Utility bills are a necessary expense, but they are not entirely fixed. How you heat, cool, light and run your home, plus the plans you choose for internet and phone service, all affect what you pay every month. Small changes add up, especially for heating and cooling, which typically make up a large share of home energy use.
This guide covers free habit changes first, then low-cost upgrades, then bigger projects and assistance programs. Renters can use most of these ideas too.
Start With Your Bills
Before changing anything, gather the last 12 months of bills for electricity, gas, water and internet. Look for:
- Seasonal spikes, which point to heating or cooling as the biggest opportunity
- Your rate plan, including whether your utility offers time-of-use rates
- Fees and add-ons on internet and phone bills
- Any sudden increase, which could signal a leak or a failing appliance
Many utilities also offer free online tools that show your usage by day or hour.
Heating and Cooling
Adjust the Thermostat
The U.S. Department of Energy notes that turning your thermostat back while you are asleep or away is one of the simplest ways to save on heating and cooling. A programmable or smart thermostat makes this automatic.
Use Ceiling Fans Wisely
Fans cool people, not rooms. Turn them off when you leave. In winter, many fans have a reverse setting that gently pushes warm air down from the ceiling.
Seal Air Leaks
Drafts around doors and windows let conditioned air escape. Low-cost fixes include:
- Weatherstripping on doors and operable windows
- Door sweeps on exterior doors
- Caulk around window trim and gaps
- Foam gaskets behind outlet and switch plates on exterior walls
Maintain Your System
- Replace or clean HVAC filters regularly, following the manufacturer’s recommendation.
- Keep vents and returns clear of furniture and rugs.
- Schedule periodic professional maintenance for furnaces and heat pumps.
Use Window Coverings
Close blinds and curtains on sunny windows in summer to block heat. Open them on sunny winter days to let in warmth, and close them at night to hold it in.
Lighting and Electronics
Switch to LED Bulbs
LED bulbs use much less energy than traditional incandescent bulbs and last much longer. Replace the bulbs you use most first.
Turn Off What You Are Not Using
Turn off lights, TVs and computers when you leave a room.
Tackle Standby Power
Many devices draw power even when “off.” Plug entertainment centers and computer setups into a power strip you can switch off, or use smart plugs on a schedule.
Kitchen and Laundry
In the Kitchen
- Run the dishwasher only when it is full, and use the air-dry setting if available.
- Use lids on pots and match the pan size to the burner.
- Use a microwave, toaster oven or slow cooker for small meals instead of heating a full oven.
- Keep the refrigerator coils clean and the door seals tight.
In the Laundry Room
- Wash full loads and use cold water for most clothes.
- Clean the dryer lint filter every load, which also reduces fire risk.
- Air-dry clothes when practical.
Water
Fix Leaks
A dripping faucet or running toilet wastes water around the clock. Check toilets with a few drops of food coloring in the tank: if color appears in the bowl without flushing, the flapper is likely leaking.
Reduce Hot Water Use
Heating water is a significant energy cost. Ideas include:
- Lower your water heater temperature. The Department of Energy suggests 120°F for most households.
- Install low-flow showerheads and faucet aerators.
- Take shorter showers.
Outdoors
Water lawns and gardens in the early morning, and consider drip irrigation or soaker hoses for garden beds.
Internet and Phone
These are often the easiest bills to lower with a phone call:
- Check your speed needs. You may be paying for more speed than your household uses.
- Buy your own modem and router if your provider charges a monthly equipment fee and allows customer-owned equipment.
- Call and ask about current promotions or lower-cost plans.
- Look into prepaid or low-cost mobile carriers that use major networks.
- Check for low-income internet plans offered by many providers.
Low-Cost Upgrades Worth Considering
- Programmable or smart thermostat
- LED bulbs
- Smart power strips
- Weatherstripping and door sweeps
- Low-flow showerheads
- Water heater pipe insulation on accessible pipes
Many utilities offer rebates or free kits for some of these items. Check your utility’s website.
Bigger Projects
If you own your home, larger projects can make a significant difference over time:
- Adding attic insulation
- Replacing old, inefficient appliances with ENERGY STAR certified models when they wear out
- Upgrading to a heat pump or a more efficient water heater
Federal, state and utility incentives for some efficiency upgrades change frequently. Check the current details on official government and utility websites before you buy.
Free Energy Audits
Many utilities offer free or low-cost home energy assessments that identify where your home is losing energy. It is a good first step before spending money on upgrades.
Help Paying Utility Bills
If you are struggling to pay:
- Contact your utility. Ask about payment plans, budget billing (which spreads costs evenly across the year) and hardship programs.
- LIHEAP. The federal Low Income Home Energy Assistance Program helps eligible households with heating and cooling costs. Apply through your state or local agency.
- Weatherization Assistance Program. This federal program helps eligible households make energy-efficiency improvements.
- Local nonprofits and charities may offer emergency assistance.
Frequently Asked Questions
What uses the most energy in a typical home?
Heating and cooling usually account for the largest share of home energy use, followed by water heating. That is why thermostat settings, air sealing and water heater temperature are good places to start.
Is budget billing a good idea?
Budget billing does not lower your total cost, but it makes payments predictable by averaging them across the year. That can make budgeting easier.
Do smart thermostats actually save money?
They can help by making it easy to set back temperatures automatically when you are asleep or away. Savings depend on your habits and climate.
Can renters lower utility bills?
Yes. Renters can change thermostat habits, use LED bulbs, add removable weatherstripping, use power strips, wash in cold water and call internet providers about cheaper plans. Ask your landlord before making permanent changes.
Should I unplug everything when not in use?
Unplugging every device is not practical, but switching off power strips for entertainment and computer setups is an easy way to cut standby power.
The Bottom Line
Lowering utility bills starts with understanding your usage. Adjust your thermostat, seal drafts, switch to LEDs, use less hot water and call your internet provider about cheaper plans. Then consider low-cost upgrades and rebates, and do not hesitate to ask for help if bills become unmanageable. Every small change helps your monthly budget.
This article is for general information. Check current programs, rebates and rates with your utility and official government sources.
Editorial note: Budget Nestly is independent and reader-supported. This guide is based on research into manufacturer documentation, published specifications and widely accepted best practices; we have not been paid to mention any product. If we add affiliate links in the future, they will be clearly disclosed per our Affiliate Disclosure.