Effective Strategies to Reduce Your Energy Costs

Energy usage can be a significant part of your monthly budget, with the average residential electric bill in the United States reaching nearly $152 per month, according to SaveOnEnergy. Fortunately, there are numerous steps you can take to reduce energy costs, regardless of the climate where you live. These tips can help you lower your electricity expenses and free up cash for other monthly needs.

14 Tips to Save Money on Your Electric Bill

Minimize Wasteful Energy Usage

Have you ever noticed lights on in every room even though no one’s there? Turning off lights and electronics when not in use, avoiding over-drying clothes, and setting your dishwasher to the shortest cycle necessary can help you use only the energy you need.

Unplug Electronics

Electronic devices draw energy even when not in use if they’re plugged in. These “vampire electronics” could account for up to 20% of your household’s energy usage, costing an estimated $100 to $200 per year. Unplugging TVs, laptops, gaming consoles, and other electronics could save you hundreds of dollars annually. If unplugging each device individually is impractical, consider using a power strip that you can switch off at night.

Change Your Lightbulbs

Switching to LED light bulbs can save a typical household about $225 per year, according to the U.S. Department of Energy. While LEDs may cost more upfront, they last longer and use up to 90% less energy than incandescent bulbs. Installing dimmer switches to adjust brightness can help you save even more.

Adjust Your Thermostat

Heating and cooling your home often accounts for the largest portion of your electric bill. Adjusting your thermostat by just a few degrees can significantly impact your costs. Try raising your thermostat a few degrees in the summer and lowering it in the winter. A programmable thermostat allows you to schedule temperature changes, reducing energy use when you’re not home.

Rethink Your Hot Water Usage

Long, hot showers can be costly, as heating water accounts for about one-fifth of the average household’s energy costs. Taking shorter showers and using a low-flow showerhead can save up to 60% on your water bill. Lowering your water heater’s temperature from 140 degrees to 120 degrees can also help reduce costs and the risk of burns.

Revamp Your Laundry Routine

Heating water for laundry accounts for 90% of the energy used by washing machines. Washing clothes in cold water with detergent made for cold water washes can avoid these costs. Additionally, only doing full loads can help keep energy costs down.

Protect Your Windows

Sunlight through windows can make your air conditioning work harder. Installing blinds or curtains can help keep your home cooler in the summer. In the winter, opening blinds to let the sun in can reduce heating needs.

Use Power During Off-Peak Times

Many utility providers offer reduced rates or rebates for electricity used during off-peak hours. Reducing energy usage during peak times can help you save. Check with your provider to see if this option is available to you.

Track Your Energy Usage

Identifying the changes that will make the biggest difference in your energy consumption can be challenging. Apps can help you track energy usage and identify ways to cut costs. Depending on the app, you may need to install a monitor in your home.

Evaluate Your Insulation

Poor insulation or leaks around windows and doors can make your HVAC system work harder. Adequately insulated and sealed homes can save 15% on heating and cooling costs by keeping your home cooler in the summer and warmer in the winter.

Get a Home Energy Audit

Conducting a home energy audit can help you determine how much energy you use and identify areas where you can cut back. An audit can help you prioritize the most efficient and inefficient areas in your home, allowing you to focus on the changes that will give you the most significant savings.

Switch to Energy-Efficient Appliances

Energy-efficient appliances can save you money in two ways: they use less energy, reducing operating costs, and you may qualify for federal tax credits if you install specific clean energy equipment. EnergyStar-rated appliances can save you 10% to 50% on your energy bill.

Consider Installing Solar Panels

Solar panels can save residents an average of $1,500 annually on energy bills. However, the average cost of solar panels is $25,000, according to the Solar Energy Industries Association. Incentives and rebates may help reduce the initial investment. Solar panels have an average lifespan of 20 to 30 years, potentially saving you $37,500 over their lifetime. They work best on south-facing roofs with slopes of 15 to 40 degrees and minimal shading.

Negotiate Your Electric Bill

If you live in a state with multiple electricity providers, you can attempt to negotiate your bill. Research rates from various providers and contact your current provider to argue for a lower rate. While success isn’t guaranteed, it’s worth trying.

What to Do if You Can’t Afford Your Electric Bill

If you’re struggling to pay your electric bill, contact the utility company immediately to explain the situation. They may offer a payment plan or an extension. Additionally, inquire about state-based energy assistance programs and look into charities and faith-based organizations that provide financial assistance and grant programs.

Falling behind on utility payments can impact your credit, as accounts may be turned over to a collection agency. To avoid this, communicate with your utility company and seek assistance if needed.

Take Steps to Minimize Your Energy Costs

If this list seems overwhelming, remember you don’t have to do everything at once. Start small and gradually implement more significant changes. Many of the tips cost little to nothing and can be started today. Choose one that seems manageable and move on to the next when you’re ready.

For more significant changes, such as purchasing new appliances or installing solar panels, take your time to research and compare pricing to find the best solution for your budget.

At O1ne Mortgage, we understand the importance of managing your finances effectively. If you need assistance with mortgage services, call us at 213-732-3074. Our team is here to help you find the best solutions for your financial needs.