Scary High Electric Bills

Here we are in October already. It’s the month of spooky surprises around every corner. That’s all good when it comes to haunted houses, horror movies, and trick-or-treating, but not so fun when it comes to a shockingly high electric bill. Generations of kids have grown up listening to their father remind them that he isn’t paying to heat or cool the neighborhood, and we get it! The cost of electricity has skyrocketed over the last couple of years, and while there is a forecasted decrease expected in 2024, the prices are still remarkably high.

Did you spend the summer cooling your home to a balmy 78 degrees?

No? Me neither. Of course, the result on my bill, and yours too, is more due than if we chose to sweat it out. The Department of Energy (DOE) recommends setting your home thermostat to 78 degrees in the summer and 68 degrees in the winter. The goal is to create an interior atmosphere that is as close as possible to the outside atmosphere – while maintaining comfort.

I know those temperature settings won’t fly around my house, but fear not. A sky-high bill is not set in stone. There is another option for those of us who can’t power through the suggested temperature settings. The DOE says that shifting your thermostat by 7-10 degrees from your typical setting for at least eight hours per day can help lower your bill by up to 10%. Keep in mind, an AC unit can only cool your home by 15-20 degrees lower than outside temperatures, so setting the thermostat lower or higher than that is just wasting your dollars.

Yes, the most significant drain on your power (and subsequently the highest impact on your electric bill) is your air conditioning and heating units, so you might think that the cooler temperatures accompanying the changing season guarantee a lower bill, but not so fast. The temperature at home “only” accounts for a little over 45% of your bill, so what else significantly contributes to that total?

As I researched for this post, I found myself to be a little surprised that the water heater was in second place. Coming in hot (lol) at about 18% of your bill, this home system can really do some damage. Daily showers, cleaning dishes, washing hands, and cooking add up, but you don’t have to convert to ice-cold showers to save money. You can save a little bit by shortening showers by a few minutes (four, to be exact), switching to an energy-efficient showerhead, and not cranking the hot water all the way up. Moving on…

Shining brightly in our third-place spot, it’s no surprise here – your home’s lighting. This accounts for approximately 14% of your total bill. Remember your parents nagging you about turning off the lights when you leave a room? Turns out, it’s for a good reason. Saving money here is as easy as the flip of a switch. Turn lights off when not in use. During the day, open blinds and curtains to let sunlight in. You can also install dimmers on your lighting to use even less energy but not sacrifice some luminosity.

Coming up close behind lighting is the rest of your household appliances at 13% of your bill. Your fridge, oven, washer, dryer, and microwave feed off your power. Aside from buying efficient appliances, there’s not much you can do here to save money, right? Wrong! You can save by adjusting the temperature on your fridge and freezer – 40 degrees is the highest setting you would want to consider for your fridge (though, to be fair, that cuts it very close, and I would forego the few bucks savings and keep mine set no higher than 37 degrees.) and 0-5 degrees for your freezer. It should go without saying that standing in front of an open fridge can tack on the dollars (and pounds :P), so know what you want before opening the door to save more.

Other ways to save on your appliance use include:

·         Set your fridge and freezer in a cool spot – they won’t have to work so hard to keep cool.

·         Stick to cold or warm settings and wash full loads of clothes. Hot water can steam up that bill.

·         Can you skip the dryer cycle and hang clothes out to dry? In inclement weather, consider an interior drying rack to air dry clothes.

·         Dryer balls are your friend! These inexpensive and eco-friendly little guys can save you big bucks!

As for the rest of your bill, you guessed it – it’s comprised of all the other…stuff. You’ll undoubtedly have your television(s), PCs, gaming systems, small appliances, and other items plugged in. In the past, the recommendation was to unplug devices when not in use. As it turns out, this is not necessary, but you can still do things to save more on your bills. Here are some easy changes you can make at home to save a bit more.

1.       Replace your weather stripping. Your exterior doors have weather stripping that helps prevent creepy crawlies from entering your home and guard against the weather. That material can degrade quickly, so if you notice it cracking, chipping, or coming loose, it’s time for a refresh. It’s an easy and inexpensive fix that can save you money (and keep those uninvited pests from overstaying their welcome indoors.)

2.       Purchase draft stoppers for your front door. These inexpensive trims are easy to install and customizable to your door size. Use rolled towels to block the wind in a pinch until you can install your trim.

3.       Ceiling fans are your friend. Be sure to circulate in the right direction for the season. During the summer or hotter months, you will want the fan to rotate counterclockwise, while the cooler months call for a change to clockwise.

4.       Make the switch to LED bulbs. This is pretty standard these days, but if you have older light bulbs, it’s time to swap them out for more efficient LED bulbs.

5.       Use your voice. Call your power company to ask about discounts, lower rates, an energy audit, or an efficiency care package. My electric company, for instance, will send these out to homeowners twice a year. The package will often include an energy-efficient showerhead, a smart LED bulb, smart outlets, and other nifty items.

6.       Maintain your systems. Keep your heat pump or furnace in tip-top shape. Consider a bi-annual tune-up or otherwise keep up with your recommended service plans.

7.       Replace damaged or missing window blinds. You might consider a heavy-duty vinyl blind or go with a shade. Used in conjunction with curtains with a blackout backing, you can help insulate your home from the temperature outside while making your home look more inviting. Win-win.

8.       Speaking of windows, how old are yours? Replacing windows that have cracked or lost their seal is a no-brainer for long-term savings.

9.       Are solar panels an option? Every home and homeowner has unique needs, but it might make sense to consider solar panels. Just be sure to do your research and work with a reputable company. For more info on making the switch to solar, check out these resources from the DOE.

What do you do to save money on your electric bill? I want to hear from you. Leave a comment below or email me.

Krista Kyte is a personal finance blogger and personal banker with over 21 years of experience in the financial industry. Krista is passionate about helping our members understand their financial situations. She writes tips that help consumers reach and maintain financial security and start living the life they’ve always wanted.