Save On Your Energy Bills, 6 Simple Changes

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

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

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

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

While basics like shutting off the lights when you leave a room and raising the temperature setting on 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 won’t just help us save on energy bills to make ends meet, but could significantly cut the world’s carbon emissions.

1. Comparison Shop

Did you know that in most U.S. cities, you can compare shops to save on your 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. This can be confusing. Just remember, the term 3rd Party Provider or “supplier ” almost always refers to a company other than the one handling your current and future billing.

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

For our example, we will call your current company the provider, and you can choose a different supplier; your current provider will continue to handle billing on the other suppliers’ behalf if you choose a supplier. For most people, the most important 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 be slightly different from where you are, but it 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.  This cost will generally change seasonally on June 1st and October 1st (the beginning of the winter months) each year to reflect changes in the energy, capacity, and ancillary service cost components. 

In the United States, the Federal Energy Regulatory Commission approved changes to the transmission cost component, the reconciliation cost component, and other 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 compare shops to choose the best cost and value to help you save on your energy bills.

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

Unfortunately, the cost can also increase on December 1st and February 1st of each year if costs increase significantly. In New Jersey, the utility is also permitted to self-implement rate decreases (or bill credits/refunds) at any time.

It can be a lot of work to compare shops for the best energy prices, but it’s well worth it. It can be a one-time thing, or you can be like me and check for the best prices every year 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 more and more popular. These more efficient light bulbs are also being made to fit more and more applications every day.

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

Please check regularly, as these money-saving light bulbs may fit an application that meets your needs today, even though they did not yesterday. Adding timers can make these applications even more efficient, helping save on your energy bills.

You have to be creative. Go see what is available, and mix and match to best meet your needs. Some light bulbs use less energy than others. And you can increase savings by using timers that turn off lights automatically when they’re not in use.

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

3. Solar

You can realize HUGE savings on your energy bills with solar, but Solar can put an even larger dent in your savings account.

Yes, Solar can be very complicated and very expensive, and it is not a wise choice for the majority of people. For that reason, we will not cover the possibilities in depth.

I would like for you to know it exists and could be a great fit for you. Solar panels can be installed on your home’s roof to 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 around $6,500 (£4,800) to install, depending on the size of the 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, due to an overabundance of excess energy being collected by households, some of these programs are being curtailed or ended.

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

4. Heating

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

Did you know that reducing your home’s temperature by 1.8 degrees Fahrenheit (one degree Celsius) can produce a significant difference in your home’s energy cost? Setting your room thermostat one degree higher could increase your heating costs by 10 percent, and vice versa.

To save money on your energy bill, set your thermostat to the lowest comfortable setting. Invest in a smart thermostat because it 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 your 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 the winter months, but adding water to your energy-saving routine will lead to savings year-round.

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

This saving comes from heating less water, and, even more, from lower water bills for using less water.

You can even multiply these savings by reducing either the bath depth or the time in a shower, without any impact on your quality of life.

Heating a large water tank is a big energy draw. The average household spends $400 to $600 a year just to heat water, which can account for 14% to 18% of the total utility bill, according to energy.gov.

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

You can avoid all of that by installing a tankless water heater. They heat water on demand and save energy by not constantly keeping a large water tank heated.

Use the cold-water setting when washing clothes to save energy on heating water. I hated this idea when I first heard it, but after trying it, I am sold. Heating water accounts for about 90% of the energy used to operate a clothes washer, 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, together, could add up to significant savings.

Heating and Air Conditioning

Keep your heating and air conditioning unit running efficiently by changing the filters regularly. They get dirty and bog down your system. Change your filter as recommended by the manufacturer.

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 rates are lower.

In most cases, Utility companies will charge more for energy during peak times. That is 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 draw power.

Seek out the devices you can live without being unplugged and unplug them. I plug those devices into power strips and turn them 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, there is less surrounding air to cool. Allowing a cool temperature to be maintained for longer in the event of 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 circulate air and make people feel cooler. They can also be used to 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 back down, making 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 having small gaps 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. There are off-the-shelf products that 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 greatly lower energy costs.

Go Old School

Switching to clothesline drying or an indoor drying rack will increase your savings, as tumble dryers are often the biggest energy hogs in the 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.`

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