Feeling the heat? Here are some ways to lower your electric bill

Are your energy bills making you sweat?

Several factors are adding up to higher costs for consumers. The U.S. government is predicting record demand for power in 2025 and 2026, thanks in part to the rapid rise of AI data centers and warming temperatures.

Residential energy prices have outpaced the Consumer Price Index since 2022.

READ MORE: Does turning the A/C off when you’re not home actually save electricity?

And the U.S. Energy Information Administration, a federal government agency that tracks and distributes energy information, predicts heat waves will contribute to a 12% increase in wholesale energy prices this summer alone. June 2025 was the third hottest June on record, behind 2023 and 2024.

Consumer groups and think tanks predict the changes in President Donald Trump’s new “big bill,” including reduced or eliminated subsidies for clean energy, could raise your energy costs by more than $100 a year in the next 10 years.

Facing these challenges, here are four tips for reducing your energy consumption and lowering your home electric bill.

Optimize your infrastructure

Heating and cooling are typically the power players of home energy use — accounting for about 43% of your utility bills, according to the Department of Energy.

If your home heating or cooling system is nearing the end of its life, choosing a new energy-efficient system can yield big savings.

While researching new appliances, consider those that have an Environmental Protection Agency Energy Star label, meaning it meets energy efficiency standards. The EPA also provides expected energy use and efficiency ratings for a wide variety of products, ranging from room air conditioners to boilers.

READ MORE: Why your home might feel hotter than the thermostat says, and tips for cooling it down

If you aren’t in the market for new appliances, consider how to make your existing systems more efficient.

“The EPA says that actually nine out of 10 homes are under-insulated,” said Courtney Lindwall, a home and tech reporter at Consumer Reports. An under-insulated home lets out the air your heating or cooling system treats, while letting in outside hot or cold air.

Making your home more weather-proof “can be a relatively low-cost project, like adding insulation to your attic or your floors,” Lindwall said. Plugging air leaks in drafty windows and doors will help, too.

Investing in a smart thermostat can also make a difference. They can be adjusted with an app if you aren’t at home, and even learn your routines to optimize your existing heating or cooling system.

Make daily changes

Simple measures that don’t require major purchases or investments can save money, too.

“If it’s a hot day, keeping your drapes closed in the peak sun … can really reduce cooling costs,” Lindwall said.

Make simple adjustments to existing appliances, such as lowering the temperature on your water heater and washing your clothes in cool water. Those changes help you save in two ways. A cooler water heater leaks less heat into surrounding areas, and uses less energy heating water to a higher temperature. These changes could result in savings of up to $400 a year, according to the EPA.

READ MORE: Tips for staying safe in extreme heat

While it might be a bit uncomfortable, lowering your thermostat even a few degrees in the winter or raising it in the summer can lead to noticeable savings.

And, when an older light bulb goes out, replace it with an LED light bulb. They use up to 90% less energy than classic incandescent bulbs.

Be a knowledgeable energy customer

Your utility company may offer a range of resources to help you save money.

Check your monthly bill. While autopay has its charms, Lindwall recommends paying attention to charges every month. You might be able to see how your energy use compares to similar homes in the area, or learn which time of the year you use the most electricity.

“You can see patterns and trends and maybe notice what is driving your electricity consumption and then make behavior changes accordingly,” Lindwall said.

Consider an energy audit, especially if you don’t know where to start.

“An energy audit is when a certified inspector comes to your home and finds your home specific energy-efficiency pain points,” Lindwall said.

Your utility company may offer rebates to cover the cost, or even offer audits for free.

Consider a “time-of-use” plan if you work or sleep on a different schedule than most.

“Basically, [energy companies] charge more if you’re using electricity during peak hours, and then less if using it during off peak hours,” Lindwall said.

But be sure you know when those off-peak hours are, or you could wind up paying more.

Be a wise consumer

The average monthly electric bill for a residential customer in 2024 was $144, according to the U.S. Energy Information Administration. That’s roughly $1,728 per year.

“Right now, between higher cost of living in general, higher energy prices, I think now is the time to be more mindful of your energy consumption,” Lindwall said.