{"id":83396,"date":"2023-05-10T11:52:03","date_gmt":"2023-05-10T18:52:03","guid":{"rendered":"https:\/\/www.redfin.com\/blog\/?p=83396"},"modified":"2026-02-18T09:38:24","modified_gmt":"2026-02-18T17:38:24","slug":"how-to-save-money-on-utilities","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/blog\/how-to-save-money-on-utilities\/","title":{"rendered":"How to Save Money on Utilities: A Categorized Guide for Owners and Renters"},"content":{"rendered":"\r\n

1. How to save money on electricity?<\/a>
2. How to reduce your natural gas consumption?<\/a>
3. How to lower your water bill: 9 helpful tips.<\/a>
4. More ways to save money on utilities?<\/a><\/p>\r\n\r\n\r\n\r\n

Utility bills are a necessary expense for every household, but they can add up quickly and put a strain on your budget. Whether you own or rent your home, it\u2019s important to find ways to save money on utilities without sacrificing significant comfort or convenience. This Redfin guide is designed to help you categoriz e your utility expenses and identify areas where you can reduce your costs. By adopting energy-efficient habits and making simple investments, you can lower your bills, <\/span>reduce your carbon footprint<\/span><\/a>, and keep more money in your pocket.<\/span><\/p>\r\n\r\n\r\n\r\n

So whether you\u2019re a <\/span>homeowner in Duluth, MN<\/span><\/a>, and want to reduce your gas bill, or are looking to reduce your electric bill in an <\/span>apartment in Wilmington, NC<\/span><\/a>, read on to learn everything you need to know.<\/span><\/p>\r\n\r\n\r\n\r\n

The average cost of utilities\u00a0<\/span><\/h2>\r\n\r\n\r\n\r\n

On average, U.S. homeowners and renters spend an <\/span>average of $5,640<\/span>\u00a0per year on utilities, which is a substantial expense for most people. Additionally, utility costs, such as electricity, natural gas, water, phone, and internet, can vary significantly based on factors like location, household size, and daily use.<\/span><\/p>\r\n\r\n\r\n\r\n

Producing utilities such as natural gas and electricity also contributes significantly to climate change. Given the rising cost of living and the impact utilities have on the environment, finding ways to save money and reduce your overall use is more important than ever.<\/span><\/p>\r\n\r\n\r\n\r\n

\"smart<\/figure>\r\n\r\n\r\n\r\n

 <\/p>\r\n\r\n\r\n\r\n

Electricity<\/span><\/h2>\r\n\r\n\r\n\r\n

Average electric bill: <\/span><\/i>$121.01<\/span><\/i><\/a>, or $13.72 per kWh<\/span><\/i><\/p>\r\n\r\n\r\n\r\n

Electricity is the largest utility cost for most people in the US, <\/span>accounting for 23%<\/span><\/a> or more of their monthly expenses. It\u2019s also an area where people can make the largest impact on their bills.\u00a0<\/span><\/p>\r\n\r\n\r\n\r\n

The cost to supply electricity <\/span>changes every minute<\/span><\/a> and varies depending on demand, availability, and fuel costs. Additionally, because of how the US generates electricity and how consumers use it, prices are generally highest during the summer and winter. Regardless, most people pay a seasonally metered rate based on kilowatt hours (kWh).\u00a0<\/span><\/p>\r\n\r\n\r\n\r\n

Expert tip<\/em>:<\/b> \u00a0\u201cOne of the best steps you can take in improving your home\u2019s energy efficiency is to have an expert take a look and make recommendations on potential work. Some electric utilities offer their customers free energy audits, or you can arrange to have an audit carried out by a local building performance contractor. Additionally, customers are often not aware that their utility offers energy efficiency services and appliance discounts that can help with high energy bills, often in the form of a credit on their monthly bill. Visit your utility\u2019s website\/portal to explore which energy efficiency options are available to you.\u201d \u2013 Daniel Pate, NCSEA Director of Data and Research with <\/span><\/i>NC Sustainable Energy Association<\/span><\/i><\/a><\/p>\r\n\r\n\r\n\r\n

