Electric power transmitters are in Houston, Texas, on October 13, 2025. (Photo by Stephanie Tacy/NurPhoto via Getty Images)
NurPhoto via Getty Images
Electric bills are up across the country. Residential electricity prices have risen roughly 25% since 2020, outpacing both inflation and wage growth. There are several culprits, but an explosion of power-hungry AI data centers and increasing exports of liquefied natural gas are near the top of the list. But while you can’t control these rate hikes, you can control how much power you use — and when you use it.
Below are practical, real-world ways to bring those costs back down, drawn from my own experience in the energy industry and from utilities, regulators, and efficiency experts.
1. Focus on the Big Three: Heating, Cooling, and Lighting
In most homes, heating and cooling make up about half of total electricity use. That’s why the smartest place to start is with efficiency.
If you haven’t yet switched to LED lighting, you’re leaving easy money on the table. The Department of Energy estimates that a full home conversion can save the average household roughly $200 a year. LEDs also generate less heat, reducing your cooling load in the summer months.
Next, a smart thermostat can trim another 10–15% off your bill by learning your patterns and automatically adjusting the temperature when you’re asleep or away. Models from Nest, Ecobee, and Honeywell are now compatible with virtually every HVAC system, and many utilities offer rebates that cut the upfront cost in half.
Finally, don’t overlook weatherproofing. Sealing cracks, adding insulation, or even upgrading leaky ductwork can lower heating and cooling costs by 20% or more.
2. Make the Grid Work for You
Utilities are increasingly using “time-of-use” pricing. I use such a plan. You are charged more when demand peaks — typically late afternoon and early evening — and less during overnight or midday hours. By running your dishwasher, laundry, or EV charger outside of peak periods, you can sidestep those premium rates without changing your lifestyle.
For households with solar panels or home batteries, load shifting is even more powerful. Charging batteries when power is cheap (or when your panels are generating excess energy) and discharging them during expensive peak hours can yield substantial savings. Several states, including California, Arizona, and New York, now offer battery rebates through programs such as the Self-Generation Incentive Program (SGIP).
If rooftop solar isn’t an option, consider community solar. These shared projects allow renters and homeowners to buy or subscribe to a portion of a larger solar farm’s output, reducing monthly bills without the cost or maintenance of owning panels.
3. Eliminate “Phantom Loads”
Even when turned off, many electronics continue drawing small amounts of power — a phenomenon known as standby load or “phantom power.” The Natural Resources Defense Council estimates that standby consumption accounts for 5%–10% of residential electricity use nationwide.
The fix is simple: smart plugs and power strips that automatically cut power when devices aren’t in use. They cost under $30 and can pay for themselves within months.
4. Use Tech to Track and Trim
Awareness is key to winning this battle. Energy-monitoring devices such as Sense, Emporia, or Arcadia can track in real time where your power is going and alert you when consumption spikes. Many utilities also offer free online dashboards that show hourly usage and cost breakdowns.
It’s often eye-opening to see how much older appliances consume. Replacing a 15-year-old refrigerator or clothes dryer with an ENERGY STAR-rated model can cut usage by 20%–30%, sometimes saving more than $100 annually per appliance.
5. Tap Utility and Government Programs
If you’re on a tight budget, there are programs designed to help. The Weatherization Assistance Program and Low-Income Home Energy Assistance Program provide grants to improve insulation, seal ducts, and upgrade HVAC systems. Many utilities also offer demand-response programs, which pay customers small credits to voluntarily reduce power during grid emergencies.
These programs aren’t just for low-income households. Many utilities extend participation to all ratepayers willing to enroll smart thermostats or appliances in automated “load-shedding” events.
6. Think Long Term
Reducing electricity bills isn’t just about cutting back — it’s about investing in efficiency. Every dollar you put into efficiency today pays dividends for years to come.
The average homeowner who installs a combination of LED lighting, smart thermostat, insulation upgrades, and time-of-use adjustments can realistically cut annual electric costs by 25%–35%. For households with solar or battery storage, savings can exceed 50%.
The Bottom Line
Electricity prices will remain volatile as the U.S. modernizes its aging grid and transitions toward cleaner energy. But consumers aren’t powerless. The tools available today — from smart thermostats to community solar — make it possible to save money, reduce emissions, and strengthen the grid at the same time.
The best strategy isn’t one silver bullet, but a combination of small, steady improvements that compound over time. The result is a home that’s not only cheaper to power, but smarter, cleaner, and better prepared for the energy future ahead.