Why Your Electric Bill is So High: 11 Easy Ways to Save on Energy Bills

In 2024, electricity rates are higher than ever, with no signs of them getting cheaper any time soon.

If you’ve been shocked by how high your electricity bill is, you’re not alone! Some likely culprits of an unusually high electricity bill are:

• The time of year

• Where you live

• Your utility provider

Even your habits can impact how much electricity you use. We’ve laid out 11 simple tricks to help bring down your high electricity bill.

Why is my electricity bill so high?

Your electric bill might feel higher than usual for a few reasons. Some of the biggest factors that impact your electricity bill are the time of year, your energy habits, your electric company, your appliances, and even current events!

The time of year 

Nothing will hike up your bill more than heating and cooling your home. According to the Department of Energy (DOE), a staggering 43% of a home utility bill goes to heating and cooling appliances. So, when it's necessary to protect yourself from the elements in the hottest and coldest months of the year, you’ll see a bit of a spike in your bill. 

Heat waves and cold snaps can also change your power usage as you try to regulate your home's temperature. Depending on the types of appliances you have, this could cause your gas bill to increase! 

Your utility provider

The utility company you are serviced by can impact your bill. Some companies charge higher rates and more fees than others. In the U.S., electricity rates have increased by an average of 2.36% each year for the last 25 years. So, if you notice a spike in your bill, it could be due to rate increases. 

Also, some utilities require their customers to pay on a time-of-use rate schedule, which can impact how much you pay by the time of day and the season. 

Your home appliances and energy efficiency

The features and appliances in your home can affect your monthly bill. If you have all electric appliances that are old and outdated, they could be sucking a lot of energy from the grid and costing you more money.

Also, your house may need to be more energy efficient. If there are gaps under your doors or other openings aren’t tightly sealed, your money might be literally going out the window!

That’s why more people are upgrading their appliances to energy-efficient ones that use less energy.

Bad habits

Look, nobody’s perfect. But bad energy habits could be racking up your electricity bills. 

Leaving lights on, doors open, and keeping things plugged in can suck up quite a bit of energy, increasing your utility bills little by little. Even taking those extra long hot showers adds up to a high bill.

Current events

World events inevitably play a role in price increases. Multiple factors can cause electric rates to change, whether it's a fluctuating market, elected officials, foreign policy changes, or infrastructure changes. 

Even events like the COVID-19 pandemic affected energy usage. When people stayed home, they used more electricity than when they left their houses for work, school, or events.

11 ways to lower your electricity bill

Try some of these simple hacks and energy-saving tips to lower your next electric bill.

1. Use nature to your advantage

Don’t keep your lights on or run your heating or cooling system unless you have to to keep your energy consumption low.

If there’s a breeze, open up your windows instead of using your air conditioner. Even using a ceiling fan instead of energy-intensive AC systems can make a difference!  If it’s a bright, sunny day, keep your lights off and soak in that natural lighting by opening your blinds. 

Keeping these habits and being mindful of your electricity usage helps you save a lot of energy (and money!). 

2. Set screen time limits on your devices

We get it—mindlessly scrolling on your phone or binge-watching your favorite TV shows is a guilty pleasure. You can set a time limit on devices so that they lock or shut off after a certain amount of time so you don’t have to keep charging them up or running for hours on end.

Instead, trade your video games for reading books or journaling  – the possibilities are endless!

Making a habit of reducing your screen time has several benefits for your mental and physical health—saving some money is a bonus!

3. Get outside

Dedicating more time to ‘unplugging’ from your home and spending time outdoors can benefit your wallet and your health. Start hiking or exploring your local neighborhood; maybe you can even finally join your friend’s pickleball league. 

You can adjust your thermostat to be warmer or cooler depending on the season, so you’re using less energy to regulate your home's temperature since you won’t be in it!

When you spend more time outside and don't use electricity in your home or change your thermostat, you’ll start to see the savings roll in. 

4. Unplug electronics whenever possible

This tip might seem like a no-brainer – but it can often get overlooked. 

Electronics plugged into power outlets in your home still draw small amounts of power from the grid, even when turned off. These phantom loads can account for up to 10% of your home’s electricity usage. 

