use the grill or microwave instead of the oven on hot days, and if your utility offers a time of use plan, shift those loads to cheaper off peak hours.
How can you lower your electric bill in winter?
7. Lower the thermostat and dress for the season
Set the heat to 68 degrees when you are home and awake, and lower while you sleep or are away. In homes with heat pumps, avoid large setbacks that trigger expensive backup electric heat strips; a 2 to 4 degree setback is usually the sweet spot. In winter, set ceiling fans to clockwise on low to push warm air down from the ceiling.
8. Seal drafts and air leaks
Weatherstripping around doors, caulk around windows and foam gaskets behind outlet covers on exterior walls cost little and stop drafts. Do not forget the attic hatch and gaps where plumbing and wiring pass through the ceiling. Sealing leaks helps in summer too.
9. Service the heat pump or furnace
A fall service visit, typically $100 to $250, checks airflow, electrical connections, defrost controls on heat pumps and backup heat. A system that runs efficiently uses less electricity and is less likely to fail on the coldest night.
10. Turn the water heater down to 120 degrees
Many water heaters ship set at 140 degrees. Lowering an electric water heater to 120 degrees saves energy and reduces scald risk. Insulating the first few feet of hot water pipe helps too, especially in winter when pipes run through cold crawl spaces or garages.
Which ways save money all year?
11. Install a smart or programmable thermostat
A smart thermostat makes the setbacks in tips 1 and 7 automatic, learns your schedule and lets you adjust from anywhere. Installed cost typically runs $150 to $400 including the device. Our guide to smart thermostat installation covers compatibility and wiring.
12. Add attic insulation
Many older homes have far less attic insulation than current recommendations. Blowing in more insulation typically costs $1,500 to $3,500 for an average home and reduces heat gain in summer and heat loss in winter. Our attic insulation guide explains how to check your current depth.
Why is my electric bill so high?
If your bill jumped and the weather does not explain it, check these common causes:
- An AC or heat pump running constantly, which often points to low refrigerant, a dirty coil or a failing part.
- Backup electric heat strips running on a heat pump in winter.
- An old second refrigerator or freezer in the garage.
- A pool pump running more hours than needed.
- A leaking hot water fixture or a failing water heater element.
- A rate change from your utility.
Our guide to which appliances use the most electricity helps you find the biggest users in your home.
With House Fly you see an upfront price for an AC or heating tune up, you book at that price, and House Fly handles the rest. Payment is held until the job is done.
See your upfront price and book your HVAC tune up on House Fly.
Frequently asked questions
What uses the most electricity in a home?
Heating and cooling are the largest users in most homes, often around half of the bill. Water heating, clothes dryers, refrigerators, cooking and lighting follow. In hot climates, the AC can be well over half of a summer bill, which is why thermostat settings and AC maintenance matter most.
What temperature should I set my thermostat to save money?
A common target is 78 degrees in summer and 68 degrees in winter while you are home and awake, with bigger adjustments while you sleep or are away. With a heat pump, keep winter setbacks to 2 to 4 degrees so the backup electric heat strips do not kick on.
Does an AC tune up really lower my bill?
It usually helps. A dirty condenser coil, a clogged filter or low refrigerant can make the system run much longer to reach the same temperature. A tune up, typically $100 to $200, restores efficiency and catches worn parts before they fail during a heat wave.
Is attic insulation worth the cost?
For many older homes, yes. Adding insulation typically costs $1,500 to $3,500 and reduces both summer heat gain and winter heat loss. Homes with only a few inches of insulation see the biggest change. Seal air leaks in the attic floor before adding insulation for the best results.
Do ceiling fans save money?
Yes, when used with a higher thermostat setting. A fan makes a room feel about 4 degrees cooler, so you can raise the AC setting and save. Fans only cool people, so turn them off in empty rooms. In winter, run them clockwise on low to push warm air down.
