How to Lower Electric Bill: 10 Easy Ways to Save in 2026

Spread the love

Updated October 15, 2026 · Written by the AMSY Editorial Team · Reading time: 10 min

If you want to know how to lower electric bill costs, start with the biggest users: heating, cooling and water heating, then the small habits that add up. The U.S. Department of Energy (DOE) says you can save as much as 10% a year on heating and cooling by setting your thermostat back 7 to 10°F for 8 hours a day, and 10% to 20% by sealing air leaks.

ENERGY STAR says an ENERGY STAR smart thermostat saves more than 8% of heating and cooling costs, or about $50 a year, on average.

This guide explains how to lower electric bill costs in two ways: using less electricity and paying less for each kilowatt-hour. It lists 10 easy ways, shows where the savings numbers come from, and points to help if the bill is still too high. Every figure comes from the DOE, the U.S. Energy Information Administration (EIA) or ENERGY STAR, which we read on October 15, 2026.

Key takeaways

The average U.S. home used 10,791 kWh of electricity in 2022, about 899 kWh a month, according to the EIA. At the EIA’s July 2026 national average of 18.31¢ per kWh, every 100 kWh you avoid is worth about $18.
In the EIA’s 2020 survey, air conditioning was 19% of home electricity use, and space heating and water heating were 12% each. Start there.
The DOE and ENERGY STAR publish savings for each step in how to lower electric bill costs: a thermostat setback, a smart thermostat, air sealing, LEDs and laundry habits. Most are free or cost little.
The simplest answer to how to lower electric bill costs is to pull two levers: use fewer kWh and pay less for each kWh. Check whether you can compare supply rates, as we explain for Connecticut.
If the bill is more than you can pay, energy assistance and shutoff protections exist in many states.

Where your electric bill comes from

Here is how to lower electric bill costs in one sentence: use less energy where you use the most, and pay the lowest rate you can find.

An electric bill is mostly two numbers multiplied together: the kilowatt-hours (kWh) you use and the price per kWh, plus fixed monthly charges. Knowing both tells you how to lower electric bill costs where it matters. The EIA’s FAQ on household use puts average residential use at 10,791 kWh per customer in 2022, about 899 kWh a month. The EIA’s July 2026 price table shows a national average residential price of 18.31¢ per kWh.

Multiplying the two gives roughly $165 a month. That is our arithmetic, mixing two different years, so treat it as an illustration. Your own bill is the authority.

Where does the electricity go? In the EIA’s 2020 Residential Energy Consumption Survey, as reported on its electricity use in homes page, air conditioning was 19% of household electricity use, space heating 12% and water heating 12%. The EIA names lighting and refrigerators as the next largest uses but gives no shares for them. This is why the first ways below target heating, cooling and hot water.

10 easy ways on how to lower electric bill costs

We ordered these from the least effort to the most. The savings figures are the ones published by the DOE and ENERGY STAR. They depend on your climate, your home and your rates, and the DOE percentages apply to heating and cooling costs, not to your whole bill.

1. Turn your thermostat back 7 to 10°F for 8 hours a day

The DOE says you can save as much as 10% a year on heating and cooling by turning your thermostat down 7 to 10°F for 8 hours a day in the fall and winter, and turning it up in the spring and summer. Use the setback while you sleep or are away. This is the simplest first step in how to lower electric bill costs.

In summer, the DOE adds that a ceiling fan lets you raise the thermostat about 4°F without losing comfort. If you have a heat pump, do not do this without a smart or programmable thermostat designed for heat pumps.

2. Consider an ENERGY STAR smart thermostat

ENERGY STAR says a certified smart thermostat can reduce your heating and cooling bill by more than 8%, or about $50 a year on average, and about $100 a year if your home is empty much of the day. The DOE notes that certified models are independently tested on field data. If you already follow tip 1 by hand, the extra savings may be smaller.

3. Seal air leaks

The DOE calls caulking, sealing and weatherstripping seams, cracks and openings to the outside one of the quickest money- and energy-saving tasks. By sealing uncontrolled air leaks, it says you can save 10% to 20% on heating and cooling bills. Check around windows, doors, outlets and where pipes go through walls. Sealing leaks is a classic answer to how to lower electric bill costs in both winter and summer. A home energy audit finds leaks you cannot see: see our guide to home energy audit cost.

4. Switch to LED bulbs

ENERGY STAR LEDs use up to 90% less energy and last 15 times longer than standard bulbs, according to ENERGY STAR, and the DOE says one can save about $55 in electricity over its lifetime. ENERGY STAR estimates that replacing your five most-used bulbs or fixtures can save about $40 a year. Start with the kitchen, living room and outdoor lights that stay on longest. LEDs are a low-cost step in how to lower electric bill costs.

5. Lower your water heater to 120°F

The DOE advises setting your water heater temperature to 120°F, a temperature it considers safe for most people. The guide gives no dollar figure for this step, but water heating was 12% of home electricity use in the EIA’s survey, and a lower setting also reduces scald risk. Check your dishwasher manual first: the DOE says that if your dishwasher has an internal heating element, you can set the water heater to 120°F.

6. Wash clothes in cold water

ENERGY STAR says hot water accounts for about 90% of the energy a washing machine uses, and recommends cold water when possible. It also advises washing full loads. Cold-water washing is a free step in how to lower electric bill costs.

