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How to cut your electric bill

Every fix ranked by yearly savings for a home where it applies, recalculated at your rate. Start with the free ones, then the ones with the fastest payback.

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First, check your price. If your state is deregulated, a cheaper supplier can cut 10–30% with zero effort. Everywhere else, a time-of-use plan can help if you have an EV or flexible loads.
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  1. Replace electric resistance heat with a heat pump

    $1,259/yr

    Homes with baseboard, electric furnace or space-heater heat. Saves about 7,000 kWh/yr (about 10,900 kWh/yr resistance heat vs. about 3,900 with a COP-2.8 heat pump). Cost: $4,000–$15,000.

    Heating cost comparison

  2. Install a heat pump water heater

    $576/yr

    Homes with an electric tank water heater. Saves about 3,200 kWh/yr (4,500 kWh/yr standard tank vs. about 1,300 kWh/yr heat pump unit (ENERGY STAR)). Cost: $1,800–$3,500 installed.

    Heat pump water heater costs · Shop Heat pump water heaters

  3. Switch to a variable-speed pool pump

    $252/yr

    Pool owners. Saves about 1,400 kWh/yr (single-speed about 2,000 kWh/yr vs. variable-speed about 640 at equal turnover). Cost: $800–$1,500.

    Pool pump costs · Shop Variable-speed pool pumps

  4. Seal air leaks and add attic insulation

    $216/yr

    Homes with electric heat or central AC. Saves about 1,200 kWh/yr (DOE estimates about 15% heating and cooling savings, roughly 1,200 kWh in an all-electric home). Cost: $300–$2,500 (DIY to pro).

    Winter bill guide · Shop Weatherstripping & door sweeps

  5. Use LED bulbs everywhere

    $198/yr

    Homes with any incandescent or halogen bulbs left. Saves about 1,100 kWh/yr (20 bulbs × 51 W saved × 3 hrs/day). Cost: $2–$3 per bulb.

    LED savings calculator · Shop LED bulb multipacks

  6. Unplug or recycle the second fridge

    $144/yr

    Homes with an old garage or basement fridge. Saves about 800 kWh/yr (older garage fridges use 700–1,000 kWh/yr). Cost: Free (many utilities pay you $50+).

    Garage fridge costs

  7. Smart thermostat with setbacks

    $126/yr

    Homes with central heating/cooling. Saves about 700 kWh/yr (ENERGY STAR estimates about 8% of HVAC energy). Cost: $100–$250 (often rebated).

    Heat pump costs · Shop ENERGY STAR smart thermostats

  8. Replace a 15+ year old refrigerator

    $90/yr

    Homes with a fridge from before ~2010. Saves about 500 kWh/yr (1,000 kWh/yr old unit vs. about 500 kWh/yr new ENERGY STAR model). Cost: $900–$2,000.

    Most efficient fridges

  9. Raise the AC setpoint 4°F and run ceiling fans

    $81/yr

    Homes with central AC. Saves about 450 kWh/yr (about 4% of cooling energy per °F on roughly 2,900 kWh/yr, minus fan use). Cost: Free.

    Summer bill guide · Shop ENERGY STAR ceiling fans

  10. Install low-flow showerheads

    $72/yr

    Homes with electric water heating. Saves about 400 kWh/yr (cutting 2.5 to 1.5 gpm saves about 10% of water-heating energy). Cost: $15–$40.

    Shop Low-flow showerheads

  11. Air-dry laundry or switch to a heat pump dryer

    $72/yr

    Homes with an electric dryer. Saves about 400 kWh/yr (about 800 kWh/yr conventional dryer; heat pump dryers use about half). Cost: Free or $1,100–$1,600.

    Heat pump dryer costs

  12. Cut standby power with smart power strips

    $54/yr

    Homes with TV, console and computer setups. Saves about 300 kWh/yr (eliminating about 35 W of always-on load). Cost: $25–$40 per strip.

    Standby power calculator · Shop Advanced smart power strips

  13. Wash in cold water

    $45/yr

    Homes with electric water heating. Saves about 250 kWh/yr (about 90% of a washer’s energy goes to heating water). Cost: Free.

    Washer costs

Savings at 17.99¢/kWh by default (U.S. average, 2025-08 to 2026-07). Enter your ZIP to recalculate. Product links are Amazon affiliate links, and we may earn a commission. Disclosure.

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Frequently asked questions

What is the fastest way to lower my electric bill?

Look at the free and cheap wins first: thermostat setpoints, cold-water washing, unplugging a second fridge, LEDs and standby power. Then check whether you can switch to a cheaper rate plan or, in deregulated states, a cheaper supplier. Big savings in all-electric homes come from heat pumps for space and water heating.

Does unplugging appliances save money?

Some. Most small chargers draw well under 1 W. TV boxes, consoles in rest mode, desktop PCs, audio gear and old electronics can draw 5–25 W around the clock, which can add up to $30–$80 a year in a typical home. The standby calculator shows yours.

Can I get paid to save electricity?

Often, yes. Many utilities offer rebates on heat pumps, heat pump water heaters, smart thermostats and insulation. They also pay bounties for recycling old fridges and pay for demand-response events, such as letting them nudge your thermostat on peak days. Check your utility’s page here for the programs it reports.