The fixes, one by one
Replace an electric water heater with a heat pump model
Saves about $400 a year (2,200 kWh) · Cost: $1,500–$3,000 before rebates · Best for: Homes with an electric water heater
A heat pump water heater moves heat from the air into the tank instead of making it with a heating element, and uses about a third as much electricity. It’s the single biggest upgrade for most all-electric homes. Federal tax credits and many utility rebates cover a large part of the price, and it pays for itself fastest when your old tank is near the end of its life anyway.
Run the pool pump fewer hours, or switch to variable speed
Saves about $273 a year (1,500 kWh) · Cost: Free, or $800–$1,500 for a variable-speed pump · Best for: Homes with a pool
Most residential pools stay clean with 6–8 hours of filtering a day. A variable-speed pump running longer at low speed can use a fraction of the power of a single-speed pump, and many utilities offer rebates.
Replace 15 old bulbs with LEDs
Saves about $150 a year (825 kWh) · Cost: About $30 · Best for: Homes with incandescent or halogen bulbs
A 60 W incandescent bulb on for 3 hours a day uses about 66 kWh a year; the LED that replaces it uses about 11. Swap the bulbs you leave on longest first: kitchen, living room and outdoor lights.
Unplug the second fridge or freezer
Saves about $127 a year (700 kWh) · Cost: Free · Best for: Homes with an old garage or basement fridge
A refrigerator that’s 15 or more years old can use 700 kWh or more a year, and garages make it work even harder in summer. If it only holds drinks, empty it and unplug it. Many utilities pay you $35–$75 to haul it away.
Seal air leaks and add attic insulation
Saves about $109 a year (600 kWh) · Cost: $50 DIY, $1,000–$2,500 professionally · Best for: Homes with electric heat or central A/C
Gaps around attic hatches, recessed lights, plumbing openings, windows and doors let heated or cooled air escape. The U.S. Department of Energy estimates that sealing and insulating can cut heating and cooling costs by around 15%. Start with caulk and weatherstripping, then check that your attic insulation is at least as deep as the joists.
Wash clothes in cold water
Saves about $65 a year (360 kWh) · Cost: Free · Best for: Homes with an electric water heater
About 90% of the energy a washer uses goes to heating water. Modern detergents clean well in cold water, and your clothes last longer too.
Turn the thermostat back 7–10°F at night and when you’re out
Saves about $64 a year (350 kWh) · Cost: Free, or $100–$250 for a smart thermostat · Best for: Homes with electric heat or central A/C
The Department of Energy estimates you can save up to 10% a year on heating and cooling this way, by setting the thermostat back for about 8 hours a day. A programmable or smart thermostat makes it automatic. With a heat pump, use smaller setbacks so the backup heat strips don’t kick in.
Cut standby power with smart power strips
Saves about $55 a year (300 kWh) · Cost: About $25 each · Best for: Every home
TVs, game consoles, cable boxes, computers and chargers keep drawing power when they look off. A smart power strip cuts power to accessories when the main device turns off. A plug-in electricity usage monitor shows you which devices are the worst offenders.
Install WaterSense low-flow showerheads
Saves about $55 a year (300 kWh) · Cost: About $20 each · Best for: Homes with an electric water heater
Showers are the biggest use of hot water in most homes. A WaterSense showerhead uses at least 20% less water with the same feel, and less hot water means less electricity.
Set the A/C to 78°F and use ceiling fans
Saves about $55 a year (300 kWh) · Cost: Free · Best for: Homes with central A/C
Each degree you raise the setting saves a few percent of cooling cost. A ceiling fan uses about as much power as a light bulb and makes a room feel about 4°F cooler, so you stay comfortable at a higher setting. Turn fans off when you leave the room: they cool people, not rooms.
Change the A/C filter and get a tune-up
Saves about $44 a year (240 kWh) · Cost: $15 for filters, $100–$150 for a tune-up · Best for: Homes with central A/C or a heat pump
A clogged filter and dirty coils make the system run longer for the same comfort. Change the filter every one to three months in heavy-use seasons and have the system checked once a year.
Lower the water heater to 120°F
Saves about $36 a year (200 kWh) · Cost: Free · Best for: Homes with an electric water heater
Many water heaters are set to 140°F at the factory. 120°F is hot enough for showers and dishes and reduces the heat the tank loses all day. Turn off the power at the breaker before opening the access panel on an electric tank.
Clean the dryer vent and line-dry some loads
Saves about $30 a year (165 kWh) · Cost: Free to $20 · Best for: Homes with an electric dryer
A clogged vent makes every load take longer and is a fire risk. Clean the lint screen every load and the vent once a year, use the moisture sensor setting instead of a fixed time, and air-dry a load or two a week.
Pay less without using less
- Check your price per kWh. Divide your bill by the kWh used and compare it with your state average. If it’s well above, the problem is the price, not your usage.
- Shop for a supplier if your state allows it. In Texas, Ohio, Pennsylvania, Illinois, New Jersey and Maryland and several other states, many homes can pick who supplies their power. Expired contracts often roll onto expensive variable rates.
- Ask about time-of-use plans. If you can run the dishwasher, laundry and car charging at night or on weekends, a time-of-use rate can lower your bill without changing how much you use.
- Look for an estimated reading. If the bill says the meter reading was estimated, read the meter yourself and ask for a corrected bill.
- Use budget billing. It doesn’t lower your yearly cost, but it spreads it into equal monthly payments so summer and winter bills stop spiking.
- Get help if you need it. LIHEAP, weatherization programs and utility discount rates can cut bills substantially for qualifying households. Your state page lists local programs.
Find your biggest energy users
Use the appliance cost calculator to see what your heater, air conditioner, dryer or old fridge costs to run at your state’s price.