7. Clean the dryer lint trap before every load

ENERGY STAR says cleaning the lint trap before each load can save up to $34 a year, and that an extra 15 minutes of drying per load can cost up to $34 a year.

8. Cut standby power

ENERGY STAR notes that electronics and IT equipment can use a small amount of electricity even when turned off, and that a power strip can cut it off. It gives no dollar figure, so the savings are small per device. A power strip for the TV, game console and set-top box is an easy place to start. Standby power is a small piece of how to lower electric bill costs, but it is easy to fix.

9. Replace or clean filters every month

The DOE advises cleaning or replacing furnace and air conditioner filters once a month or as recommended. It says regular replacement keeps your system running efficiently. Also keep warm-air registers, baseboard heaters and radiators clear of furniture, carpets and drapes.

10. Compare your electricity rate and plan

The other half of how to lower electric bill costs is the price per kWh. In some states you can choose your electricity supplier, and in others your utility sets the rate. In Connecticut, for example, the state’s Office of Consumer Counsel advises checking the official rate board and reviewing supplier contracts: see our guide to CT energy rates.

Elsewhere, check your state utility commission’s website. The DOE also asks whether you could use time-of-day electricity rates and run laundry and the dishwasher at night, so ask your utility if such a plan exists.

How to lower electric bill costs: quick comparison

This table compares the steps on how to lower electric bill costs by effort and published savings.

Action	Typical cost	Published savings
Thermostat setback of 7–10°F, 8 hours a day	Free	Up to 10% a year on heating and cooling (DOE)
ENERGY STAR smart thermostat	Purchase	More than 8%, about $50 a year on average (ENERGY STAR)
Seal air leaks	Small purchase	10% to 20% of heating and cooling bills (DOE)
LEDs in your five most-used fixtures	Small purchase	About $40 a year (ENERGY STAR)
Cold-water washing	Free	Hot water is about 90% of a washer’s energy (ENERGY STAR)
Clean the lint trap before each load	Free	Up to $34 a year (ENERGY STAR)

Bigger upgrades worth pricing

These cost more, but they change the long-term math of how to lower electric bill costs.

An old refrigerator. The DOE says that if yours is more than 10 years old, you could save hundreds of dollars a year by replacing it with an ENERGY STAR certified model, and many utilities offer rebates for recycling the old one.
A heat pump water heater. The DOE says that in a climate with temperatures of 40 to 90°F all year, one could potentially save more than $300 a year on water heating costs.
A professional energy audit. It shows where your home loses energy and which projects to do first. See our guide to home energy audit cost for what it costs.

Federal tax credits and state rebates for upgrades change often, so check the current rules on IRS.gov and with your state energy office before you buy. We will cover them in a separate guide.

If your electric bill is still too high

Using less energy has limits, and some households cannot pay even a lower bill. If you have tried the tips on how to lower electric bill costs, ask for help. Many states run heating and electric bill assistance funded by the federal Low Income Home Energy Assistance Program. See how it works in our guides to Wisconsin energy assistance and Connecticut energy assistance. Call your utility early: many offer payment plans, and some states protect customers from winter shutoffs.

The short version of how to lower electric bill costs: start with heating, cooling and hot water, do the free steps first and check your rate. Price one bigger upgrade at a time, and if the bill is still out of reach, ask about energy assistance.

FAQ

What uses the most electricity in a home?

In the EIA’s 2020 survey, air conditioning was 19% of home electricity use, followed by space heating and water heating at 12% each. Lighting and refrigerators are the next largest uses, but the EIA gives no shares for them.

What is the first step in how to lower electric bill costs?

For how to lower electric bill costs without spending money, the free steps are the easiest: a thermostat setback, cold-water washing, a clean lint trap and a power strip for electronics. Replacing your most-used bulbs with LEDs is a small purchase with a published payback.

Do smart thermostats really save money?

ENERGY STAR says certified smart thermostats reduce heating and cooling bills by more than 8%, about $50 a year on average. Your savings depend on your climate and on how you used your thermostat before.

Is it cheaper to run appliances at night?

Only if your utility offers time-of-day rates. The DOE suggests asking whether you can take advantage of them for laundry and dishwashing. If your rate is the same all day, timing makes no difference to your bill.

Can I get help paying my electric bill?

Many states offer energy assistance. Eligibility and dates depend on your state, so start with your state energy assistance office or your local agency.

Our verification method

On October 15, 2026 we read the EIA’s FAQ on household electricity use (2022 data, last updated January 8, 2024), the EIA’s page on electricity use in homes (2020 survey data, last updated December 18, 2023), the EIA’s Electric Power Monthly Table 5.6.A (July 2026 data), the DOE’s Energy Saver Guide (2022 edition) and ENERGY STAR’s Low- to No-Cost Tips page, which shows no date.

We did not use the tax credit information in the DOE guide because it is out of date. Savings depend on your home, climate and rates, so the tips on how to lower electric bill costs will not work equally for every household, and some published figures come from older data.

This guide is general information, not legal or financial advice. You can read more about how we work on our About page, or browse all our energy guides.

Sources

How to Lower Electric Bill in 2026: 10 Easy Ways to Save

Table of Contents