Rising energy costs continue to burden American households, with the average family spending over $2,000 annually on utility bills (U.S. Department of Energy, 2024).
At the same time, we are all under pressure to reduce our carbon footprint and live a more eco-friendly lifestyle.
It's often difficult to strike a balance between the two (since sustainable choices are generally more expensive), but saving energy at home is one way in which you can live both cheaper and greener.
By making just a few simple changes, you could make your home more energy efficient and slash your utility bills, while helping combat climate change.
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From smart technology to basic weatherproofing, here are 12 practical tips to help you save energy and money at home by lowering your utility bills.
These tips are the most effective ways to save energy at home because they target the areas in which American households typically use the most energy.
HVAC (Heating, Ventilation, and Air Conditioning) systems consume the largest portion of home energy, accounting for 52-70% of the typical American household's energy use (U.S. Energy Information Administration, 2024).
This makes temperature control the most significant opportunity for energy savings in most homes. Even small adjustments to how you heat and cool your home can substantially reduce energy use and cost.
Other significant energy consumers include:
The use of smart technology to control each of these areas offers an opportunity to save money over the long term.
Smart home devices offer convenient ways to monitor and reduce energy usage through automation and real-time feedback.
Smart thermostats learn your schedule and preferences, which allows them to automatically adjust temperatures when you're away or asleep.
"Proper use of a smart thermostat can reduce heating costs by 8-12% and cooling costs by 10-15% annually," according to the U.S. Department of Energy (ENERGY STAR, 2024; Houston Association of Realtors, 2024).
Popular models include:
The collective impact is substantial. The 19.6 million smart thermostats installed in American homes by 2022 saved 1.4% of the nation's heating and cooling energy.
If adopted in all suitable homes, they could save 45.4 TWh annually – equivalent to powering 4.2 million households (Utility Dive, 2023).
LED bulbs use 75% less electricity than traditional incandescent bulbs and last 25 times longer (U.S. Department of Energy, 2024).
Adding smart controls can further reduce consumption by 20-40% through:
A household replacing all 40 bulbs with smart LEDs could save approximately $240 annually on their electricity bill (Palmetto, 2024).
Electronics continue to draw power even when turned off – a phenomenon called "phantom" or "vampire" load.
Smart plugs eliminate this waste because they completely cut power to devices when not in use, saving 5-10% on electricity bills (up to $100 annually) (SwitchBot, 2024).
These devices typically use only about 10 kWh yearly (costing around $1.30), which means they typically pay for themselves within months (CNET, 2023).
A professional energy audit is worth the cost if you find your annual energy bill to be much higher than is typical for your area. The audit provides a comprehensive assessment of your home's efficiency, and identifies specific improvements that will save the most energy.
The average cost of a home energy audit ranges from $212 to $750, depending on the service level and home size (Angi, 2024; Thumbtack, 2024). However, the Inflation Reduction Act now offers a federal tax credit covering 30% of audit costs (up to $150) (ENERGY STAR, 2024).
"Energy audits typically identify ways to reduce energy bills by 15-30% through targeted improvements," says the U.S. Department of Energy (Kiplinger, 2024; Panasonic Green Living, 2024).
This table shows the common recommendations included in audits, and the typical cost and annual saving of each.
| Improvement | Typical Cost | Annual Savings |
|---|---|---|
| Re-insulating home | $2,000 | $1,600 |
| Sealing ductwork | $700 | $700 |
| HVAC tune-up | $150 | $570 |
| Weatherstripping | $20 | $700 |
(Solar Reviews, 2024)
Most improvements pay for themselves within 5-10 years, while immediately enhancing home comfort and resale value (Solar Reviews, 2024; Panasonic Green Living, 2024).
If you cannot afford an energy assessment or don't feel you need one, there are some free, simple changes you can apply today that can reduce the amount you pay immediately.
Not all energy-saving measures require significant investment. These no-cost or low-cost actions yield immediate savings.
Simply adjusting your thermostat by 7-10°F for 8 hours daily (while sleeping or away) can reduce heating and cooling costs by 10% annually (Investopedia, 2024; U.S. Department of Energy, 2024).
In summer, set your thermostat to 78°F (25.6°C) when at home and higher when away. In winter, aim for 68°F (20°C) when at home and lower when sleeping or away.
Drafts around windows, doors, and other openings can waste 5-30% of your home's energy (Payless Power, 2024), but simple DIY insulation prevents drafts and keeps your room air warm in winter or cool in summer.
This is especially recommended for making your bedroom more eco-friendly.
"Weatherstripping and caulking are among the most cost-effective energy improvements available," according to the Environmental Protection Agency. Basic weatherstripping materials cost as little as $20 but save up to $700 annually (Solar Reviews, 2024).
Lower your water heater temperature to 120°F (48.9°C) to reduce energy use while still providing comfortable hot water.
Set your washing machine to wash on a cold cycle, line dry laundry instead of using your dryer, and only run your dishwasher when it's full.
Installing low-flow showerheads and faucet aerators further reduces hot water consumption without sacrificing performance (Green Think Inc., 2024).
The Inflation Reduction Act of 2022 expanded tax credits and rebates for energy efficiency improvements:
In 2023 alone, 3.4 million American families saved a total of $8.4 billion through these incentives (U.S. Treasury Department, 2024).
ENERGY STAR certified appliances are worth the cost because they use 10-50% less energy than standard models, potentially saving up to $500 annually on utility bills (Nexstar Homes, 2024).
While energy-efficient models cost more initially, the lifetime savings typically exceed the price premium. The following examples illustrate potential savings.
When shopping, look for the yellow EnergyGuide label that estimates annual operating costs and compares efficiency with similar models.
You can track progress using smart meters and energy monitoring systems, which provide real-time feedback on your home's energy consumption. Smart meters help you identify unexpected usage patterns and verify savings from efficiency improvements.
Over 80% of North American homes now have smart meters installed, with coverage projected to reach 94% by 2029 (Renewable Energy World, 2023). Many utility companies offer free apps that display your home's energy use patterns.
When you implement one or preferably all of these energy-saving strategies, you will see a difference in your bills within a matter of weeks or even days.
Most American households can expect to significantly reduce their environmental impact and save hundreds or even thousands of dollars annually on utility bills, without any impact on their lifestyle.
For more tips like these, check out our free Go Green and Save Money guide.