Here are a few tips to help save money on electricity.<\/span><\/p>\r\n\r\n\r\n\r\n

1. Turn off lights and appliances<\/span><\/h3>\r\n\r\n\r\n\r\n

Outlets continue supplying power to devices even if they\u2019re turned off. To prevent this, switch off lights, appliances, and electronics when you aren\u2019t using them. Also, unplug chargers and power adapters when they\u2019re not charging devices.<\/span><\/p>\r\n\r\n\r\n\r\n

2. Use energy-efficient lighting<\/span><\/h3>\r\n\r\n\r\n\r\n

Replace incandescent bulbs with energy-saving alternatives like compact fluorescent lamps (CFLs) or light-emitting diode (LED) bulbs, which consume less energy and last longer.<\/span><\/p>\r\n\r\n\r\n\r\n

Kelly Dougherty, President of <\/span>FirstService Energy<\/span><\/a>, adds more. \u201cTransitioning to LED bulbs is a cost-effective way to reduce energy consumption,\u201d she says. \u201cLED lights use a remarkable 90% less energy than traditional incandescent bulbs and boast a lifespan up to 25 times longer.\u201d<\/span><\/p>\r\n\r\n\r\n\r\n

3. Install a programmable thermostat.<\/span><\/h3>\r\n\r\n\r\n\r\n

Smart thermostats<\/span><\/a> allow you to set temperature schedules for different times of the day, reducing energy consumption when you\u2019re not at home or during sleep.<\/span><\/p>\r\n\r\n\r\n\r\n

\u201cWhile the initial investment is high, a smart thermostat pays off in the long run,\u201d Dougherty continues. \u201cThese devices intelligently adjust temperatures throughout the day to maintain your desired comfort level. They\u2019re also Wi-Fi enabled, allowing for remote control via smart devices. On average, a smart thermostat can reduce energy bills by up to 20%.\u201d<\/span><\/p>\r\n\r\n\r\n\r\n

4. Use energy-efficient appliances<\/span><\/h3>\r\n\r\n\r\n\r\n

When buying new appliances, look for the <\/span>ENERGY STAR<\/span><\/a> label, which indicates they meet strict energy efficiency guidelines set by the US Environmental Protection Agency.<\/span><\/p>\r\n\r\n\r\n\r\n

\"how-to-save-money-on-utilities-3\"<\/figure>\r\n\r\n\r\n\r\n

 <\/p>\r\n\r\n\r\n\r\n

5. Use smart power strips<\/span><\/h3>\r\n\r\n\r\n\r\n

These devices automatically cut power to electronics in standby mode, <\/span>eliminating energy waste<\/span><\/a> from \u201cvampire\u201d or \u201cphantom\u201d loads.\u00a0<\/span><\/p>\r\n\r\n\r\n\r\n

Francis Braam, Broker\/Owner at <\/span>Royal LePage Kelowna<\/span><\/a>, adds more. \u201cOne of the biggest drains on electricity bills are vampire electronics,\u201d he says. \u201cMake sure to unplug appliances and electronics when you aren\u2019t using them to avoid watching your money get sucked away.\u201d<\/span><\/p>\r\n\r\n\r\n\r\n

6. Adjust your water heater temperature<\/span><\/h3>\r\n\r\n\r\n\r\n

Lower the temperature on your water heater to around 120\u00b0F (49\u00b0C) to save energy and reduce the risk of scalding. You can also use <\/span>solar thermal<\/span><\/a> water heaters for extra efficiency.<\/span><\/p>\r\n\r\n\r\n\r\n

Another option is to install a tankless water heater. \u201cThey are a big investment upfront, but the advantages they provide can help your overall budget in the long term,\u201d says the team at <\/span>Morrison Electric<\/span><\/a>. \u201cWater heaters can be the second-largest energy drain, so modernizing can save you quite a bit.\u201d <\/span><\/p>\r\n\r\n\r\n\r\n

