Ways to Reduce Your Monthly Utility Expenses

Utility bills are one of those household costs that feel fixed, but they often aren’t. Small changes in how you heat, cool, and run your home can trim the total month after month, and many of them cost little or nothing to try.

Here’s a practical tour of where most homes use energy and water, plus a few phone calls worth making.

Start with heating and cooling

For most households, heating and cooling make up the largest share of the energy bill. That makes your thermostat the single most useful dial in the house.

• Adjust while you’re asleep or away. Setting the temperature back by several degrees for the hours you’re out or sleeping can reduce use noticeably over a season. A programmable or smart thermostat makes this automatic.
• Change or clean filters. A clogged filter makes your system work harder. Check it monthly during heavy-use seasons.
• Seal the obvious leaks. Weatherstripping around doors and caulk around drafty windows are inexpensive weekend projects.
• Use curtains strategically. Open south-facing curtains on sunny winter days and close them at night. In summer, do the opposite.
• Schedule routine maintenance. A yearly tune-up helps equipment run efficiently and can catch small problems early.

The U.S. Department of Energy’s Energy Saver site has detailed guidance on thermostats, insulation, and air sealing if you want to go deeper. For warm-weather specifics, see our summer utility savings ideas.

Give your water heater some attention

Water heating is another big energy user in most homes, and it’s easy to overlook because the tank sits quietly in a closet or basement.

1. Check the temperature setting. Many water heaters ship set higher than most households need. Lowering it to around 120°F is a common recommendation; check your manufacturer’s guidance first.
2. Insulate accessible hot water pipes, especially in unheated spaces.
3. Fix drips promptly. A dripping hot water tap wastes both water and the energy used to heat it.
4. Install low-flow showerheads and faucet aerators. They’re inexpensive and usually take minutes to install.
5. Wash laundry in cold water when the load allows. Modern detergents are designed for it.

Appliances: use them wisely

You don’t need to replace your appliances to save. How you use them matters too.

• Run full loads in the dishwasher and washing machine.
• Air-dry dishes by skipping the heated dry setting, or cracking the door open after the cycle.
• Clean the dryer lint filter after every load, and dry towels separately from lighter clothes so loads finish faster.
• Keep the refrigerator at a sensible temperature and check that door seals close tightly. An old second fridge in the garage can be a surprisingly large energy user; consider whether you truly need it.
• Cook smart. Lids on pots, right-sized burners, and using a microwave, toaster oven, or slow cooker for small meals all use less energy than heating a full oven.

When an appliance does need replacing, look for the ENERGY STAR label and compare the yellow EnergyGuide labels, which estimate yearly operating costs.

Tackle phantom loads

Many electronics draw a small amount of power even when they’re “off”: TVs, game consoles, cable boxes, chargers, printers, and anything with a glowing standby light. Individually these are small, but together they run 24 hours a day.

A few easy fixes:

• Plug entertainment centers and home office equipment into a power strip you can switch off at night.
• Try an advanced or smart power strip that cuts power to accessories when the main device turns off.
• Unplug chargers once devices are full.
• Check game console settings and turn off “instant-on” or rest modes you don’t use.

A sample one-week utility reset

If you’d like a simple plan, try spreading these tasks over a week:

• Monday: Check and change the HVAC filter.
• Tuesday: Look at your water heater setting and adjust if appropriate.
• Wednesday: Walk through the house and move electronics onto power strips.
• Thursday: Swap any remaining incandescent bulbs for LEDs in your most-used lights.
• Friday: Feel for drafts around doors and windows and make a list for weatherstripping.
• Saturday: Install a low-flow showerhead or faucet aerator.
• Sunday: Review your last few utility bills and make the calls described below.

Our seasonal home checklist on the Guides & Tools page can help you keep track.

Call your utility: budget billing and programs

Some of the most useful savings come from a 15-minute phone call or a visit to your utility’s website.

Budget billing (sometimes called levelized or equal-payment billing). Many utilities offer a plan that averages your yearly usage into similar monthly payments. It doesn’t reduce your total cost, but it smooths out the big winter or summer spikes, which makes household budgeting much easier. Ask how the plan handles the year-end true-up so you aren’t surprised.

Questions worth asking your utility:

• Do you offer budget billing or a levelized payment plan?
• Is there a free or low-cost home energy assessment?
• Are there rebates for thermostats, insulation, or efficient appliances?
• Do you offer time-of-use rates, and would they suit our schedule?
• What bill assistance, payment arrangement, or weatherization programs are available, and how do I apply?

Assistance programs. If paying energy bills is a strain, help may be available. The federal Low Income Home Energy Assistance Program (LIHEAP) helps eligible households with home energy costs and is run through states, territories, and tribes. Eligibility rules, benefit amounts, and application periods vary by location and can change, so check the official page or your local agency for current details. Many utilities and states also run their own programs. You can also dial 211 or visit 211.org to find local resources. For more places to look, browse our Household Resources section.

Keep it going

Lowering utility bills isn’t a one-time project; it’s a few good habits plus an occasional check-up. Start with the thermostat and water heater, chip away at phantom loads, and make that call to your utility. Then compare your bills over the next few months to see what made the biggest difference in your home.

Every dollar saved on utilities is a dollar you can direct elsewhere in your budget. If you’re building one now, our guide on how to build a household budget that works shows how to put those savings to good use.