The fastest way to lower your electric bill is to go after the biggest loads first: heating and cooling, water heating, and a handful of power-hungry appliances. Small habits like switching off lights help, but a few degrees on the thermostat or one old fridge in the garage usually matter far more. Below are 25 proven ways, sorted from free to paid, with the math shown so you can pick the ones that fit your home.

Electricity isn’t getting cheaper. According to the U.S. EIA, the average US residential price was roughly 18 cents per kilowatt-hour (kWh) in mid-2026, about 5% higher than a year earlier. We use $0.18/kWh for all the examples below. Check your own bill for your actual rate, because prices vary a lot by state and savings vary by climate, home and rates.

Quick answer: the moves with the biggest payoff

Move	Cost	Typical impact
Adjust the thermostat 7-10°F while asleep or away	Free	Up to about 10% off heating and cooling a year (DOE)
Set water heater to 120°F (49°C)	Free	Roughly 3-5% off water heating per 10°F lowered (DOE)
Wash clothes in cold water	Free	Most washer energy goes to heating water
Unplug or recycle a spare old fridge	Free to low	Often $100-$180 a year
Swap remaining bulbs for LEDs	$2-$5 per bulb	About $10 a year per bulb used 3 hours a day
Seal air leaks and add insulation	$50-$2,000+	Around 15% off heating and cooling on average (ENERGY STAR)
Switch to a time-of-use plan (if it fits your habits)	Free	Depends on how much use you can shift

Key takeaway: do the free changes this week, then spend money on the fixes that attack heating, cooling and hot water.

First, find out where your money goes

Before you change anything, take five minutes with your latest statement. Look for your total kWh used, your price per kWh (including delivery charges), and whether you’re on a flat or time-of-use rate. Our guide on how to read your electric bill walks through each line.

A typical US home uses somewhere around 850-900 kWh a month. At $0.18/kWh, that’s roughly $155-$160 before fixed fees. If your usage is much higher, you likely have one or two big culprits. Our breakdown of what uses the most electricity at home has a full appliance cost table to help you spot them.

Free habit changes (ways 1-10)

1. Set back your thermostat

The U.S. Department of Energy says turning your thermostat back 7-10°F for about 8 hours a day can save up to 10% a year on heating and cooling. The easiest window is while you sleep or are at work. In winter, aim for around 68°F when you’re home and awake; in summer, around 78°F.

2. Lower your water heater to 120°F (49°C)

Many water heaters ship set at 140°F. DOE recommends 120°F for most homes and estimates each 10°F reduction saves roughly 3-5% on water heating costs. It also reduces scalding risk.

3. Wash clothes in cold water

Heating water is where most of a washing machine’s energy goes. Modern detergents clean well in cold water for everyday loads. Save hot water for heavily soiled items or bedding.

4. Run full loads only

A dishwasher or washer uses roughly the same energy whether it’s half full or packed. Waiting for a full load cuts the number of cycles, and the hot water that comes with them.

5. Air-dry dishes and some laundry

Skip the heated-dry setting on the dishwasher and prop the door open instead. For laundry, a clothes dryer rated around 3,000 W running 45 minutes uses about 2.25 kWh:

• 2.25 kWh × $0.18 = about $0.41 per load
• 5 loads a week × 4.3 weeks = about $8.80 a month

Line-drying even half your loads saves real money over a year.

6. Use ceiling fans instead of lowering the AC

A ceiling fan uses about 15-75 W; central AC can draw 3,000-4,000 W. DOE notes a fan lets most people raise the thermostat about 4°F with no loss of comfort. Just turn fans off when you leave the room, because they cool people, not rooms. More ideas are in how to keep your house cool without AC.

7. Close blinds on hot days, open them on cold sunny days

Sun pouring through windows can heat a room fast in summer. In winter, south-facing windows are free heat during the day; close curtains at night to hold it in.

8. Cut standby power

TVs, game consoles, set-top boxes and chargers draw power even when “off.” If your idle loads add up to about 40 W:

• 40 W × 8,760 hours a year = 350 kWh
• 350 kWh × $0.18 = about $63 a year

A smart power strip makes this painless. See does unplugging appliances save money for which devices are worth it.

9. Turn off lights and use task lighting

Light only the area you’re using. A single desk lamp beats lighting a whole room.

10. Cook smarter

Microwaves, air fryers, toaster ovens and slow cookers usually use less energy than heating a full-size oven for small meals. Keep lids on pots and match pan size to the burner.

Cheap fixes under $100 (ways 11-17)

11. Replace remaining incandescent or halogen bulbs with LEDs

A 9 W LED gives about the same light as a 60 W incandescent. For a bulb on 3 hours a day:

• (60 W − 9 W) × 3 h × 365 days = 55.8 kWh
• 55.8 kWh × $0.18 = about $10 saved per bulb per year

Full details in LED vs incandescent bulb savings.

12. Change or clean your HVAC filter

A clogged filter makes your system work harder. Check it monthly during heavy-use seasons and replace it typically every 1-3 months.

13. Seal drafts with caulk and weatherstripping

Gaps around doors, windows, outlets on outside walls and attic hatches let conditioned air escape. A tube of caulk and a roll of weatherstripping cost less than $30 and are a manageable weekend project.

