Save On Your Energy Bills, 6 Simple Changes

Would you like to save on your energy bills? Home energy costs are on the rise. According to the U.S. Environmental Protection Agency’s ENERGY STAR program, the average household in the United States spends roughly $2,000 a year on energy bills.

Homes in the United States have become disgustingly large, but I am sure energy statistics are similar worldwide.

There are considerable differences in how electricity is generated. For example, Iceland is the only developed nation that produces its electricity from 100% renewable energy sources, while China’s electricity comes almost exclusively from fossil fuels.

According to ElectricRate.com, Egyptians spend only about 2 cents per kilowatt-hour of electricity, while Danish households spend a whopping 34 cents, nearly 17 times more.

While basics like shutting off the lights when you leave a room and raising the temperature setting up your air conditioner a few degrees will help, you’ll have to do more around the house to save significantly on energy costs.

Simple changes to our behavior could help us save on energy bills to make ends meet and significantly cut the world’s carbon emissions.

1. Comparison Shop

Did you know that in most cities in the United States, you can compare shops to save on energy bills? Call your local energy provider and ask for a list of energy suppliers they work with. You can then compare shops and choose the supplier that best meets your needs.

Depending on your location, Provider and Supplier can be used interchangeably, which can be confusing. Remember that the term third-party Provider or Supplier almost always refers to a company other than the one doing your current and future billing.

The company billing you will stay the same; they usually set themselves up as the default supplier. In many cases, they do not offer the best rates, but you will never know if you don’t ask.

For our example, we will call your current company the provider. You can choose a different supplier, and your current provider will continue to do the billing on other suppliers’ behalf if you choose a supplier. For most people, the most crucial comparison metric will be price.

Here in New Jersey, the price metric to compare is the average cost per kilowatt-hour (kWh) for electric generation and transmission. This includes energy, capacity, transmission, ancillary services, line losses, state sales tax, etc. I may differ slightly from where you are, but they will be similar. Check your bill and tell us what it looks like.

In New Jersey, prices to compare also include a reconciliation of costs. These costs generally change seasonally on June 1st and October 1st (the beginning of the winter months) each year to reflect changes to the components of energy, capacity, and ancillary service. 

In the United States, the Federal Energy Regulatory Commission approved changes to the transmission cost component, reconciliation cost component, and other approved changes that will also affect these costs. I am sure you have a similar regulating body where you live.

Check your energy bill for similar charges and comparison shop your choice of suppliers for the best cost and value, which will help you save on your energy bills.

On a gas utility bill, the average cost per therm for natural gas supply is the price to compare. In the United States, this includes state sales tax. Again, this cost will generally change on October 1st (the beginning of the winter months) of each year to reflect changes to the wholesale cost of natural gas, the cost of transporting the natural gas to the utility’s system, and a reconciliation of the expenses from the prior year. 

Unfortunately, if costs increase significantly, the price can also increase on December 1st and February 1st of each year. In New Jersey, the utility can self-implement rate decreases (or bill credits/refunds) anytime.

Comparing shops for the best energy prices can be a lot of work, but it is well worth it. It can be a one-time thing, or you can be like me and check for the best yearly prices to ensure you save on your energy bills.

2. Electricity

The best way to save on electricity is to change how you use it. This generally means using less. But hold on. There are many other ways you may find interesting to help save electricity and save on your energy bills.

As you know, more efficient light bulbs (Compact Fluorescent and L.E.D) are becoming increasingly popular. These more efficient light bulbs are also being made to fit more daily applications.

Did you know LED light bulbs last 42 times longer than incandescent bulbs and use 80% less power? Or An ENERGY STAR-qualified Compact Fluorescent Lamp uses about one-fourth of the energy and lasts ten times longer than a traditional incandescent bulb?

Please check regularly, as these money-saving light bulbs may fit an application that fits your needs today, unlike yesterday. The addition of timers can make these applications even more efficient, helping you save on your energy bills.

You have to be creative. See what is available, and mix and match to meet your needs best. Some light bulbs use less energy than others. You can increase savings by using timers that automatically turn lights off when not used.

Please comment below and tell us what changes you want to make to ensure you save on your energy bills.

3. Solar

With solar energy, you can realize HUGE savings on your energy bills, but solar power can put an even more significant dent in your savings account.

Yes, Solar energy can be complicated and expensive, and it is not a wise choice for most people. For that reason, we will not cover the possibilities thoroughly.

I want to let you know it exists and could be an excellent fit for you. Solar panels can be installed on your home’s roof and convert direct or indirect sunlight into usable energy.