7. Hang clothes to dry<\/span><\/h3>\r\n\r\n\r\n\r\n

Hill + House<\/span><\/a> shares one of their favorite ways to reduce energy consumption at home is in the laundry room. <\/span>\u201cWe regularly wash clothes in cold water and air dry our clothing and linens to save on gas and electricity \u2014 and we love the fresh, sun-kissed scent that comes with it.\u201d<\/span><\/i><\/p>\r\n\r\n\r\n\r\n

However, if using a dryer is necessary, Anita Spiller, Vice President of Environment, Social & Governance at <\/span>Tru Earth<\/span><\/a>, offers this expert tip for greater efficiency: <\/span>“To lower your energy bill, consider using wool dryer balls in your laundry. These chemical-free, reusable balls help reduce drying time by up to 25% by improving air circulation and separating clothes. This allows the dryer to work more efficiently, saving energy while also reducing static cling and softening clothes. With wool dryer balls, you can enjoy quicker, more planet-friendly drying while cutting energy costs.”<\/span><\/i><\/p>\r\n\r\n\r\n\r\n

Expert tip:<\/strong><\/span><\/i> “One often-overlooked way to lower energy bills and improve home safety is having your dryer vents professionally cleaned. A clogged vent forces your dryer to work harder and longer, spiking electricity use and utility costs. Even more critically, built-up lint is a major fire hazard \u2014 thousands of house fires each year start this way. We recommend scheduling a professional dryer vent cleaning at least once a year to keep your home efficient, safe, and running smoothly.” \u2013Taylor Burns, owner-operator of <\/span><\/i>MN Ducts Pros<\/span><\/i><\/a><\/p>\r\n\r\n\r\n\r\n

8. Opt for natural lighting<\/span><\/h3>\r\n\r\n\r\n\r\n

Open curtains and blinds during the day to <\/span>take advantage of natural sunlight<\/span><\/a> and reduce the need for artificial lighting.\u00a0<\/span><\/p>\r\n\r\n\r\n\r\n

Expert tip<\/strong>: <\/span><\/i>“Create custom microclimates by planting strategic vegetation that blocks winter winds and provides summer shade, working with nature rather than against it. Install thermal curtains with reflective linings that trap heat in winter and deflect it in summer, performing far better than standard window treatments. Consider energy-harvesting floor tiles in hallways and kitchens to convert everyday footsteps into usable electricity. For maximum impact, think of your home as a complete ecosystem where green roofs or living walls provide natural insulation whilst cooling the surrounding air, reducing the need for mechanical heating and cooling.” \u2013 Stuart Beaty, compliance director of <\/span><\/i>Adleo Relo<\/span><\/i><\/a><\/p>\r\n\r\n\r\n\r\n

\"how-to-save-money-on-utilities-2\"<\/figure>\r\n\r\n\r\n\r\n

 <\/p>\r\n\r\n\r\n\r\n

9. Upgrade older windows<\/span><\/h3>\r\n\r\n\r\n\r\n

To save money on utilities, don\u2019t forget to check your old windows. Sealing drafts and using efficient appliances also help. Steve Urich from the National Fenestration Rating Council advises on how to save money on utilities:<\/span> “Upgrading older, aging windows can deliver significant benefits for homeowners. Not only can replacing windows help homeowners recoup about 73% of their investment when selling their property, but it also offers notable energy savings in the meantime.\u00a0<\/span><\/i><\/p>\r\n\r\n\r\n\r\n

According to the U.S. Department of Energy, <\/span><\/i>ENERGY STAR-certified windows<\/span><\/i><\/a> can reduce energy bills by an average of 12% annually. Choosing the right windows for your home, however, depends largely on your geographic location. To find energy-efficient options tailored to your home and climate, the<\/span><\/i> National Fenestration Rating Council<\/span><\/i><\/a> provides a helpful window selection tool at <\/span><\/i>Efficient Windows.<\/span><\/i><\/a>“<\/span><\/i><\/p>\r\n\r\n\r\n\r\n

