If you’ve noticed a sudden spike in your electricity bill, you’re not alone. Many households are dealing with rising costs that can be frustrating and sometimes confusing. Ahead, Shipley Energy suggests what might be driving up your electricity bill and shares ways to lower it.
The answer to why your bill is so high is likely multifaceted since many issues can contribute to a hefty electric bill. Read on to learn more about energy usage and how to save, or design a low-rate energy plan now.
We’re here to help you uncover issues and provide you with some tips for lowering your electric bill so you can save money and move toward a more energy-efficient future. You can use these quick links at any time to jump to different sections of the article. Let’s get started.
Is my electric bill too high?
The amount you should expect to spend on electricity depends on your home’s type and size, location, and other significant factors. While no particular dollar amount signifies your bill is too high, a point of reference can be helpful. It may be helpful to know that, in 2024, the average monthly electric bill in the United States was $140.56. If you consider your household electricity use to be pretty average and your bill is significantly higher than this total, it may be too high.
If you’re worried about your electric bill being too high, chances are you’ve noticed the cost increase over time. There are several reasons why your bill may have increased or why it remains consistently too high.
10 reasons your electric bill is so high
What consumes the most electricity in your home?
If you’re trying to lower your electricity bill, addressing the biggest electricity consumers will have the most significant impact on your bill. Heating and cooling systems, water heaters, and large appliances such as washers, dryers, and refrigerators are among the largest electricity consumers in most homes. Lighting, especially with traditional bulbs, also adds to your bill, as do entertainment systems and kitchen appliances, such as ovens and dishwashers. Read on to learn more about common pitfalls affecting your energy costs.
Did you know that many of your appliances and electronics that plug in draw energy, even when turned off? This energy is often referred to as a phantom load or standby power. Most electronics and appliances today are designed to be in a standby mode rather than truly off when not in use. A typical American household has 40 devices continuously drawing power, whether on or off, adding up to nearly 10% of the family’s total electricity use.
2. Using old, inefficient appliances
Today’s appliances are designed to be more energy-efficient than their older counterparts. This means if you have old appliances in your house, they could use excessive electricity. This includes dishwashers, ovens, refrigerators, freezers, clothes washers, dryers, water heaters, and many other appliances throughout your home. Two of the biggest culprits are refrigerators and clothes dryers. If your appliances are relatively old, they are likely not as efficient as they could be.
3. Lighting your home with traditional incandescent bulbs
You’re likely wasting energy if you’re using conventional incandescent bulbs in your light fixtures. Energy-efficient lighting options such as light-emitting diodes (LEDs), compact fluorescent lamps (CFLs), and even halogen incandescent lamps use significantly less energy. So, if you’re wondering why your electricity bill is higher than your neighbor’s, it could be in part because their LED bulbs use 80% less energy than your incandescent bulbs do.
4. Leaving lights or appliances on
If you’re not in the habit of turning off the lights, TV, and other appliances before leaving the house, you could be wasting energy while you’re away. If you have children, it’s essential to educate them that leaving lights or electronics on unnecessarily wastes energy and money. Even while you’re at home, if it’s during daylight hours, you may not need lights on.
5. Putting significant demand on your HVAC system
For the average single-family household, heating accounts for up to 45% of annual utility costs, and cooling makes up 9%. If your HVAC system runs on electricity, then you’ll see higher totals on your electric bill, especially if you place a high demand on your HVAC system. This is one of the primary reasons your electric bill fluctuates seasonally. During harsh winter or scorching summer months, you can expect to use a lot more electricity for heating or cooling than you’ll use during milder times of the year.
6. Using a lot of hot water
Water heating typically accounts for approximately 18% of a home’s energy consumption. Many everyday household chores and activities such as washing dishes, doing laundry, and taking showers, can require a significant amount of hot water. As you use hot water, the water heater must use energy to heat more water. If your water heater uses electricity, using a lot of hot water can result in a high electric bill.
7. Staying indoors more
The amount of energy you use depends on how often you’re inside your home. The pandemic has caused energy customers to stay home more than ever. Many employees and students have been working remotely, and lots of events have been canceled. Those staying home, especially during the coldest and hottest parts of the year, are bound to have higher utility costs.
8. Greater use of devices
Those working or studying at home are not just lounging around—they’re using computers and other devices throughout the day. If the pandemic has sent you home, you might be relying on a desktop or laptop for upward of eight hours per day. Heavier use of devices is one reason your electricity bill may have shot up.
9. Using electricity during peak hours
Some utility companies instate what is called a time-of-use policy, where using electricity during certain hours will cost you more than if you used the same amount of electricity at a different time of day. The hours when electricity costs more are referred to as peak hours, and there tends to be a greater demand for electricity during these times. If you use electricity during peak hours, you can expect a higher bill.