14. Use a smart power strip

Advanced power strips cut power to accessories when the main device (like the TV) switches off. Good for entertainment centers and home office desks.

15. Insulate your water heater pipes

Foam pipe sleeves on the first few feet of hot water pipe reduce heat loss and are cheap and easy to install.

16. Install low-flow showerheads

Less hot water used means less energy to heat it. Look for WaterSense-labeled models, which are designed to use less water while still giving a good shower.

17. Clean refrigerator coils and check the seals

Dusty condenser coils make a fridge run longer. Close the door on a piece of paper; if it slides out easily, the gasket may need replacing.

Bigger moves that pay back over time (ways 18-23)

18. Get rid of the second fridge or freezer

An old fridge in the garage can easily use 1,000 kWh a year or more, especially older models in hot spaces:

• 1,000 kWh × $0.18 = about $180 a year

If you don’t truly need it, unplug it. Many utilities offer free pickup and recycling, sometimes with a small bonus.

19. Install a smart or programmable thermostat

A smart thermostat does your setbacks automatically. ENERGY STAR estimates certified models save about 8% on heating and cooling bills on average. Our smart thermostat savings guide covers whether it pays off for you.

20. Air-seal and insulate the attic

ENERGY STAR estimates homeowners can save an average of about 15% on heating and cooling by sealing air leaks and adding insulation in attics, floors over crawl spaces and basements. Start with our home insulation guide.

21. Service your heating and cooling system

A yearly tune-up keeps refrigerant levels, airflow and burners working as designed. It also catches problems before they become expensive breakdowns.

22. Choose ENERGY STAR when you replace appliances

Don’t replace working appliances just for efficiency unless they’re very old. But when something dies, the ENERGY STAR label is a quick way to find a more efficient model.

23. Consider a heat pump or heat pump water heater

Heat pumps move heat instead of making it, so they typically use far less electricity than electric resistance heaters or standard electric water heaters. A heat pump water heater can often cut water heating electricity use by half or more. Compare options in heat pump vs furnace cost.

Change how you pay (ways 24-25)

24. Look at time-of-use rates

On a time-of-use (TOU) plan, electricity costs less at off-peak hours, often late night and midday, and more during peak hours like late afternoon and evening. If you can run the dishwasher, laundry and EV charging off-peak, you may save. If you can’t shift much, a TOU plan could cost more. Read time-of-use electricity rates explained before switching.

25. Ask your utility about programs

Many utilities offer free or discounted home energy audits, appliance rebates, fridge recycling, and demand-response credits for letting them briefly adjust your thermostat on peak days. Some states also run their own efficiency rebate programs; availability varies. Also, if you live in a deregulated state, compare supplier rates carefully, including how long a fixed rate lasts.

Note on budget billing: it spreads costs evenly across the year, which helps with planning, but it doesn’t lower what you pay overall.

A note on federal tax credits in 2026

If you’ve read older articles promising a 30% tax credit on insulation, heat pumps or solar, be careful. Under the 2025 federal budget law, the Energy Efficient Home Improvement Credit (25C) and the Residential Clean Energy Credit (25D) ended for expenditures made after December 31, 2025. You generally can’t claim those credits for work done in 2026. Utility and state rebates may still be available, so check with your utility and state energy office. If you’re weighing solar without the credit, see are solar panels worth it.

Where to start: a simple plan

• This week (free): thermostat setbacks, water heater to 120°F, cold-water laundry, full loads only.
• This month (under $100): LEDs, smart power strip, weatherstripping, new HVAC filter.
• This year: retire the spare fridge, air-seal and insulate the attic, book a tune-up or energy audit.
• When equipment dies: replace it with an efficient model, such as a heat pump.

For winter-specific tips, see how to save on heating this winter.

Frequently Asked Questions

What uses the most electricity in a typical home?

Heating and cooling usually top the list, followed by water heating. After that come large appliances like dryers, refrigerators and ovens. The exact order depends on your climate and whether you heat with electricity or gas.

How much can I realistically save on my electric bill?

Many households cut 10-25% with habit changes and low-cost fixes, and more with insulation or equipment upgrades. Savings vary by climate, home and rates, so track your kWh month to month to see what’s working.

Does unplugging appliances really save money?

Yes, but usually modestly. Standby power might add up to $50-$100 a year in a home with lots of electronics. Focus on entertainment centers, computers and older devices rather than individual phone chargers.

Is it cheaper to leave the AC on all day?

Generally no. DOE says raising the thermostat while you’re away saves energy because your home loses less cool air to the outside. A programmable or smart thermostat can bring the temperature back down shortly before you get home.

Can I still get a federal tax credit for energy upgrades?

The main federal home energy credits (25C and 25D) ended for expenditures after December 31, 2025. Look for utility rebates and state programs instead, and talk to a tax professional about your specific situation.

The bottom line

You don’t need to do all 25 things. Start with the free changes that target heating, cooling and hot water, then add cheap fixes like LEDs and weatherstripping. When you’re ready to spend more, air sealing, insulation and efficient equipment deliver the biggest long-term savings. With electricity around 18 cents per kWh on average, every kilowatt-hour you avoid adds up faster than it used to.

Figures in this guide are estimates based on typical US prices at the time of writing. Savings vary by home, climate and utility rates — check your own bill before making a purchase.