The average American household spends roughly $2,060 per year on their home utility bills. Your utility bill typically fluctuates depending on the time of the year, your total energy consumption, and the number of people in your household. Our money spending tracker [ew2] allows you two view up to two years of transactions, making it a breeze to pinpoint your utility bills. You can also view your spending summary [ew3] and see how much your monthly spend goes toward housing and utilities. If you find that you’re spending more than ten percent of your income on utilities, we recommend the below tips and tricks to lower utility bills:
Take Shorter Showers
Many of us are guilty of dozing off while enjoying a warm and relaxing shower. According to the Center for Disease Control and Prevention (CDC), the average American showers for eight minutes. Cutting your shower time by a couple of minutes could save you an extra $100 – $200 annually. You can see even more savings if you get your entire family to follow suit. Every minute counts, and the shorter you shower, the more money you can allocate to savings!
Check for Leaky Faucets
Did you know that a single leaky faucet can use up to 20 gallons of water daily? Twenty gallons per day equates to 7,300 gallons per year! Although water costs vary by location, it’s safe to assume that the average American pays around $1.50 for every 1,000 gallons. Therefore, if you stop a leak, you could save around $11 per year. And even though $11 doesn’t sound like a lot, it can add up if you have multiple leaking faucets in your house. Not only that but reducing unnecessary water consumption is better for the environment (and your wallet).
Use LED lightbulbs
Incandescent lightbulbs used to be the status quo in American households, but many people are now ditching incandescent bulbs for LED lightbulbs. The average incandescent lightbulb lasts around 2,000 hours, while an LED lightbulb can last up to 50,000 hours. A single incandescent lightbulb costs around $9 annually if you use it three hours daily. On the other hand, an LED lightbulb costs around $3 annually if you use it for three hours each day. Thus, you can save about $6 per year for each LED lightbulb you install (the exact amount varies depending on how often you keep the lights on).
Wash Your Clothes in Cold Water
Washing your clothes with cold water uses significantly less energy than washing with warm water. In fact, 90 percent of your washing machine’s energy usage goes toward heating the water during the wash cycle. You can save over $70 per year if you use cold water over hot, and believe it or not, your clothes will come out just as clean! Moreover, cold water can keep your clothes from fading and shrinking, resulting in even more long-term savings.
Use Energy-Efficient Appliances
When you’re in the market for new appliances, you should specifically look for ENERGY STAR labels. Appliances with an ENERGY STAR certification must adhere to strict guidelines set forth by the United States Environmental Protection Agency. Best of all, you can often get a rebate or federal tax credits that help offset the initial cost of the appliance. ENERGY STAR maintains a comprehensive list of all appliances that have this certification. Next time you’re remodeling your home or purchasing a new appliance, be on the lookout for ENERGY STAR.
Weatherize Your Home
Weatherizing your home enables you to cut down on your energy costs and improve your home’s overall livability. In short, weatherizing is when you seal your home from the elements. The weatherization process includes installing door sweeps, sealing window cracks, insulating attic doors, and covering your water heater. Weatherizing your home on your own is highly affordable, but hiring a professional to do it for you can cost a couple of thousand dollars. According to the EPA, you can lower utility bills by 11 percent when you weatherize your home.
Wash and Dry Your Clothes at Night
Many utility companies charge lower electricity rates during the night. For instance, Alliant Energy customers in Wisconsin pay 18 cents per kWh between 11 am – 7 pm during June, July, and August. However, they only pay seven cents per kWh between 11 pm – 6 am and 14 cents per hour between 7 pm – 11 pm. Energy is cheaper at night simply due to supply and demand. During the day, utility companies have to use a large portion of their resources, often involving costlier energy sources such as solar and wind. However, demand is relatively low during the night, and utility providers rely on cheaper energy sources like power plants.
The U.S. Department of Energy shows that the average consumer uses 893 kWh per month. Therefore, someone who uses electricity primarily during the night could save up to $100 per month. While most households can’t avoid using electricity during the day, they could save between $20 – $30 monthly by running their washing machine and dryer during the night.
Regularly Change Your HVAC Filters
You should change your HVAC filter every three months to maximize performance. Your HVAC system makes up approximately half of your overall energy consumption. Thus, an HVAC system that’s not functioning adequately could lead to a spike in your utility bills. The U.S. Department of Energy suggests that regularly changing your HVAC filters could lower utility bills by up to 15 percent.
Pay for an Energy Audit
You can hire a licensed company to conduct an energy audit at your home, which can lead to reduced utility bills. Energy assessors look at every room of your house and use advanced equipment to calculate how much energy you’re using in each room. At the end of an audit, many assessors will provide a list of recommendations that could include replacing appliances, sealing windows, and installing better ventilation.
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