How Can I Reduce My Electricity Bill In Winter?

Table of Contents

Understand Your Electricity Usage

Understanding how electricity is used in your home is the first step to reducing your electricity bill. According to the U.S. Energy Information Administration, the average U.S. household consumes about 10,500 kilowatt-hours (kWh) of electricity per year [1]. This electricity usage is typically broken down as follows:

Heating and cooling: 43%

Appliances and lighting: 33%
Water heating: 18%
Other uses: 6%

During the winter months, heating usage tends to increase dramatically in colder climates, often making up 50-60% of electricity consumption. Therefore, focusing on heating system upgrades and insulation improvements will likely provide the biggest savings on your winter electricity bills.

Upgrade Your Heating System

One of the most effective ways to reduce your electricity bill in winter is to upgrade to a more energy efficient heating system. Older furnaces often operate at lower efficiency levels around 60-80%, whereas modern high efficiency models can achieve 90-98% efficiency (DOE Finalizes Energy Efficiency Standards for Residential…., 2022). This means they convert a greater percentage of fuel into usable heat, resulting in lower utility bills.

Upgrading from an 80% efficient furnace to a 95% efficient model can reduce your heating costs by 15-30% (Is Your Furnace as Efficient as You Think?, 2022). The upfront investment pays for itself over time through the energy savings. When shopping for a new furnace, look at the AFUE (annual fuel utilization efficiency) rating – the higher this percentage, the better.

Installing a programmable thermostat is another way to boost efficiency. You can set the temperature to lower automatically at night or when away from home. Programmable thermostats allow more precise control over the heating system so it’s not constantly maintaining peak temperature when not needed.

Improve Insulation

One of the most effective ways to reduce your heating bill is to improve your home’s insulation. This not only keeps warm air in during winter, but also keeps your home cooler in summer. Focus on adding insulation in areas that leak the most energy – mainly the attic and areas around windows and doors.

According to the U.S. Department of Energy, adding insulation to your attic can reduce heating and cooling costs by 10-50% (source). Attics are often the main source of heat loss in a home, so adding insulation here provides the biggest bang for your buck. The recommended level for most attics is R-38 or about 12-15 inches of insulation. Make sure to seal any air leaks between the attic and living space as well.

Sealing gaps and cracks around windows, doors, pipes and wiring can further reduce drafts and energy loss. Weather stripping and caulk are inexpensive yet effective solutions. Insulating drafty windows with thick curtains or plastic film is also beneficial during cold winter months.

Utilize Passive Solar Heating

Passive solar heating is a way to harness the sun’s energy to warm your home naturally and reduce your electricity bill. This involves maximizing the sunlight that enters your home during the day through proper window positioning, and utilizing materials that absorb and store heat effectively (source 1, source 2).

The key steps for passive solar heating are:

Open south-facing window blinds or curtains during the day to allow direct sunlight to enter and heat up the interior.
Close the window coverings at night to reduce heat loss.
Use thermal mass materials like tile or concrete floors to absorb and slowly release the sun’s warmth.

Passive solar heating is a smart way to reduce electricity usage for heating during sunlit hours. Simply opening blinds and harnessing the sun’s free energy during the day can make a big difference in your next electricity bill.

Lower the Thermostat

Turning down your thermostat is one of the quickest and most effective ways to reduce your electricity bill in the winter. According to the U.S. Department of Energy, you can save as much as 10% a year on heating and cooling costs simply by turning your thermostat back 7°–10°F for 8 hours or more per day (source).

When setting your thermostat, aim to keep it at 68°F while you are home and awake. Then, turn it down to around 60°F overnight and anytime you are away from home for more than a couple hours. This setback of 8-10°F for a good portion of the day can significantly reduce the amount of energy needed for heating.

Studies show setbacks of just a few degrees can save hundreds of dollars per year. According to research from the Canadian Centre for Housing Technology, a 3°F setback saves around 10% on energy costs, while a 10°F setback saves 30%. The larger the setback, the more you can save (source).

Using a programmable thermostat makes it easy to set customized heating schedules to lower the temperature when needed. If you don’t have a programmable thermostat, you can still lower the temperature manually when away or sleeping.

Use Area Heaters

Using space heaters to heat only occupied rooms can help reduce your electricity bill in the winter. Space heaters are an energy-efficient way to provide targeted heating by warming the people in a room directly, rather than heating the entire house. According to CNET, space heaters cost about 20 cents per hour to operate, which is much cheaper than central heating for most homes.