10. Take advantage of online energy analysis tools<\/span><\/h3>\r\n\r\n\r\n\r\n

A valuable step in managing your utility expenses is to explore the online resources offered by your provider. Often accessible through their customer portal, these tools can offer significant insights into your energy consumption. <\/span>Many utility providers offer helpful online tools. These tools often allow you to answer questions about your home and energy habits to receive personalized recommendations for reducing your usage. This can be an easy way to identify specific areas where you can cut back and potentially discover helpful programs offered by your utility company. By taking advantage of such features, you can gain personalized guidance on how to lower your energy bills.<\/span><\/p>\r\n\r\n\r\n\r\n

Expert tip:<\/strong>\u00a0 \u201cEnergy vampires are those devices running in the background, silently sucking up electricity without you even realizing it. Use smart power strips or timers to automatically cut off these hidden drainers so you don\u2019t have to think about it every day. Then build in a weekly \u2018Power Pause\u2019 \u2014 a five-minute habit to walk your space with intention, unplug what you don\u2019t need, and stay aware of what\u2019s running your bill up behind the scenes. Small shifts like this lead to powerful, lasting change\u2014in your energy and in your life.\u201d<\/span><\/em> \u2013 <\/span>Michelle Weime<\/span>r<\/span><\/a>,<\/span><\/a> certified High Performance Coach<\/span><\/p>\r\n\r\n\r\n\r\n

Gas<\/span><\/h2>\r\n\r\n\r\n\r\n

Average gas bill: <\/span><\/i>$61.69<\/span><\/i><\/a><\/p>\r\n\r\n\r\n\r\n

Saving on natural gas bills requires a combination of energy-efficient practices, proper home maintenance, and investing in efficient electric appliances. <\/span>Natural gas<\/span><\/a> is a fossil fuel that can cause <\/span>indoor air pollution<\/span><\/a> and lead to health hazards.<\/span><\/p>\r\n\r\n\r\n\r\n

The most common natural gas appliances are stoves, water heaters, and HVAC systems. Lowering your usage is critical to saving money and reducing your footprint. Utility companies typically use a meter and charge a certain amount <\/span>per therm<\/span><\/a> (100,000 BTU, or 29 kWh).<\/span><\/p>\r\n\r\n\r\n\r\n

Expert tip<\/em><\/strong>:<\/span> \u201cWhen people think of air duct cleaning, they often think about the removal of dust or odors. Keeping these airways clear allows your HVAC system to perform at its best, delivering fresh, efficient airflow without overexerting itself. With less strain, your system operates more efficiently\u2014lowering utility bills and energy costs.\u00a0 As an added bonus, more efficient airflow can extend the lifespan of your furnace and A\/C, which results in fewer costly repairs and replacements over time.\u201d –<\/span><\/i> Jake Silker with <\/span>Indoor Air Duct Cleaning\u00a0<\/span><\/a><\/p>\r\n\r\n\r\n\r\n

Here are some tips to help you reduce your natural gas consumption:<\/span><\/p>\r\n\r\n\r\n\r\n

1. Switch to electric appliances<\/span><\/h3>\r\n\r\n\r\n\r\n

Transitioning to electric appliances like <\/span>stoves<\/span><\/a>, water heaters, and <\/span>dryers<\/span><\/a> can decrease your dependence on natural gas and contribute to a cleaner environment. To maximize these benefits and achieve significant cost savings, it’s crucial to consider your electricity source. Senior Marketing Manager, Shelly Littman with<\/span> Enact Solar<\/span><\/a> emphasizes this, stating, “Going solar is one of the most effective ways to reduce electricity costs. As utility rates continue to rise, generating your own power is a smart financial decision, as it allows you to significantly offset your utility bills.”\u00a0<\/span><\/p>\r\n\r\n\r\n\r\n

