Electricity costs have increased significantly for most US households in recent years, and unlike some other bills, it is one where your own behavior and small adjustments to appliances actually move the number. Most of what makes a real difference costs little or nothing to implement.
Check whether your utility offers time-of-use rates
Many utilities offer time-of-use pricing, where electricity costs more during peak demand hours, typically late afternoon through early evening, and less during off-peak hours. If your utility offers this and you can shift major electricity use, running the dishwasher, washing clothes, charging an electric vehicle, to overnight or early morning, the savings can be significant. Call your utility or check your online account to see whether a time-of-use rate plan is available and whether your usage pattern would benefit from it.
Heating and cooling is almost always the biggest cost
In most homes, heating and cooling accounts for a large share of electricity use. Small adjustments to thermostat settings make a bigger difference than most other changes. Setting the thermostat to 78 degrees in summer and 68 in winter when home, and allowing it to shift a few degrees further when you are asleep or away, can meaningfully reduce energy use. A programmable or smart thermostat does this automatically and pays for itself relatively quickly in most climates. Ceiling fans on the correct setting also reduce reliance on air conditioning during moderate weather.
Standby power adds up
Electronics and appliances draw power even when switched off. This is called standby or phantom load. Televisions, gaming consoles, cable boxes, desktop computers, and kitchen appliances with clocks or displays all consume power continuously. Plugging these into power strips and switching the strip off when not in use eliminates standby draw. The saving per device is small but across a typical home it can amount to a meaningful reduction over a year.
Water heating is a significant secondary cost
If you have an electric water heater, the temperature setting is often higher than necessary. The Department of Energy recommends 120 degrees Fahrenheit as sufficient for most households. Lowering the setting from the factory default of 140 degrees reduces energy use and also reduces the risk of scalding. Shorter showers and using cold water for laundry where the detergent is suitable are complementary habits that reduce hot water demand.
Weatherization does not have to be expensive
A significant source of heating and cooling loss is air leaking around windows, doors, and any penetration in the building envelope. Draft-proofing tape and door draft stoppers cost a few dollars and can make a noticeable difference in older homes or apartments. Checking whether window air conditioner units are properly sealed when not in use eliminates a common source of both drafts and heat gain. For renters, these are typically acceptable modifications and easy to reverse.
Getting a handle on your utility bill starts with knowing where the electricity actually goes. Many utilities offer free home energy reports or online tools that break down your usage by category. That data makes it much easier to focus effort on the highest-impact changes rather than guessing.