The average American household spends around $1,500 a year on electricity. In warmer states or larger homes, that number is considerably higher. Most people assume that their bill is what it is and that reducing it meaningfully requires either significant investment in solar or dramatic changes to how they live. Neither is true. Some of the largest reductions come from relatively minor changes to existing appliances and habits.
Heating and cooling is where most of the bill lives
In most American homes, heating and cooling accounts for around 40 to 50 percent of the total electricity bill. This is also where small behavior changes produce the largest savings. Setting your thermostat two degrees warmer in summer and two degrees cooler in winter reduces your heating and cooling costs by roughly 3 to 5 percent for each degree. A programmable or smart thermostat that automatically adjusts temperature while you sleep or when the house is empty can save $100 to $180 a year according to the EPA, and the device pays for itself within a year or two.
Standby power is costing you quietly
Electronics and appliances use electricity even when you think they are off. TVs, gaming consoles, desktop computers, phone chargers sitting in the wall, and kitchen appliances left in standby mode collectively account for around 5 to 10 percent of the average home's electricity use. Smart power strips that cut power to devices fully when not in use can help, or simply unplugging entertainment systems and chargers when they are not being actively used. It sounds like a small thing and in isolation it is, but across a full household it adds up.
Switch to LED lighting if you have not already
LED bulbs use roughly 75 percent less electricity than incandescent bulbs and last significantly longer. If you still have incandescent or older CFL bulbs in any part of your home, replacing them with LEDs will reduce your lighting bill noticeably. The upfront cost has dropped considerably and a decent LED bulb now costs under two dollars. For lights that are on several hours a day, the payback period is just a few months.
Run large appliances off-peak
Many utility companies charge more for electricity during peak demand hours, typically weekday afternoons and early evenings. Running your dishwasher, washing machine and dryer late at night or early in the morning can reduce what you pay per kilowatt-hour if your utility offers time-of-use pricing. Check your utility's rate structure. If they offer a time-of-use plan and you can be flexible about when you run large appliances, switching to that plan can reduce your bill by 10 to 20 percent.
Fix the drafts and insulation issues
Air leaking in and out of your home forces your heating and cooling system to work harder than it needs to. Weather stripping around doors, caulk around window frames, and foam gaskets behind electrical outlets on exterior walls are all inexpensive and can collectively make a meaningful difference to how hard your HVAC runs. A tube of caulk costs a few dollars. The energy it saves over a heating or cooling season is worth much more.
Most households that look seriously at their electricity use find meaningful savings available without spending much money or changing anything they would actually notice day to day.