While solar is a long-term investment, you can start saving right away by using energy-efficient appliances. These appliances use less electricity to perform the same tasks, helping you lower your bills from day one. Discover more expert tips on saving energy from Enact here<\/a>.” Therefore, pairing your electric appliances with renewable energy sources such as <\/span>solar<\/span><\/a>,<\/span> hydropower<\/span><\/a>, and <\/span>wind<\/span><\/a> is the most effective way to achieve substantial long-term savings.<\/span><\/p>\r\n\r\n\r\n\r\n

Expert tip<\/strong>: \u201cExtreme weather is putting a serious strain on the aging electrical grid, so adding your own solar batteries to your home allows you to store excess solar energy generated during peak sunlight hours, reducing reliance on grid power, especially during expensive peak usage times. This stored energy can power your home during outages, preventing food spoilage and ensuring essential systems remain operational. Over time, this decreases your electricity bills and provides greater energy independence and peace of mind.\u201d-Scott Laskey founder & CEO at <\/span><\/i>Sandbar Solar & Electric<\/span><\/i><\/a><\/p>\r\n\r\n\r\n\r\n

2. Adjust your thermostat<\/span><\/h3>\r\n\r\n\r\n\r\n

Lower the thermostat during winter months and raise it during summer months when you\u2019re not at home or while you\u2019re sleeping. Every degree of adjustment <\/span>can lead to 3% savings<\/span><\/a>, which adds up over time.\u00a0<\/span><\/p>\r\n\r\n\r\n\r\n

Expert tip<\/i><\/b>: \u201cUltimately, boosting your home’s energy efficiency boils down to two core principles: minimizing energy loss and reducing overall energy consumption. The simplest initial step is to lessen the temperature difference between your indoor and outdoor environments \u2013 essentially, avoid drastically cooling your home to 64\u00b0F when the outside temperature soars to 104\u00b0F.<\/span><\/i><\/p>\r\n\r\n\r\n\r\n

However, the most substantial heating and cooling losses often stem directly from the building itself. Common culprits include poorly insulated attics, outdated aluminum-frame windows and doors, open fireplace dampers, window AC units left in during colder months, continuously operating ventilation systems, and air leaks in the building envelope. Notably, heat loss through ceilings and roofs is considerably greater than through walls, underscoring the critical importance of effective attic insulation.\u201d-<\/span><\/i>Aleksandr Berestovoi, Chief Mechanical Engineer & Owner, <\/span><\/i>MainDuct Inc.<\/span><\/i><\/a><\/p>\r\n\r\n\r\n\r\n

3. Insulate your home<\/span><\/h3>\r\n\r\n\r\n\r\n

Proper insulation helps keep your home warm during winter and cool during summer, reducing the load on your water heater and HVAC system. Insulate walls, attics, and floors, and seal gaps around windows and doors to prevent drafts. <\/span>\u00a0Insulating your water pipes is also critical, especially in <\/span>extreme climate<\/span>s<\/span><\/a>.\u00a0<\/span><\/p>\r\n\r\n\r\n\r\n

Bill Ryan, Territory Sales Manager for Maine & New Hampshire at <\/span>TimberHP<\/span><\/a>, points out that the most significant impact often comes from improving your building’s thermal envelope \u2013 the barrier between your interior and the outside world. He explains, <\/span>“Air leaks around windows and doors, gaps in insulation, and even small cracks in your foundation can quietly hike up your heating and cooling bills. Sealing, insulating, and weatherproofing these areas can reduce drafts and cut energy use by up to 20%. We recommend starting with simple fixes like plastic window sheeting and weather stripping, but the real magic happens when you tackle insulation and airtight construction head-on, which is where TimberHP\u2019s wood fiber insulation comes into play\u2014it\u2019s high-performance, vapor-open, and made sustainably in the US.”<\/span><\/i><\/p>\r\n\r\n\r\n\r\n

Another way to insulate your home is to utilize thermal curtains. \u201cThermal curtains serve as an effective barrier against extreme temperatures,\u201d continues Kelly Dougherty. \u201cIn the summer, they help keep hot air out, while in the winter, they prevent drafts and frost from entering your home, saving you money on heating and cooling bills.\u201d<\/span><\/p>\r\n\r\n\r\n\r\n

