How to Save on Your Electric Bill: 12 Proven Moves

Saving on your electric bill isn't complicated, but it requires acting on the right things.

The 12 Moves That Save the Most

1. Optimize Your Rate Plan

In deregulated states, compare your current electricity supply rate against your utility's default. Third-party suppliers often roll customers from teaser rates to variable rates 20-40% above utility defaults.

Savings: $20-$80 per month for customers stuck on bad variable rates.

2. Kill Phantom Load with Smart Power Strips

Your TV, cable box, game console, smart speakers, computer, and chargers collectively pull 5-10% of your home's electricity 24/7, even when "off."

Savings: $10-$30 per month.

3. Swap Incandescent and Halogen Bulbs for LEDs

LEDs use 75-90% less electricity for the same brightness.

Savings: $5-$20 per month. Payback: 2-4 months.

4. Install a Smart Thermostat

ENERGY STAR-certified smart thermostats save 8-15% on heating and cooling.

Savings: $10-$30 per month. Payback: under a year.

5. Lower Your Water Heater Thermostat

Most ship at 140 degrees. Department of Energy recommends 120 degrees.

Savings: $3-$10 per month.

6. Adjust Your Thermostat by 2 Degrees

Each degree is roughly 3% of heating and cooling cost.

Savings: $5-$25 per month.

7. Seal Air Leaks

Caulking around windows and weatherstripping around doors costs $20-$60 and cuts 5-10% of heating and cooling costs.

Savings: $5-$15 per month.

8. Upgrade Water-Using Fixtures

Low-flow showerheads, low-flow aerators on sinks, and high-efficiency washing machines cut hot water use 20-40%.

Savings: $5-$15 per month.

9. Run Major Appliances Off-Peak

On time-of-use rate plans, off-peak rates are often 40-60% lower.

Savings: $10-$40 per month on TOU plans.

10. Keep HVAC Filters Clean

Replace every 1-3 months.

Savings: $3-$10 per month.

11. Replace Aging Appliances Strategically

ENERGY STAR models use 30-50% less electricity than older units.

Savings: $5-$25 per month per aging appliance replaced.

12. Subscribe to Community Solar

Community Solar lets you subscribe to a local solar project and receive credits on your utility bill, delivering 5-20% savings with no installation and no upfront cost.

Savings: $10-$40 per month depending on state and usage. Setup time: under 10 minutes.

Example: The Reyes Family in Springfield, MA

Ana and Luis Reyes own a three-bedroom home in Springfield, Massachusetts. Their Eversource bill hit $215 in January 2025.

Over four weekends, they:

• Swapped every bulb in the house to LEDs ($85)

• Installed a smart thermostat ($180, $100 after tax credit)

• Caulked every window and weatherstripped three doors ($42)

• Lowered the water heater to 120 degrees (free)

• Replaced three showerheads with low-flow models ($60)

Their February bill dropped to $184. March was $171.

Then they enrolled in Community Solar. Their April Eversource bill showed a solar credit of $80. They paid Altus Power $68 for those credits, which is another $12 in savings that month, with no upfront cost and no equipment on their roof.

By the end of the year, their monthly average was down to $150 from a $215 peak. That's $65 a month saved, or $780 a year. Their total investment was $287, so they made it back in about 4.5 months.

The Stacking Math

Even at the low end across the board, that's $91 per month in combined savings.

Frequently Asked Questions

What's the easiest way to save on my electric bill?

LEDs, smart power strips, and lowering the water heater temperature.

How much can I save monthly with all these changes?

Most households save $50-$150 per month by stacking efficiency upgrades, rate plan optimization, and Community Solar.

Does Community Solar really save money without installing anything?

Yes. It's a state-regulated program where you subscribe to a local solar project and receive credits on your utility bill. Here’s a step-by-step guide to signing up.

Is it cheaper to wash clothes at night?

Only on time-of-use rate plans.

Should I unplug my appliances when I leave the house?

For phantom-load devices (TVs, game consoles, cable boxes, chargers), yes. Not for refrigerators and freezers.

What's the best ENERGY STAR upgrade?

Heat pumps and heat pump water heaters deliver the biggest efficiency gains.

The Bottom Line

Saving on your electric bill is less about finding one silver bullet and more about stacking several targeted moves. Pull every lever and you'll save 25-35% on your bill within a year.

Check Community Solar availability in your state →

Altus Power, a leading commercial scale power company, is part of the United States’ solar transformation with solar projects in 30 states and the District of Columbia, more than 1.4 gigawatts of operating solar assets, more than 450 enterprise customers, and more than 40,000 Community Solar subscribers. Learn more about Altus Power’s commercial solutions and its Community Solar Program.