Your electric bill may not be an exciting topic, but watching it increase every month will definitely get your attention. Electricity is one of the biggest, recurring household expenses you can have, and costs are showing no signs of waning. According to a Bank of America Institute study, the median customer utility
bill payment rose 6% in January 2025 compared to January 2024 — well above the rate of inflation in utilities.
That said, with a few easy tweaks at home you can save on electricity costs without sacrificing comfort. Working to lower these costs can lead to more
financial stability and free up cash for other priorities.
To combat high summer cooling costs or winter heating spikes — and everything in between — here are the best ways to save money, reduce usage, and make your home more efficient all year round.
1. Upgrade your thermostat
Your heating and cooling system eats up the most electricity, but a smart thermostat can help you rein it in. These devices learn your schedule and adjust temperatures automatically, so you’re not cooling or heating an empty house.
A smart thermostat lets you set it and forget it. Even small changes, like keeping it around 68°F in winter or 78°F in summer, will add up fast when managed efficiently.
2. Go LED
Swapping out any old incandescent bulbs for modern LED alternatives is one of the easiest ways to lower your electricity bill.
LEDs use
up to 90% less energy and last a lot longer than incandescent bulbs, too. Focus on replacing bulbs in high-use areas like kitchens, bathrooms, and hallways first. Over time, the savings can stack up.
3. Avoid phantom energy use
Electronics that stay plugged in even when you’re not using them can still draw some power. Think TVs, game consoles, microwaves, and coffee makers — they all consume what’s called phantom energy.
To cut this hidden waste, just unplug those devices when they’re not in use, or plug them into smart power strips that automatically shut off power to unused outlets.
4. Use a cold wash cycle
Unless your laundry is heavily soiled, most loads don’t need hot — or even warm — water. Switching to a cold water wash can significantly reduce your energy use, especially when done consistently, since heating the water takes up most of the energy used in a typical wash cycle.
You can also look for high-efficiency detergents designed for cold water and try to only run full loads, which can help you save on your bill.
5. Seal leaks and insulate
Any drafts around windows, doors, or vents will reduce the efficiency of your home’s heating and cooling systems. Simple upgrades like weatherstripping, caulking, and adding insulation can help lock in your ideal temperature, and keep your energy costs from sneaking up.
Remember, you don’t need a full home overhaul to see results. In fact, sealing common leak points can cut your heating and cooling costs by
15% on average.
6. Maximize appliance efficiency
Big appliances, like fridges, dishwashers, and dryers, are major energy users, so you want to be sure you’re using them efficiently.
To get the most out of what you already have, keep your fridge and freezer full (but not overcrowded), clean the dryer lint trap regularly, and run the dishwasher only when full. And if you’re replacing an old appliance, try to prioritize models that guarantee lower energy usage.
7. Aim for off-peak hours
Some utility companies will offer variable rates depending on the time of day. Electricity is often cheaper late at night or during the middle of the day when demand is generally lower.
Shifting your dishwasher, laundry, or even device-charging routines to these off-peak windows is an easy way to save. Just check with your provider to see if variable pricing is available in your area.
8. Use fans before air conditioning
Air conditioners are big power users. On mild days, ceiling or oscillating fans can help circulate air and make a room feel up to 4 degrees cooler — at a fraction of the energy cost.
In winter, you can reverse the fan direction to push warm air down and potentially reduce your heating needs as well.
9. Leave the lights off
Beyond switching to LED lighting, how and when you use lights can also be a factor. Try to turn off lights when you leave a room and rely more on natural daylight during the day.
Motion sensors or smart switches can help automate your light usage, especially in areas like hallways or bathrooms. The result should be less wasted electricity and lower bills, for very little work.
If you own your home, installing solar panels could significantly lower your long-term energy costs, as well as offer household tax credits.
If you’re not ready for solar panels, consider looking into possible community solar programs, where you may be able to “subscribe” to solar power without having to install a thing.
Benefits of lowering your electric bill
Cutting your electricity use isn’t just good for your wallet. It also comes with added perks that go beyond monthly savings. Here’s the full range of benefits:
Save money year round. Cutting your energy use even slightly can lead to noticeable savings over time. That extra $20 or even $50 each month could go toward your emergency fund,
paying off debt, or just treating yourself without guilt.
Reduce your carbon footprint. Every bit of electricity you don’t use results in less demand on power plants. That can mean fewer greenhouse gas emissions, less air pollution, and a more sustainable future.
Build smarter energy habits. Once you start paying attention to your electric bill, you naturally become more mindful about energy use in general. That awareness can lead to better habits, like turning off lights, unplugging unused devices, or timing your energy-heavy chores more efficiently.
Stay ahead of rising energy prices. Electricity rates can fluctuate due to demand, fuel prices, or extreme weather events. By adopting energy-saving habits now, you're giving yourself a buffer against unpredictable spikes in the future, leaving you better placed to stay on budget no matter what.
Save up for lower bills with Tip Yourself
Electric bills aren’t always predictable, but that doesn’t mean your wallet has to take a hit. With EarnIn’s
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You can also help fund your energy goals. For example, each time you unplug unused electronics or skip the dryer, “tip” yourself the amount you saved. It’s a simple way to stay motivated while setting money aside for your bills.
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FAQs
What uses the most electricity in a home?
Heating and cooling systems are typically the largest electricity users, followed by water heaters, washers, dryers, and refrigerators.
Do smart thermostats really save money?
Yes, smart thermostats can cut heating and cooling costs by recognizing your schedule and adjusting temperatures automatically. According to the U.S. Department of Energy, you can save
up to 10% a year on HVAC costs with a smart thermostat.
Can unplugging appliances help?
Absolutely. Because devices in standby mode will still draw power, unplugging them can help save a decent chunk of change each year.
Is it cheaper to do laundry at night?
If your energy provider offers variable rates depending on the time of day — also called time-of-use pricing — it can be cheaper to do laundry at night. That’s because running large appliances during off-peak hours can lower your electricity rate.
Please note, the material collected in this post is for informational purposes only and is not intended to be relied upon as or construed as advice regarding any specific circumstances. Nor is it an endorsement of any organization or services.
This Blog was sponsored by EarnIn. While the author received compensation, the information shared is grounded in independent research and intended to provide helpful and accurate guidance to readers.
EarnIn is a financial technology company not a bank. Banking Services are provided by Evolve Bank Bank & Trust, member FDIC. The FDIC provides deposit insurance to protect your money in the event of a bank failure. More details about deposit insurance here. Tip Yourself Account funds and Tip Jars are held with Evolve Bank & Trust, member FDIC and FDIC insured up to $250,000. Tip Yourself is a 0% Annual Percentage Yield and $0 monthly fee service deposit account. For more information/details visit Evolve Bank & Trust Customer Account Terms. The FDIC provides deposit insurance to protect your money in the event of a bank failure. More details about deposit insurance here. 