4. Maintain or replace your heating system<\/span><\/h3>\r\n\r\n\r\n\r\n

Regularly clean and replace furnace filters, and schedule annual maintenance checks to keep your heating system running efficiently. Another option is to switch out your furnace with a <\/span>geothermal heat pump system<\/span><\/a>, which is efficient and entirely carbon-neutral. You can receive tax breaks and incentives for switching as well.\u00a0<\/span><\/p>\r\n\r\n\r\n\r\n

To further reduce energy costs, consider upgrading to a more efficient HVAC system. When selecting a company for this important investment, the team at<\/span> Argent Heating & Cooling <\/span><\/a>offers key advice: \u201cAfter vetting and narrowing down your HVAC company options, ask for itemized estimates outlining labor and material costs,\u201d they recommend. \u201cA reputable HVAC service should provide a clear breakdown of the costs involved. Remember to ask about warranties or guarantees that come with the service, which can help finance and protect your investment.\u201d<\/span><\/p>\r\n\r\n\r\n\r\n

Complementing the importance of HVAC system upgrades, both Brandon Beattie, Owner of <\/span>Breezeway Air Duct Cleaning in Los Angeles, CA<\/span><\/a>, and Ray Gray, President of <\/span>Mighty Duct<\/span><\/a>, emphasize the ongoing need for system maintenance to maximize efficiency. Beattie explains, <\/span>“Beyond upgrades, regular air duct cleaning not only improves indoor air quality but can also reduce energy consumption by enhancing airflow efficiency. When ducts are clogged with dust and debris, HVAC systems must work harder to push air through, using more energy. Clean ducts ensure that air flows freely, reducing strain on the system, which in turn lowers energy usage and helps maintain consistent temperatures throughout the home. Additionally, removing contaminants and maintaining a clean and efficient system can help prevent system breakdowns, saving homeowners from potential costly repairs and energy spikes.”<\/span><\/i><\/p>\r\n\r\n\r\n\r\n

Gray further elaborates on how dirty ducts impact system performance, stating, <\/span>“Although lowering the cost of energy is not the top 5 reasons to get your air ducts cleaned, it may help. Over time, dirt, dust, and debris will find its way to the air conditioning coils. Because of this, the air will not flow as freely through the coil. The bottom line is the static pressure increases and makes the system ‘work harder’.”<\/span><\/i><\/p>\r\n\r\n\r\n\r\n

5. Use weatherstripping<\/span><\/h3>\r\n\r\n\r\n\r\n

Apply weatherstripping around windows and doors to seal any gaps that might be letting cold air in and warm air out during winter months.<\/span><\/p>\r\n\r\n\r\n\r\n

Kelly Dougherty adds more. \u201cDuring the colder months, it\u2019s crucial to inspect and seal all windows and doors to prevent drafts. Proper insulation ensures your home stays warmer naturally, reducing the need for additional heating.\u201d<\/span><\/p>\r\n\r\n\r\n\r\n

\"how-to-save-money-on-utilities-6\"<\/figure>\r\n\r\n\r\n\r\n

 <\/p>\r\n\r\n\r\n\r\n

Water<\/span><\/h2>\r\n\r\n\r\n\r\n

Average water bill: <\/span><\/i>$45<\/span><\/i><\/a>–<\/span><\/i>$72<\/span><\/i><\/a><\/p>\r\n\r\n\r\n\r\n

Reducing your water use can mean lower costs and lower natural impact, which is especially important if your home is <\/span>at risk of drought<\/span><\/a>. The average US resident uses <\/span>84 gallons<\/span><\/a> of water every day. This equates to over 10,000 gallons of water per month for a family of four. Companies also use <\/span>different billing rate<\/span><\/a> methods, which are:\u00a0<\/span><\/p>\r\n\r\n\r\n\r\n