You might be using electricity during peak hours more often, thanks to the pandemic. With COVID-19 restrictions, you were likely to be at home during those hours. Please note that peak hours vary by supplier, time of year, and other factors. For instance, winter peak hours tend to be in the morning, while summer peak hours tend to be in the afternoon or evening.
10. Increased electricity rate
Electricity rates, measured in the cost per kilowatt-hour (kWh), vary from location to location and supplier to supplier. Rates can also fluctuate seasonally. In the summer, for instance, you may see a higher total on your bill even if you used the same amount of electricity as you did in the spring. If you consistently notice high rates, you may want to consider switching suppliers. Many people obtain their electricity supply from their utility company, but in deregulated states, you have the option to compare rates and switch suppliers.
12 ways to lower your electric bill
Electricity bills can sneak up on you, especially when the seasons change or when household needs shift. However, with some minor adjustments, you can make a significant impact on those costs.
Here are 12 ways to bring down your electricity bill and keep your home running efficiently:
1. Conduct an energy audit
An energy audit is one of the best ways to get some insight into how to save money on your electric bill. The auditor will learn about your home’s appliances and electricity use and then make recommendations for increasing your efficiency. You can also conduct a DIY audit, but a professional one is the best option.
2. Unplug electronics and appliances
Unplug electronics and appliances when you’re not using them, rather than just turning them off. Plugging electronics into a power strip makes it easier to cut off power to all the electronics at once and then turn them back on when you’re ready. Eliminating the phantom load of electronics use could save you as much as 10% on your next electric bill.
3. Upgrade old appliances
Another way to save is by replacing old, energy-draining appliances with newer, more efficient models. Newer appliances typically offer superior energy efficiency, which can lower your energy costs substantially over time.
4. Install dimmer switches
An excellent solution for reducing light usage is to use dimmer switches. With a dimmer switch, you can adjust a light fixture to provide only as much light as you need. As you lower the amount of light, you also reduce the amount of electricity going to the bulb, which can help cut back on your overall lighting costs.
5. Switch to energy-efficient light bulbs
According to the U.S. Department of Energy, you could save $75 a year just by replacing five light bulbs in your house that you use the most with ENERGY STAR bulbs. Especially if you choose CFL or LED bulbs, you can also enjoy significantly longer periods between bulb replacements, as they last much longer than traditional incandescent bulbs.
6. Adjust the thermostat
When you’re away from home, adjust your thermostat to prevent your HVAC system from working harder than necessary. Adjusting your thermostat by 7 or 8 degrees to match the outdoor temperature for eight hours a day could save 10% on your heating and cooling costs. A programmable thermostat can help you do this.
7. Install ceiling fans
If you find yourself spending a lot on cooling your home during hot weather, try installing ceiling fans. With a ceiling fan going, you can raise your thermostat setting and enjoy the same comfort level as you did with a lower setting and no fan.
8. Change your HVAC filter regularly
An HVAC system has to work harder and, therefore, use more energy when the filter is clogged or dirty. Make sure to check your filter regularly and change it as soon as it becomes dirty. Typically, you should change filters at least every three months.
9. Air dry dishes and laundry
Since a drying feature on a dishwasher and a clothes dryer can use a lot of energy, you can save money by avoiding them. For dishes, allow them to air dry or use a dishcloth to dry them by hand as you put them away. For laundry, use a clothesline outside or a drying rack inside to let clothes air dry.
10. Lower your water heater setting
Many water heaters are set to 140°F by default. However, for most households, 120 F is sufficient to handle hot water needs, meaning you’re wasting energy to maintain that high temperature. Simply lowering the setting to 120°F from 140°F can automatically save you between $36 and $61 in standby heat losses and over $400 in demand losses per year.
11. Use a low-flow shower head
If you’re using a lot of hot water in the shower, placing a significant demand on your water heater, one solution is to take shorter showers. That’s not the only solution, though. You can shower for the same length of time and still use a lot less water by installing a low-flow showerhead with the WaterSense label.
12. Plan for off-peak hours
If you’re dealing with a time-of-use policy from your utility company, you should do your best to avoid using electricity during peak hours. Plan to run your dishwasher or wash and dry clothes, for instance, during off-peak hours so you won’t be charged as much.
Shop for a new electricity supplier
In many cases, you can decrease electricity costs by switching suppliers. A new supplier may be able to purchase electricity at a lower rate and pass on those cost benefits to you. Switching may also allow you to choose more favorable contract terms—for example, if you’ve seen your rates increase in a variable-rate contract, you might benefit from a fixed-rate contract. In a fixed-rate contract, your rate will stay the same for the duration of your agreement, no matter what your supplier has to pay.
Of course, your supplier might not be the only reason your electricity bills are high. How and when you use electricity can also have an impact. It’s a good idea to look at the whole picture and consider every possible factor to generate the most savings.
This story was produced by Shipley Energy and reviewed and distributed by Stacker.
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