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Why is My Gas Bill So High? 5 Reasons and Ways to Save

Written by Dan Simms , Edited by Catherine Lane

Why is My Gas Bill So High? 5 Reasons and Ways to Save

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If you’re sitting down to pay your utility bills and are surprised by unusually high charges, you’re not alone. Some unavoidable issues, like rising gas prices, have led to increased gas bills across the country. However, there are other root causes, and figuring out which you’re dealing with could help you find a solution for your high gas bill. 

Key takeaways

  • Gas prices in the U.S. were relatively steady from 2010 through 2020 but have been climbing by 15% to 20% per year since then.

  • Upgrading your gas appliances, water heater, and boiler or furnace can drastically reduce natural gas consumption and save you money each month.

  • About 50% of your utility costs go toward heating and cooling, so upgrading your insulation can lead to major savings.

  • Gas bills tend to be higher in winter because your furnace and boiler are working overtime to maintain a comfortable home.


5 reasons your gas bill is so high

There are five key reasons why your gas bill could be higher than you’re used to.

1. Rising gas prices

First and foremost, it’s worth mentioning that every U.S. resident is paying more for natural gas than they were a year ago. According to data from the Energy Information Administration (EIA), the average residential gas cost per 1,000 cubic feet (10 therms) from 2010 through 2020 was $10.68. The price increased by nearly 20% in 2021 and again in 2022 and 2023. Prices fell in 2024 but are still higher than they have been over the past decade.

Unfortunately, rising gas rates are unavoidable unless you move away from natural gas by converting to an electric heat pump. Heat pumps cost about $6,000 to install, but there may be additional costs for capping gas lines and converting to electric. Electrifying various appliances can help reduce your gas bill, but will cause an increase in electric bills.


2. Changes in energy usage

Another reason your energy bills could be higher than usual is increased gas usage. This sounds obvious, but it’s not always immediately apparent as the underlying cause. If you have a college student move back home, have guests or additional family members staying with you, rent out a portion of your home that was unused, or even install things like an instant hot water dispenser or a new jetted bathtub, your natural gas consumption could increase more than you expect as a result.


3. Outdated appliances

Appliances that use natural gas as a fuel gradually become less and less efficient as they age. This is especially true for water heaters, which can accumulate a build-up of minerals inside that makes them work harder and use more natural gas to achieve the same results. Aging appliances could be a reason for a gradual increase in your gas consumption and utility charges.


4. Weather

A significant portion of your gas consumption goes toward heating your home, and the degree to which you need to heat your living space will affect consumption. During a particularly cold winter with consistently freezing temperatures, your furnace or boiler will naturally need to use more gas to maintain the same level of comfort and meet your heating needs.


5. Poor insulation or energy efficiency

Like appliances, the insulation in your home degrades over time, and settling and aging of building materials can create inefficiencies that result in heat loss. Old weatherstripping and caulk on windows and doors can create air leaks, and insulation can get wet and lose its insulating capabilities. As this happens, you’ll need to call on your heating system more often to maintain a comfortable indoor temperature, which means increasing how much gas you use and higher natural gas bills over time.


Warning! If you notice an extreme increase in your gas bill, it could be a sign of a gas leak. If you’re billed for an unusual amount of gas that you can’t trace back to energy use habits or rising rates, there could be an issue with the gas lines in your home. Contact your gas utility company or a professional contractor if you suspect a gas leak. If you can smell gas, don’t hesitate to call your local fire department!

6 tips on how to lower your gas bill

Now that you know some of the top reasons why your gas bill is high, you can take action to fix the issues, restore your home’s energy efficiency, and save money going forward on your utility bills. Here are seven energy-saving tips that can help you use less gas.

1. Complete a home energy audit

One of the best things you can do to identify the underlying cause of your increasing gas bills is to have a home energy audit done. A pro will assess your home, find areas to improve, and even recommend specific things you can do to increase efficiency and save on your monthly bills. Some companies can also carry out those recommendations by sealing ductwork, installing new insulation, and more.

