Tips to reduce utility costs around the house

The cost of goods and services has risen considerably in recent years. Food and fuel costs garner considerable attention, but utilities also are stretching consumers’ budgets.

Data from the U.S. Energy Information Administration indicates that electricity costs have increased by approximately 37% since 2020. That’s making it hard for many people to pay their energy bills on time. In fact, the National Energy Assistance Directors Association reports that household energy arrearages, or the amount of money people owe on energy bills past the due date, rose by more than 30% between December 2023 and June 2025. That’s a troubling development in its own right, but perhaps even more so given NEADA projections indicating the cost to heat a home over the winter of 2026-2027 was expected to increase by nearly 9% compared to the year prior.

With utility costs rising and a significant number of consumers falling behind on their energy bills, now is a great time to examine ways to reduce utility costs.

• Reconsider your existing lighting. Millions of consumers have replaced incandescent light bulbs and/or compact fluorescent lamps with LED lights in their homes. According to the energy experts at Reliant®, a single traditional incandescent bulb uses around 60 watts, while an LED bulb requires between eight to 12 watts to produce the same amount of light. By switching to the more efficient LED bulbs, consumers can reduce their energy consumption and thus reduce their monthly utility bills.

• Identify and address devices consuming energy when not in use. Some electronics may be characterized as “vampires” because they are consuming energy even when they are not being used. Kitchen appliances, DVRs and even computers may be silently increasing your energy consumption even when they’re not being used. But consumers need not worry they need to unplug everything each day in order to cut their utility costs. Advanced power strips are smart surge protectors that can reduce vampire energy consumption because they automatically turn off ancillary devices like cable boxes when a primary electronic device like a television is turned off.

• Adjust your water heater temperature. The U.S. Department of Energy reports that water heating accounts for roughly 18% of a home’s annual utility costs. That’s a sizable percentage, and many people may be overspending by setting the temperature on their water heaters too high. Energy experts note manufacturers typically set water heater temperatures at 140º F. However, reducing that temperature to 120º can help consumers reduce their water heating energy consumption by more than 20 percent in some households.

• Pay attention to HVAC filters. HVAC filters are easy to overlook, but dirty filters can result in considerably higher utility bills. When filters are not regularly replaced, furnaces and air conditioners are forced to work harder to move air throughout a home. That extra work results in greater energy consumption and, ultimately, higher energy bills. The HVAC experts at Carrier recommend changing air filters every 30 to 90 days.

Utility costs have been outpacing inflation for years, but consumers can embrace various strategies to lower their monthly energy consumption.