Most Solar arrays require expensive batteries to store the excess energy collected during the day for on-demand use when the Sun is not shining.

Solar panels will cost you around $6,500 (£4,800) to install, depending on the size of the solar panel array, plus expensive batteries to store the energy. However, this investment saves money over time, and many locations offer rebates to offset costs.

In many cases, energy companies will pay for any excess energy your panels produce. Unfortunately, some of these programs are being curtailed or ended due to an overabundance of excess energy being collected by households.

Is Solar the perfect fit to help save on your energy bills?

4. Heating

More than half of household energy is spent on heating living. In the United States, more than two-thirds of our annual natural gas is consumed between November and February during winter.

Did you know that reducing your home’s temperature by 1.8 degrees Fahrenheit (one degree Celsius) can significantly lower energy costs? Setting your room thermostat one degree higher could increase your heating cost by ten percent and vice versa.

Set your thermostat to the lowest comfortable setting to save money on your energy bill. Invest in a smart thermostat, which automatically turns the heating off when the desired temperature is reached.

They can also be programmed to raise and lower heat at different times of day to save on energy bills. You may not need a toasty home when everyone is at work during the day.

5. Water

Most of your energy savings will come from heating during winter, but adding water to your energy-saving routine will lead to yearly savings.

Simple and inexpensive things like upgrading to a more efficient showerhead when used multiple times a day could reduce energy consumption by 5% – 10%

These savings come from having to heat less water and even more; you will save on your water bill for using less water.

You can even multiply these savings by reducing bath depth or shower time without affecting your quality of life.

Heating a large water tank is a significant energy draw. According to energy.gov, the average household spends $400 to $600 a year just to heat water, accounting for 14% to 18% of the total utility bill.

The default setting on hot water heaters is 140 degrees, but lowering it to 120 degrees is OK to save money and enjoy a warm shower.

You can avoid all of that by installing a tankless water heater. These heaters virtually heat water on demand and save energy by not constantly heating a large tank.

Use the cold water setting when washing clothes to use less energy to heat water. I wouldn’t say I liked this idea when I first heard it, but I am sold on it after trying it. Heating water makes up about 90% of the energy it takes to operate a clotheswasher, according to energystar.gov. This was a no-brainer.

6. Household Behaviors

Minor changes in your behavior during the day can save small amounts of energy, which could add to huge savings.

Heating and Air Conditioning

Change the filters regularly to keep your heating and air conditioning unit running efficiently. They get dirty and start bogging down your system. Follow the manufacturer’s recommendations for changing your filter.

The same goes for your furnace (and A/C): keep it clean and change the filter. That may require a professional, but believe it or not, maintenance costs pay for themselves over time. Pay now or pay later.

While You Are Sleeping

Save money when you’re sleeping. Run appliances like the dishwasher and clothes dryer late in the evening or before bedtime when energy goes on sale.

Utility companies usually charge more for energy during peak times, usually daytime to early evening. Check your location for the times.

Unplug Everything

Unplug everything you are not using to save on your energy bills. Even in standby mode, many devices in your home still use power.

Seek out the devices you can live without being unplugged and unplug them. I plug those devices into power strips and turn the power strips on and off as needed.

Freezer Stuffing

The more perishables you store in your freezer, the less energy it will use; by filling the space, less surrounding air needs to be cooled. You are allowing a cool temperature to be maintained for longer during a power outage.

Regularly defrosting your freezer is also a good habit to maintain. The more ice builds up in a domestic freezer, the more energy it uses.

Ceiling Fans

Ceiling fans are installed in homes to move the air around and make people feel calmer. They can also make people feel warmer in the winter months.

The ceiling fan can be switched to spin anticlockwise (reverse), to force warm air that has risen downwards to make a room feel less cold. As long as the fan is set to a slow setting, no uncomfortable breeze will be generated.

Fight Drafts

Repair draft doors and windows. Older homes are prone to have small caps in the doors and windows that allow cold or hot air from the outside to drive up heating and cooling costs.

Have them professionally repaired or replaced to save on your energy bills. Off-the-shelf products work well to temporarily correct these problems. Shop around; they really do work. Even something as simple as placing a bath towel along the gap of all external doors can significantly lower energy costs.

Go Old School

Switching to a clothesline drying or indoor drying rack will increase your savings as tumble dryers are often the most significant energy hogs at home.

Close all windows at night, turn down the thermostat a few degrees, and wear thermals or an extra layer of clothing in the winter months to save on your energy bills.`