How to Save on Electricity: 10 Strategies with Real Dollar Savings (2026)

Switch to a Cheaper Electricity Provider

If you live in a deregulated state, you can shop for a lower supply rate. The process takes 15 minutes online, causes no service interruption, and can save 15 to 30% on the supply portion of your bill. Use your state's official comparison tool to find the best rate.

How to compare providers

Switch to Time-of-Use Rates

Time-of-use rates charge less during off-peak hours (nights and weekends). If you can shift laundry, dishwasher, and EV charging to after 9pm, you save 20 to 40% on those loads. Most utilities offer a TOU option. Call and ask.

TOU rate guide

Install a Smart Thermostat

Smart thermostats (Nest, Ecobee, Honeywell) learn your schedule and automatically reduce heating and cooling when you are away or asleep. The Department of Energy estimates a 10 to 15% reduction in HVAC costs, which is the largest single electricity expense for most homes.

Replace All Bulbs with LED

LED bulbs use 75% less electricity than incandescent and 25% less than CFL. They last 15,000 to 25,000 hours (15 to 25 years at 3 hours per day). A 20-bulb home switching from incandescent to LED saves 1,200+ kWh per year.

Seal Air Leaks and Improve Insulation

Weatherstripping doors, caulking windows, and adding attic insulation prevents 15 to 25% of conditioned air from escaping. Focus on the attic first (heat rises), then exterior doors and windows. A $50 weatherstripping kit can save $150+ per year in a leaky home.

Eliminate Phantom Loads

Electronics in standby mode consume 5 to 10% of your total electricity. Smart power strips ($20 to $35 each) cut power to devices when they are off. Focus on entertainment centers, home offices, and kitchen countertops. Unplug chargers when not in use.

Common high-bill causes

Lower Water Heater Temperature

Turn your water heater thermostat from 140 to 120 degrees. Most people cannot tell the difference at the tap, but the lower setting reduces standby heat loss by 10 to 15%. For electric water heaters, this is $50 to $100 per year. Add a $25 insulation blanket for another $30 to $50 in savings.

Use Ceiling Fans Strategically

A ceiling fan costs about $0.01 per hour to run (1/30th the cost of an AC). Running ceiling fans and raising the thermostat 4 degrees provides the same comfort at a fraction of the cost. Remember: fans cool people, not rooms. Turn them off when you leave.

Upgrade to Energy Star Appliances

When your old appliances die, replace them with Energy Star certified models. An Energy Star refrigerator uses 15% less energy than standard. An Energy Star washing machine uses 25% less electricity and 33% less water. Do not replace working appliances just for efficiency; wait until they need replacement.

Charge Your EV on Off-Peak Rates

If you own an EV, schedule charging to start at midnight when TOU rates are lowest. Most EVs and Level 2 chargers have built-in scheduling. This alone can reduce your EV charging cost by 20 to 40%, saving $150 to $400 per year for typical driving.

EV charging cost guide