Cutting Utility Bills: A Stepwise Plan
With a budget in place, we can now target the variable utility expenses. Let’s break down the big three—electric, gas, and water—into simple, actionable steps that can help you save money every month. Many of these changes cost nothing but a little awareness.
Your Electric Bill
Your electric bill is often the largest utility expense, especially in the summer and winter. Your electricity usage is measured in kilowatt-hours (kWh). A kilowatt-hour is a unit of energy equal to using 1,000 watts of power for one hour. Your bill multiplies your total kWh usage by your utility’s unit rate, which is the price per kWh. To lower the bill, you must lower the usage.
One of the easiest ways to start is with your thermostat. The U.S. Department of Energy suggests setting it to 78°F in the summer when you’re home and a few degrees higher when you’re away. In the winter, aim for 68°F. Each degree you adjust can save you up to 3% on your heating or cooling costs. A programmable thermostat is a great investment, as it can automate these changes for you.
Next, look at your lighting. If you still use old incandescent bulbs, you are wasting money. The Wattage of a bulb tells you how much energy it uses. A 60-watt incandescent bulb uses far more energy than an LED bulb that produces the same amount of light with only 9 watts. Swapping your five most-used bulbs to LEDs can save you over $75 a year. We’ll show a full example of this later.
Don’t forget about “phantom” or “standby” power. Many electronics, like TVs and coffee makers, use electricity even when they’re turned off. Plug these devices into a power strip and simply flip the strip off when you’re not using them. It’s a small habit with a real payoff. Finally, when doing laundry, wash your clothes in cold water whenever possible. About 90% of the energy used by a washing machine goes to heating the water. This one change can make a noticeable dent in your bill.
Your Gas Bill
If you have natural gas, your water heater is likely the biggest consumer. Most water heaters are set to 140°F by the manufacturer, but for most households, 120°F is perfectly safe and sufficient. Lowering the temperature by 20 degrees can save you up to 10% on your water heating costs. Check your owner’s manual for instructions on how to adjust it safely.
Annual maintenance also helps. A professional can check that your furnace or boiler is running efficiently. If you have an older gas water heater, periodically draining it to remove sediment can improve its performance and lifespan, though it’s best to hire a plumber for this if you are unsure.
Your Water Bill
When it comes to tips for reducing water usage, stopping leaks is priority number one. A single toilet that runs constantly can waste over 200 gallons of water a day. To check for a silent leak, put a few drops of food coloring in the toilet tank. Wait 15 minutes without flushing. If color appears in the bowl, you have a leak that needs fixing. We’ll cover how to fix this simple problem in our DIY section.
Consider your fixtures. The EPA WaterSense program labels faucets and showerheads that are at least 20% more water-efficient than standard models. Installing a low-flow showerhead can save thousands of gallons of water per year for a family. Another factor to consider is a washing machine’s water factor, which measures the gallons of water used per cubic foot of capacity. When it’s time to replace your washer, look for a low water factor number to ensure long-term savings.
Finally, look for special programs from your utility provider. Many offer a “budget billing” or “level pay” option. This doesn’t reduce your total annual cost, but it averages your yearly usage into a predictable, fixed monthly payment. This helps you avoid shocking seasonal spikes and makes budgeting much easier. Also, ask about any available energy-efficiency rebates. A rebate is a partial refund you can get for purchasing an energy-efficient appliance, like a new air conditioner or smart thermostat.
