How to save money on your electric bill

Understanding your electric bill

Before diving into money-saving tips, it’s essential to understand how your electric bill is calculated. Electricity bills comprise two main components: the fixed charge and the variable charge. The fixed charge is a flat fee that covers access to the electrical grid, which includes the cost of meter rental and reading, network, and line company charges.

Meanwhile, the variable charge is based on the amount of electricity consumed, which is measured in kilowatt-hours (kWh). While the fixed charge is likely non-negotiable every month (or can be adjusted with discounts), the variable charge depends on how much electricity you use.

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How to save money on electricity

Cooling your home (or heating it if you rely on electric heating) is the biggest way you can spend more on electricity, which is why it’s important to consider the weather, your comfort, and the efficiency of your home when looking to save money on your electric bill. Consider these options:

Do an energy audit

Many utility companies will offer a home energy audit for free, where a professional will inspect your home for areas that are wasting electricity or draining energy. This will include checking door and window seals, vents and ductwork, and appliances. Not only can your utility company recommend repairs and upgrades, but they can also offer incentives or rebates to help you upgrade without breaking the bank.

Ask for discounted rates

Some utility companies can offer you a cheaper rate during times when you’re using less electricity, such as at night or early in the day. This is known as a time-of-use rate plan. If you’re doing intensive computer work, washing and drying clothes, or other energy-intensive activities, then consider doing them at off-peak times—which may also justify those late nights!

Replace your older appliances

If you have older refrigerators, air conditioners, ovens, or washers and dryers, it may be time to upgrade to newer and more energy-efficient models. Look for appliances with the ENERGY STAR label, which indicates that they meet high energy efficiency standards set by the EPA. While you don’t have to remodel your kitchen, you can install LED light bulbs, low-flow showerheads, and smart thermostats to make major upgrades to your living space.

Keep your appliances maintained

Replacing appliances is expensive, and it’s not within everyone’s budget or timeframe to do so. As an alternative, you can keep your appliances running efficiently by cleaning or replacing air filters and vacuuming dust to make sure that everything in your house is working at peak efficiency.

Adjust your thermostat

You don’t have to sacrifice comfort for efficiency. If your home uses electricity to heat it, be sure to lower the thermostat by a few degrees so you’re not warming an empty home when you’re not there. At night, you can also adjust your temperature and rely on blankets and pajamas to keep you warm. A smart programmable thermostat can easily be set to your time and preferences.

Insulate your home

If your window and door seals are old or cracked, they can let out air and cause you to turn your thermostat or AC up even more—which can sap up energy costs.

Use smart power strips

Small appliances that are constantly plugged in—such as coffeemakers, toasters, and laptops—can leech power even when they’re turned off. Instead, use power strips and surge protectors that feature on/off switches, which will cut off power right from the source when you’re not using these devices.

Saving money on your electric bill doesn’t have to be complex or require an electrician. By implementing these simple strategies, you can lower your electricity usage, save money, and contribute to a more sustainable environment. Check out more budgeting tips that can help you build savings, run a small business, or avoid scams.