Focus on heating the rooms you spend the most time in, like the living room or home office. Turn off space heaters when leaving a room to avoid wasting energy. Opt for models with timers or thermostats to better control the temperature. Ensure space heaters have safety features like auto shut-off in case of tipping. With strategic use in frequented rooms, space heaters can provide comfort and savings this winter.

Ensure Proper Maintenance

One of the most effective ways to conserve energy and keep your electricity bill down in winter is to properly maintain your furnace and HVAC system. Regular maintenance ensures your system runs at peak efficiency so it doesn’t have to work harder than necessary to heat your home. There are two key maintenance tasks:

Replace filters regularly – Furnace filters should be replaced every 1-3 months depending on usage. A dirty filter forces your furnace to work harder to push air through the ducts, wasting energy. According to the HVAC company Lycoming Heating, dirty filters are one of the leading causes of reduced furnace efficiency. Replace your filter often, using high quality pleated filters for optimal performance.[1]

Get an annual tune-up – Have an HVAC technician do a thorough inspection and maintenance of your furnace each year. They will check components for wear and tear, lubricate moving parts, and ensure everything is calibrated for peak efficiency. According to iHeartAmana, postponing maintenance is a primary reason furnace efficiency declines over time.[2] An annual tune-up will keep your system running smoothly so it doesn’t have to use more energy to compensate for issues.

Switch to LED Lighting

One of the easiest ways to reduce your electricity usage in winter is to switch your traditional incandescent light bulbs to LED bulbs. LED bulbs use around 75% less energy and last 25 times longer than incandescent bulbs (Lighting Choices to Save You Money). This translates into major cost savings over time.

For example, a 60W incandescent bulb running for 3 hours per day costs around $6.60 to operate for 1 year. An equivalent 8W LED bulb would only cost around $1.32 for the same usage, saving over $5 per year per bulb switched (LED vs. Incandescent Lighting: A Cost Comparison). While LED bulbs have a higher upfront cost, they pay for themselves within a year and continue saving money for years to come.

Replacing all the bulbs you use frequently with LEDs can reduce your lighting electricity usage by 75% or more. Focus first on the bulbs that get used most often, like kitchen ceiling lights. Over time, switching all bulbs in your home to LEDs can potentially slice your lighting electricity costs by over 80%. With lighting accounting for around 15% of the average home’s electricity, LED bulbs provide major savings.

Unplug Devices

One of the easiest ways to reduce your electricity usage in winter is to unplug devices when they are not in use. Many electronics continue drawing small amounts of power even when switched off or in standby mode. This is known as “idle load” or “phantom load.”

According to studies by the Natural Resources Defense Council (NRDC), idle load accounts for around 23% of household electricity usage in the US (NRDC). Devices ranging from televisions, gaming consoles, desktop computers and printers are common culprits. By physically unplugging devices when not in use, you stop them from drawing this phantom load.

Make it easy on yourself by plugging devices into power strips. That way, you only have to switch off one power strip rather than unplugging many devices individually. Prioritize unplugging electronics that draw higher idle loads, like desktop computers and printers. But remember that even smaller devices like phone chargers use energy when left plugged in.

With simple habit changes to unplug devices, you can reduce your electricity usage and bills this winter without impacting convenience or comfort.

Utilize Rebates and Tax Credits

One of the best ways to offset the cost of energy efficiency upgrades is to take advantage of rebates and tax incentives offered by the government and utility companies. The ENERGY STAR Rebate Finder allows you to enter your zip code to find available rebates in your area for purchasing ENERGY STAR certified products. Many utility companies offer rebates for installing energy efficient appliances, lighting, insulation, heating and cooling systems.

At the federal level, homeowners can receive tax credits for energy efficiency improvements made to an existing home. According to the Department of Energy, upgrades like adding insulation, energy efficient doors and windows, heating and cooling equipment, water heaters, solar panels, and more can qualify for tax credits. For 2022, the maximum lifetime credit amount is $500, but this will increase to $1,200 in 2023. When claiming these credits, be sure to follow the IRS guidelines and maintain proper documentation.

Taking the time to research and utilize these incentives can lead to substantial cost savings on energy efficiency projects and upgrades.