Stop paying for electricity you aren’t using. Unplug electronics when they’re not in use, or get smart power strips that can automatically power down devices when they aren’t in use or go into standby mode. 

5. Start small with solar

Residential solar systems are a big investment. Financing options are available, but certain situations can still make it hard to qualify for or afford solar. 

Luckily, you can integrate other solar-powered items into your daily life that cost way less and help lower your electricity use from the grid. Some smaller-scale solar products include:

• Solar generators

• Solar phone chargers

• Solar string lights

Instead of plugging these devices into your outlet, you can power them with the sun, which is free!

6. Replace your shower head

If you haven’t replaced your shower head recently, doing so could help more than you think. According to the Environmental Protection Agency (EPA), swapping out your old shower head for a new one with a WaterSense Label means it meets the correct water efficiency and performance criteria.

Being conservative with your water will help lower your water bill and reduce your energy bills for water heating—it’s a win-win!

7. Wash your clothes in cold water

No one wants to take a cold shower, so another way to reduce your water heater usage is to wash your clothes in cold water as much as possible. 

Hot water heating accounts for 90% of your washing machine's energy to wash your clothes. So, using cold water whenever possible can help tremendously. Just make sure to use the correct cold water detergents so your clothes don’t get ruined. 

If you’re not willing to cut out hot water, you could consider installing a solar hot water heater. Instead of using electricity from the grid to heat your water, it can heat up right on your roof.

8. Get a home energy audit

A home energy audit, or a home energy assessment, is a whole-house inspection that evaluates how your home uses energy. Once you are able to determine the problem areas of your home, you can make the necessary adjustments. 

For these inspections, you can hire a professional to do a walkthrough of your home to check for air leakages in your doorways, thermographic inspections, HVAC system tests, and more. 

Hiring a professional can be pricey, but you can also do a DIY home energy audit. Once you identify where you’re using the most electricity, you can start making improvements, like weatherstripping doors and windows to prevent air leaks or scheduling an HVAC tune-up. 

9. Invest in energy-efficient appliances

There are plenty of energy-efficient options to upgrade to, from refrigerators to washing machines to dishwashers. Energy-efficient appliances do the same job as regular appliances; they just use less energy.

If you want to start small, even just switching from old incandescent bulbs to energy-efficient LED light bulbs can make all the difference. Energy Star reports that replacing your bulbs with their products can save homeowners an average of $40 a year in energy costs—which might seem small, but it will go a long way! 

You can also get a smart thermostat that connects to your heating and cooling system and your home’s WiFi, allowing you to set temperature schedules and monitor your home so you reduce your energy use when you’re not home. 

You may qualify for energy efficiency rebates and incentives to help lower the costs of energy-efficient upgrades.

10. Replace air filters regularly

During the warmer months, make sure you replace the filters in your air conditioner regularly. If you don’t, you could deal with restricted airflow, which in turn causes your air conditioner to run for a longer period and use up more energy.

You should replace the air filters in your air conditioner once a month. This can be crucial if you live in a warmer climate and run your air conditioner for longer periods. 

11. Use time-of-use rates to your advantage

On a time-of-use rate plan, utility companies charge more for electricity during peak times when demand is the highest. 

You can use this system to your advantage and do all your biggest energy-consuming tasks during the off-peak hours when electricity is the cheapest. Off-peak hours are typically in the early morning or late at night. So, instead of starting your laundry right when you get home from work, wait until electricity costs are lower!

Your local utility will be able to provide their set on-peak and off-peak hours for you. 

Is switching to solar the best way to lower electricity bills?

Installing a solar system on your roof is one of the best ways to reduce higher electric bills. The average American home will save almost $1,500 per year on electricity bills with solar panels in 2024. Most solar systems are warrantied to last 25 years or more, which equates to about $37,500 in lifetime savings!

When you install solar panels, you use renewable energy generated right on your roof instead of taking expensive energy from your utility company. Solar panels help shield you from future electricity price increases, too. 

One of the biggest drawbacks to getting solar is the high upfront cost. However, with the high savings accumulated through your electricity bills, you can see a return on your investment in as little as five years! 

If you still have questions about solar, enter your information into our solar calculator to see the estimated cost, savings, and more.