Home energy audits cost an average of $450, but they can save you far more than that over time. Additionally, homeowners can use the federal government’s Energy Efficiency Home Improvement Credit to get up to a $150 tax credit on the cost of an energy audit.


2. Install new appliances

If you believe aging appliances are causing high gas bills, upgrading to high-efficiency appliances is the best course of action. A new gas stove costs an average of $2,500, while a new gas water heater costs around $1,700. Since more than half of household natural gas usage goes toward space heating, upgrading to a new gas furnace will provide the most bang for your buck — although it will cost an average of $6,000.

You can maximize your gas bill savings in the long run by choosing ENERGY STAR-certified products. Certified furnaces are up to 15% more efficient, and certified water heaters are up to 10% more efficient, so they will lead to the greatest savings on your gas bills.

You can also take advantage of the federal government’s energy efficiency rebates for upfront savings on energy-efficient appliances, including a tax credit of up to $1,200.


3. Upgrade insulation

Whether you’re upgrading to a new furnace or not, installing new insulation can reduce how hard your boiler or furnace has to work and, in turn, how much you spend on natural gas. Total insulation replacement can cost between $5,000 and $10,000, but even small changes like adding blown-in insulation to your attic can have a major impact.


4. Seal drafts and cracks

Insulation is great for reducing heat loss through solid walls, but you’ll also want to address drafts in windows and doors, as well as cracks in your ductwork. Drafty windows and doors can drive up gas bills because you need more heating power to offset the heat that you are literally losing out the window. Cracks in your ductwork can leak heated air to the void behind your walls, which means your HVAC system needs to work harder and use more gas to heat your actual living space.


5. Use smart thermostats

Smart thermostats give you total control over how your heating system functions and can help you save money on your utility bills. You can set lower temperatures during the day when no one is home and at night if you prefer cooler temperatures for sleeping. According to the U.S. Department of Energy, you can reduce your heating bills by around 10% by dropping the set temperature 7 to 10 degrees for just eight hours a day. Programmable thermostats are great for automating those savings.


6. Change your energy habits

Finally, you can make a conscious effort to change your energy habits. Consider taking short showers rather than baths to reduce how much hot water you need, wearing long pants and sweatshirts in the winter and keeping the temperature a few degrees cooler, and cooking multiple meals at once to make the most use out of your heated oven.


What uses the most gas in a home?

The furnace or boiler uses the most natural gas in a home in most cases, with the only exceptions being in very hot climates where home heating is rarely called on. The U.S. Department of Energy estimates that around 50% of all of the energy used in a home goes toward space heating. Around 20% goes toward water heating. As such, upgrading your furnace or boiler to a high-efficiency model will often be the best way to reduce your gas bills, and replacing a gas-fired water heater will be the next best option.


Saving money on your utility bills is easy

Although you don’t have control over how much your electric or gas company charges, there are simple changes you can make to reduce how much you spend each month. Aside from the gas-saving tips above, you can also consider installing solar panels. While solar panels can’t lower your gas bill, they can lower how much you spend on electricity each month, reducing your overall monthly utility costs.

Homeowners can save over $1,500 per year when they make the switch to solar. After about 10 years, most solar panel systems pay for themselves and start generating free, renewable electricity. You can use our solar calculator to find out how much you can save on your utility bills each month by going solar so you can stop worrying about rising utility costs!

Calculate how much money solar panels can save you on your monthly utility bills by using this calculator
Written byDan SimmsSolar Writer

Dan has been a solar proponent for more than a decade now, and he has been researching and writing about solar and renewable energy for the past five years. He has first-hand experience with solar conversion, and he uses that and his research to help homeowners lower their electric bills and reduce their carbon footprint through solar education and adoption. He has written for major publications, including CNN, USA Today, and EcoWatch, and he has...

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