How to Lower Your Electric Bill: 15 Moves That Actually Work

Most people try two things to cut their electric bill: turn off lights and nudge the thermostat. Both help a little. But the bigger savings usually come from things nobody thinks to check — who's actually supplying your power, what your water heater is set to, whether your state has a program that discounts your bill without you changing anything at all.

Here's the full list, grouped by what it costs you to do.

The 15 Ways to Lower Your Electric Bill

Free (Do These This Week)

1. Check your rate plan. If you live in a deregulated state, there's a good chance a third-party supplier is on your bill charging well above the utility default rate — often without you remembering signing up. Look for the supplier line on your bill and compare it to your utility's standard rate. Switching back to the default can save $20–$80 a month, and it takes one phone call.

2. Adjust your thermostat. Up in summer, down in winter. Every degree is worth about 3% of your heating and cooling cost, and two degrees is close to the line where most people stop noticing.

3. Cut the standby drain. Devices that are "off" but still plugged in account for 5–10% of a typical home's electricity. The worst offenders are cable boxes, gaming consoles, and anything with a glowing light or a wall wart. A smart power strip handles it without you thinking about it.

4. Turn your water heater down to 120°F. Most are shipped at 140°F, which is hotter than anyone showers. Dropping it saves 4–8% on water heating and reduces scald risk.

5. Run the dishwasher and laundry at night. This only matters if you're on a time-of-use rate — but if you are, the same load can cost half as much after peak hours. Check your rate plan first.

6. Line-dry what you can. The dryer is one of the hungriest appliances in the house. Even skipping a few loads a week adds up.

Low-Cost Upgrades (Under $200)

7. Replace any bulb that gets hot to the touch. That's how you spot the incandescents and halogens you missed. LEDs use a fraction of power and last years longer. Dollar for dollar, it's still the best upgrade most homes can make.

8. Install a smart thermostat. $100–$250, and it saves 8–15% on heating and cooling — mostly by not conditioning an empty house. Many utilities offer a rebate that covers a chunk of the cost.

9. Weatherstrip the doors, caulk the windows. Unglamorous, cheap, and worth 5–10% on heating and cooling. If you can feel a draft near a closed door, that's money leaving.

10. Swap in low-flow showerheads. A $20 part that cuts hot water use 20–40%. Modern ones don't feel weak the way early models did.

11. Wrap the water heater and the first six feet of pipe, per energy.gov. An insulating blanket and some foam pipe sleeves cost about $40 and cut standby heat loss 25–45%. This is the highest return per dollar on the entire list.

Bigger investments ($500-$2,000)

12. Add attic insulation. Most older homes have less than current code calls for. Bringing it up to spec cuts heating and cooling 10–20%.

13. Seal leaky ductwork. In a typical home, a meaningful share of conditioned air never reaches a room — it leaks into the attic or crawlspace. Sealing recovers 20–30% of that loss.

14. Replace appliances that are 15+ years old. Newer ENERGY STAR models can use 40–50% less electricity, with the biggest gap in refrigerators. Worth planning for when something is on its last legs — replacing an appliance that still works usually takes years to pay for itself.

The one most people don't know about

15. Subscribe to Community Solar. If it's available in your state, this is the rare option that lowers your bill without changing anything in your house. You subscribe to a share of a local solar project, and the power it produces shows up as credits on your utility bill. No panels on your roof, no equipment, nothing to install. Savings typically run 5–20% on your electricity costs.

What this looks like in practice

Ogechi and Chidi Okonkwo rent a 2-bedroom in Somerville, MA. Their Eversource bill was averaging about $178 a month — right around the Massachusetts average, and high enough that they started paying attention.

They worked through the free items first: two smart power strips for the TV and office setup, water heater down to 120°F, thermostat moved two degrees in each direction. Over the next few billing cycles their average came down to about $151.

Then they spent $180 replacing the last of the incandescents with LEDs and $159 on a smart thermostat. Average dropped again, to about $132.

Last, they subscribed to a Community Solar project in Eversource's territory. Their bill now carries a solar credit averaging about $95 a month, and they pay Altus Power about $81 for those credits — roughly $14 a month back in their pocket for doing nothing further. The credit runs larger in summer and smaller in winter, so any single month will look different, but the annual math holds.

From $178 a month to about $118, in under a year, in an apartment they don't own.

Things That Don't Matter As Much As You Think

• Turning off lights aggressively. LEDs use so little electricity that this saves pennies.

• Fancy energy monitoring devices. Acting on data saves money, not viewing it.

• Replacing windows for efficiency alone. Payback is usually 15-25 years.

Frequently Asked Questions

What's the single best way to lower my electric bill?

Usually LEDs and a smart thermostat if starting from scratch, then Community Solar where available.

How much can I actually lower my electric bill?

Most households can cut 25-35% through rate plan checks, efficiency upgrades, and community solar.

Is Community Solar a legitimate way to lower my electric bill?

Yes. It's a state-regulated program in 23 states. 5-20% savings on electricity. No installation, no upfront cost. See if you’re eligible for Altus Power Community Solar here.

Does closing vents in unused rooms lower my bill?

Usually no. Modern HVAC systems are sized for a specific airflow.

Will using my AC less save money?

Yes. AC is the single largest electricity use in most homes with central AC.

The Priority Order

1. This week: Check your rate plan. Unplug always-on electronics. Adjust thermostat. Lower water heater.

2. This month: Buy and install LEDs. Install a smart thermostat. Weatherstrip doors.

3. Within 90 days: Sign up for Community Solar if available in your state.

4. When possible: Add attic insulation, seal ducts, replace aging appliances with ENERGY STAR.

See if community solar is available in your state →

Altus Power is one of the largest owners and operators of commercial-scale solar in the United States, with 1.3+ GW of operating solar across 30 states and Washington DC. One of the pioneers of Community Solar, Altus serves more than 40,000 subscribers across 9 states including New York. Learn more about Altus Power or explore our Community Solar FAQ.