How to lower your winter electric bill
Last updated 2026-10-21
In electrically heated homes, heating is usually the biggest cost of the year. The cheapest heat is heat you do not make: lower setpoints, a tighter house, and heating people and rooms instead of the whole house.
1. What heating costs
Example: a house needing an average 25,000 BTU/hr of heat for 10 hours a day, at 17.99¢/kWh.
| Heat source | kWh/month | Cost/month |
|---|---|---|
| Electric furnace / baseboard (resistance) | 2,198 | $395 |
| Heat pump (avg. seasonal COP ~2.8) | 785 | $141 |
| One 1,500 W space heater, 8 h/day | 216 | $39 |
| Electric blanket, 8 h/night | 24 | $4 |
All resistance heaters (space heaters, baseboard, oil-filled radiators, infrared, furnace heat strips) turn 1 kWh into 3,412 BTU. None is "more efficient" than another per kWh, whatever the box says. A heat pump moves 2 to 4 kWh of heat per kWh of electricity. Compare electric, gas, propane and oil with the heating cost comparison.
2. Space heater math
- A 1,500 W heater on high: 1.5 kWh per hour = $0.27/hour.
- With its thermostat cycling about 60% of the time, 8 hours a day: about 216 kWh, $39 a month.
- It saves money only if you turn the main heat down. Heat one room to 68°F and let the rest of the house sit at 60 to 62°F.
- It does not save money in a home with a working heat pump, unless the room is far colder than the rest of the house.
Safety: plug space heaters directly into a wall outlet (no extension cords or power strips), keep 3 feet of clearance, and use models with tip-over and overheat shutoff. A 1,500 W heater uses most of a 15 A circuit.
See costs for space heaters, oil-filled radiators and baseboard heaters.
3. Thermostat setbacks
- Home and awake: 68°F.
- Asleep or away: 60 to 62°F for resistance and fuel heat.
- Each degree lower saves roughly 1% to 3% of heating, depending on climate. A 7 to 10°F setback for 8 hours a day can save up to about 10% a year (DOE).
- Heating a cold house back up does not use more energy than holding it warm; the house loses less heat while it is cooler.
- Baseboard heaters: use a programmable line-voltage thermostat in each room and keep unused rooms cooler (but above 55°F to protect pipes).
4. Heat pump settings
A heat pump is the cheapest way to heat with electricity, as long as backup heat stays off.
- Avoid big setbacks. Raising the setpoint by 5°F or more in the morning often triggers resistance auxiliary heat. Use 2 to 4°F, or a smart thermostat with heat pump "smart recovery".
- Never leave it on "Emergency heat" (EM heat) unless the outdoor unit is broken. EM heat is resistance-only.
- Check the aux heat lockout. Many thermostats let you block aux heat above an outdoor temperature (often 30 to 40°F for modern cold-climate units). Ask your installer what your unit can handle.
- Leave it in Heat or Auto, not switching between modes repeatedly.
- Defrost is normal. Steam from the outdoor unit for a few minutes is the defrost cycle.
- Keep the outdoor unit clear of snow and ice and the filter clean.
5. Weatherization
| Fix | Cost | Typical heating saving |
|---|---|---|
| Weatherstrip doors, caulk window frames | $20 to $100 DIY | 5% to 10% in drafty homes |
| Foam gaskets behind outlet covers on exterior walls | $10 | Small, cheap |
| Window insulation film kits, heavy curtains at night | $10 to $30 per window | Noticeable in single-pane rooms |
| Seal attic air leaks (top plates, light fixtures, chases) | $300 to $1,000 | 10% to 15% with insulation |
| Attic insulation to R-49 (cold climates) | $1,500 to $3,500 | Combined with sealing above |
| Seal ducts in unheated spaces | $300 to $2,000 | 10% to 20% if leaky |
| Close the fireplace damper | Free | An open damper vents warm air all night |
Many utilities offer free or discounted energy audits with a blower-door test that finds the leaks. Low-income households may qualify for free weatherization: see help paying your electric bill. Try our home energy audit first.
6. Water heating
An electric water heater often uses 300 to 500 kWh a month in winter, because incoming water is colder.
- Set it to 120°F.
- Insulate the first 6 feet of hot and cold pipes.
- Low-flow showerheads (1.5 to 1.8 gpm) cut hot water use a quarter or more versus older 2.5 gpm heads.
- Wash clothes in cold water.
- Fix dripping hot taps.
- When it fails, a heat pump water heater uses roughly a third to half the electricity.
7. Heat the person, not the house
- Electric blanket: about $4.32/month (100 W, 8 h). A heated mattress pad uses similar power.
- Heated throw on the couch: about $2.59/month at 60 W, 8 h.
- Warm layers and slippers let most people drop the thermostat 2 to 4°F.
- Open south-facing curtains on sunny days; close all curtains at night.
Estimate your winter bill with the bill calculator. See also summer tips and how to cut your electric bill.
Frequently asked questions
Is it cheaper to use a space heater or central heat?
A space heater is cheaper only if you heat one or two rooms and turn the central thermostat down for the rest of the house. One 1,500 W heater on a thermostat costs about $39 a month at 17.99¢/kWh. Running several space heaters to heat a whole house costs about the same as electric resistance heat, and much more than a heat pump.
What temperature should I set my thermostat in winter?
68°F when home and awake, and 7 to 10°F lower while asleep or away. DOE estimates you save up to about 10% a year on heating with that setback for 8 hours a day. Heat pumps should use small setbacks (2 to 4°F) or a smart thermostat that avoids triggering auxiliary heat.
Why is my heat pump bill so high?
Usually auxiliary or emergency heat strips are running. They are resistance heaters and cost two to three times more per unit of heat than the heat pump. Common causes: large setbacks, a thermostat set to "Emergency heat", a low aux lockout temperature, dirty filters, or a system that needs service. Check whether "Aux" shows on the thermostat.
Do electric blankets use a lot of electricity?
No. A typical electric blanket uses 50 to 200 W, about $4.32 a month at 8 hours a night (100 W). Warming the bed lets you set the thermostat several degrees lower overnight.