Key takeaways
- Start with no-cost changes: thermostat settings, water heater temperature and standby power.
- Seal drafts before buying new equipment; it makes everything else work better.
- Check your utility for free audits, rebates and alternative rate plans.
Your electric and heating bills depend mostly on two things: how much energy your home uses and the rate you pay for it. You have more control over both than it might seem.
Free and low-cost changes
- Adjust your thermostat. The U.S. Department of Energy says setting it back 7°F to 10°F for eight hours a day can save up to 10% a year on heating and cooling.
- Lower your water heater to 120°F if it’s set higher.
- Wash laundry in cold water and run the dishwasher only when full.
- Switch to LED bulbs where you still have old ones.
- Unplug or use smart power strips for TVs, game consoles and chargers that draw power when off.
- Change your furnace filter every one to three months.
Seal the leaks
Drafts around windows, doors and outlets let heated air escape. Weatherstripping, caulk and foam outlet gaskets are inexpensive and can make rooms noticeably more comfortable. Our sister site HomeJolly has a step-by-step winterizing checklist.
Call your utility
Utilities often offer programs many customers never use:
- Free or discounted home energy audits that show where you’re losing heat.
- Rebates on smart thermostats, heat pumps, insulation and efficient appliances.
- Time-of-use rates, which charge less during off-peak hours. Useful if you can shift laundry and dishwashing.
- Budget billing, which averages your bill over the year. It makes payments predictable but doesn’t lower the total.
- Bill assistance programs for households that qualify based on income. The federal LIHEAP program helps with heating and cooling costs through state agencies.
Shop your rate if you can
In states with deregulated energy markets, you can choose your electricity or gas supplier. Compare fixed rates carefully and avoid variable-rate plans that can jump after an introductory period. Read the contract length and cancellation fee.
Bigger upgrades
When equipment is due for replacement, efficiency upgrades can pay off over time: heat pumps, heat-pump water heaters, attic insulation and ENERGY STAR appliances. Check for utility and state rebates before you buy. For costs and contractor tips, see HomeJolly’s guide to lowering energy bills.
WalletJolly may earn a commission from links on this page. Rates, prices and rules mentioned are current as of Oct. 28, 2026 and can change. This article is general information, not financial, tax, insurance or legal advice.
