7 steps to save money on electric bills in 2023
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Does it feel like your electric bill only ever goes up? Homeowners are seeing rising electricity bills for several reasons: an ever-increasing number of gadgets, more time being spent at home, and the ever-increasing cost of electricity.
The good news is that there are many ways to slash your electric bills - and you can achieve this fairly easily!
The average cost for residential electricity in the US is 13.7 cents per kilowatt hour (kWh), according to data published by the Energy Information Administration (EIA). The average home uses 886 kWh of electricity per month, so that would work out to be about $120 in electricity costs a month.
But unfortunately, electricity costs do vary state by state so some homeowners might end up paying much more than the average. The same goes for households that might use more electricity than the average home.
Up! Which is not ideal news for homeowners. Every year, homeowners can expect to see a 1.8% increase in electricity every single year. This can add up to hundreds of dollars over the lifetime of homeownership.
Your electricity bill can vary each month though based on outside temperatures and electricity usage. You can expect that utility bills will continue to rise year over year which pay for things like the workers that maintain power lines and the cost to acquire and transport fossil fuels.
As electricity prices continue to rise, most people are looking for ways to reduce their monthly power budget.
Luckily there are many ways to achieve that goal in 2023.
Here are the six most effective ways to save money on electric bills right now.
Some utilities offer different rate plans with cheaper options that you can opt into. Are you on the cheapest electricity rate plan offered by your utility? If not, you could be spending extra money each month for no reason.
Reach out to your utility provider to ask about possible rate plan options, and evaluate whether or not a different plan better suits your electricity usage patterns.
Your heating and cooling systems are almost certainly the biggest consumers of energy in your home. If you can reduce the electricity used in this category, you’ll make a big dent in your overall energy spending.
The easiest way to do so is by replacing your current heating and cooling systems with more energy-efficient models - or potentially a heat pump.
While it is expensive to replace appliances, energy-efficient appliances will save you money on your electricity bill. There are now rebates available that can cut the cost of these upgrades by 30%! You can make sure you’re getting an efficient model by making sure it is an Energy Star-certified model.
In a home energy audit, a professional energy auditor examines your home and performs a series of tests to highlight energy reduction opportunities. We’ve also made a DIY home energy audit checklist if you are interested in performing the audit yourself.
The home energy audit helps you find out where exactly you’re losing money.
Some of the biggest culprits are:
The audit report will list all of the issues with your home, as well as possible solutions for each. If you are completing one yourself, make sure to research the best solutions, whether it is replacing appliances or insulating your home more thoroughly.
Check if you qualify for a free energy audit. Many municipalities and utility companies offer residents free energy audits. The easiest way to check is usually through your city and utility’s website.
There are several measures you can take that will have an immediate impact on lowering your electricity bill.
If a home energy audit was conducted on your home, it’s likely that it suggested one or more of these fixes:
The internet is a handy place to find tips and tricks for reducing your energy usage, which in turn reduces your heating/cooling costs. Some creative ways to do so are:
One other thing you can do is introduce simple daily habits to lower your energy usage:
Every small change you make helps reduce your energy bill.
If solar is suitable for your home, then this is the best way to save on your electricity bills.
For homeowners in many states, it’s possible to install a solar panel system that can offset 100% of your electric usage, eliminating your electric bill completely.
Solar panels have gone up in efficiency and down in price. Incentives and rebates are readily available, and financing a solar installation is more doable than ever before.
Using our calculator, you can find out how many panels you need, how long your payback period is, and more.