- The US Department of Energy says setting your thermostat back 7–10°F for 8 hours a day can save as much as 10% a year on heating and cooling.
- ENERGY STAR-rated LED bulbs use at least 75% less energy than incandescent bulbs, according to the DOE.
- Standby power accounts for an estimated 5–10% of residential energy use, per the DOE.
- Your cost for any appliance is simply: watts × hours ÷ 1,000 × your price per kWh.
First, the formula that guides every decision
An appliance's running cost is its power draw in kilowatts multiplied by hours of use and your electricity price. For example, a 1,500 W space heater running 4 hours a day for 30 days at 17 cents per kWh costs:
1.5 kW × 4 h × 30 days = 180 kWh × $0.17 = $30.60 a month.
Use our appliance running cost calculator to run this for anything in your home, and find your actual price per kWh on your bill.
Heating and cooling (usually the biggest share)
- 1. Set back the thermostat. Lower the heating setpoint at night and when you are out, and raise the cooling setpoint. The DOE's "up to 10%" estimate applies to a 7–10°F setback for 8 hours a day.
- 2. Use a smart or programmable thermostat. Automation makes setbacks happen reliably. See our smart thermostat guide.
- 3. Change or clean HVAC filters. A clogged filter makes the blower and system work harder.
- 4. Seal air leaks. Caulk and weatherstrip gaps around doors, windows and attic hatches. Our insulation and air sealing guide shows where to look first.
- 5. Top up attic insulation. Often one of the best-value upgrades in older homes.
- 6. Use ceiling fans to feel cooler. Fans cool people, not rooms, so switch them off when you leave.
- 7. Block summer sun. Close blinds or curtains on sun-facing windows on hot afternoons.
- 8. Service your heating and cooling system. Dirty coils and low refrigerant reduce efficiency.
- 9. Replace electric resistance heat with a heat pump. When it is time to replace, a heat pump typically delivers far more heat per kWh. See our heat pump guide.
- 10. Heat the person, not the house. An electric blanket or heated mattress pad uses a fraction of the energy of a space heater.
Hot water
- 11. Set the water heater to 120°F (about 49°C). The DOE recommends this for most households; many heaters ship set higher.
- 12. Wash clothes in cold water. Most of a washer's energy goes to heating water, and the DOE notes that switching from hot to warm alone can cut a load's energy use in half.
- 13. Fix dripping hot water taps. A slow drip adds up over a year.
- 14. Install low-flow showerheads. Less hot water used means less energy.
- 15. Insulate accessible hot water pipes and, for older tanks, consider an insulating jacket if the manufacturer allows it.
- 16. Consider a heat pump water heater when the old one fails. See our heat pump water heater guide.
Lighting and electronics
- 17. Switch every remaining bulb to LED.
- 18. Kill standby power. Use smart or switched power strips for TV and computer setups. Our standby power guide shows how to find the worst offenders.
- 19. Turn on power-saving modes for TVs, game consoles and computers.
- 20. Unplug old secondary devices such as spare chargers, a second set-top box or an old stereo you no longer use.
Worked example: the LED switch
Replacing 15 bulbs of 60 W incandescent with 9 W LEDs, each used 3 hours a day, at 17 cents per kWh:
- Watts saved: 15 × (60 − 9) = 765 W
- Energy saved per year: 0.765 kW × 3 h × 365 days ≈ 838 kWh
- Money saved per year: 838 × $0.17 ≈ $142
If most of your bulbs are already LED, this tip is worth little. That is why it pays to check your own home rather than follow generic lists.
Kitchen and laundry
- 21. Run full loads in the dishwasher and washing machine.
- 22. Air-dry or skip heated dry on the dishwasher.
- 23. Clean the dryer lint filter every load and line-dry when practical.
- 24. Use the microwave, slow cooker, air fryer or induction for small meals instead of the full oven. See our induction cooking guide.
- 25. Check fridge and freezer settings and seals. Keep the fridge cold but not colder than needed, and make sure door seals close tightly.
- 26. Retire the second fridge if it is old and mostly empty.
Your rate plan and the bigger picture
- 27. Check your rate plan. A time-of-use rate can save money if you can shift flexible loads, or cost more if you cannot.
- 28. Shift big flexible loads off-peak, especially EV charging. See our EV home charging guide.
- 29. Get a home energy audit. A professional audit with a blower door test pinpoints the most valuable fixes. See our home energy audit guide, and check our incentives page for audit and upgrade programs.
- 30. Consider solar or community solar once you have cut waste. Read whether solar is worth it or how community solar works if your roof is unsuitable.
Prioritize by cost and payoff
| Category | Upfront cost | Typical payoff | Examples |
|---|---|---|---|
| Free habit changes | None | Immediate | Thermostat setbacks, cold-water washing, full loads, water heater at 120°F |
| Low-cost fixes | Under about $100 | Often months | LED bulbs, smart power strips, weatherstripping, low-flow showerheads |
| Moderate upgrades | Hundreds of dollars | Often a few years | Smart thermostat, attic insulation, professional air sealing |
| Major upgrades | Thousands of dollars | Many years; best timed with replacements | Heat pump, heat pump water heater, solar |
Upgrade costs and savings vary by home, climate and local prices. When you replace appliances, look for the ENERGY STAR label; the ENERGY STAR website lists certified models and their estimated annual energy use.
Track your results
Compare bills month by month against the same month last year, since weather drives big swings. Many utilities offer hourly or daily usage data online. For a quick overall picture, try our home energy score tool.
Frequently asked questions
What uses the most electricity in a home?
In most homes it is heating and cooling, followed by water heating if it is electric, then large appliances such as refrigerators, dryers and ovens. An EV, pool pump or electric heating can quickly become the largest single load.
Does unplugging appliances really save money?
For devices with significant standby draw, yes. The DOE estimates standby power at 5–10% of residential energy use. Smart power strips make it easy without unplugging things manually.
Is it cheaper to leave the heat on all day?
Generally no. A home loses heat more slowly when it is cooler, so setting back the thermostat when you are out or asleep saves energy. Heat pumps can be an exception with large setbacks; follow the manufacturer's guidance.
What is the fastest way to lower my electric bill?
Lower your heating or raise your cooling setpoint, set the water heater to 120°F, wash in cold water, and switch off standby loads. These cost nothing and take effect on your next bill.
Run your own numbers
Plug your bill, prices and climate into our free appliance energy cost calculator — every assumption is editable.
This guide is general information, not financial, tax or engineering advice. Prices and incentives change — confirm with qualified local professionals and official program sources. See our methodology and disclosures.