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The Best Ways to Lower Your Energy Bills

Find likely sources of high energy use, tackle drafts and maintenance first, and assess major upgrades against your home, climate and local costs.
From TheFinanceBase Team4 min to read
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The best way to lower an energy bill is to find where your home is losing or using the most energy, then address that cause. Start with your utility-use history, drafts, thermostat schedule and HVAC filter. Seal obvious leaks and improve insulation where it makes sense; compare major equipment upgrades only after considering your home, local energy prices and installation costs. The right mix varies by household, climate and fuel type.

Start by finding the biggest opportunities

Heating and cooling, hot water, appliances and lighting all affect household energy use, but their share varies from home to home. The U.S. Department of Energy (DOE) reports that heating and cooling typically account for 43% of a home utility bill, water heating about 12%, appliances about 15% of household energy consumption, and lighting 11% of the average household energy budget. These are broad figures on DOE’s energy-efficiency page, not a breakdown of your own bill.

Review your utility statements for changes in consumption and cost, and look for likely causes such as drafts, rooms that are difficult to heat or cool, or equipment that is due for service. If the source of high use is unclear, a home energy assessment can help identify whether air leakage, insulation, HVAC equipment or another issue deserves attention. DOE recommends taking a whole-house view rather than treating every home as if it needs the same upgrade.

Choose actions that fit your home and budget

Option Typical role What to consider
Air sealing and weatherstripping Reduce drafts and uncontrolled air leakage Where leaks are, whether the parts are fixed or movable, and moisture and ventilation needs
Thermostat scheduling and HVAC upkeep Adjust operation and maintain equipment Household schedule, system type and heat-pump control compatibility
Insulation and whole-home weatherization Improve the building envelope Assessment findings, climate, existing insulation and project cost
Heat pump or other HVAC replacement Replace major heating or cooling equipment Existing system and fuel, climate, installation needs and local energy prices
Water-heating changes Reduce hot-water use or improve equipment efficiency Heater type, household demand, installation conditions and local incentives
Efficient bulbs and appliances Reduce use when replacing inefficient products Existing efficiency, how often the product is used, purchase cost and operating cost

Seal drafts and address insulation gaps

Air sealing is often a practical first improvement when you can identify leaks. DOE recommends caulking small gaps and using weatherstripping on movable parts of windows and doors. Its guidance also points to leaks around floors, walls, ceilings, doors, windows and fireplaces. For suitable projects, insulation may be added in attics, crawl spaces, basements or exterior walls.

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#1 Best Overall
Tapo Smart Plug, Matter Compatible, Energy Monitoring, P110M(4-Pack), 15A
  • 【Matter-Certified】Matter-certified devices, regardless of brand, can work together and are compatible with most major smart home platforms like Amazon Alexa, Apple HomeKit, Google Home, and Samsung SmartThings. Enjoy more flexible and unified control.
  • 【Insightful Energy Tracking】 Monitor your energy consumption with in-depth statistics and clear visuals, helping you optimize power usage.
  • 【Estimate Your Energy Bill】 Enhance energy management by integrating with billing systems for clear cost visualization (both single and periodic readings). Additionally, programmable scheduling allows automatic operation of high-consumption devices during off-peak hours with lower electricity rates, resulting in cost savings.
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Do not assume a draft automatically means you need more insulation: air leakage, insulation, HVAC performance and other issues can require different fixes. An assessment can help identify the cause. Keep moisture and ventilation needs in mind when sealing or insulating, particularly if you are unsure how the work may affect airflow.

Adjust thermostat settings and maintain HVAC equipment

DOE says turning a thermostat back 10% to 15% for eight hours can save as much as 10% a year on heating and cooling bills. That is a potential savings estimate, not a guarantee for an individual household; actual results depend on the home, system and how it is operated. A schedule that suits your household may help avoid heating or cooling an empty home unnecessarily.

Rank #2
Tapo Smart Plug Wi-Fi, Energy Monitoring, P115(4-Pack), 15A
  • 【Insightful Energy Tracking】Track your plug's energy use with clear and easy-to-understand statistics and intuitive charts, helping you optimize power usage.
  • 【Estimate Your Energy Bill】 Enhance energy management by integrating with billing systems for clear cost visualization (both single and periodic readings). Additionally, programmable scheduling allows automatic operation of high-consumption devices during off-peak hours with lower electricity rates, resulting in cost savings.
  • 【Smart Charging for Devices】Automatically cuts power once your device reaches the low-battery limit you set, preventing overcharging.
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Check the HVAC filter monthly and replace it when dirty; DOE’s winter guidance says to replace it at least every three months. Regular professional maintenance is another DOE recommendation. Heat pumps can respond differently to thermostat setbacks than conventional systems, so use controls compatible with the installed equipment.

Reduce hot-water energy use

DOE’s home checklist recommends setting a water heater to 120°F. Other useful steps include reducing hot-water use and insulating water-heating pipes where appropriate. These measures can help without replacing equipment.

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Rank #3
Govee Smart Plug with Energy Monitoring, WiFi Bluetooth Outlet, 4 Pack
  • Real-Time Energy Monitoring: Smart plugs track the real-time power, current, and voltage of your plug-in devices on Govee Home App. Supports reviewing data daily / weekly / monthly and up to 1 year to effectively save energy and reduce waste.
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  • Safe and Comfortable Smart Home: Govee plug not only fully FCC & ETL certified, but also made of fire-resistant materials. 15A 120V smart outlet is suitable for high-power appliances such as coffee maker, brings you a stable and safe life assistant.

If the existing heater needs replacement, compare efficient models based on household hot-water demand, the home’s installation conditions and local rates. A unit must be suited to the household and site; equipment efficiency alone does not establish the likely bill reduction.

Target lighting and appliance replacements

Efficient lighting is most relevant in frequently used fixtures. Replacing an inefficient bulb with an efficient option can reduce the electricity used for that light, but the household effect depends on what is replaced and how long it is used.

Rank #4
Tapo Smart Plug Wi-Fi, Energy Monitoring, P115(2-Pack), 15A
  • 【Insightful Energy Tracking】Track your plug's energy use with clear and easy-to-understand statistics and intuitive charts, helping you optimize power usage.
  • 【Estimate Your Energy Bill】 Enhance energy management by integrating with billing systems for clear cost visualization (both single and periodic readings). Additionally, programmable scheduling allows automatic operation of high-consumption devices during off-peak hours with lower electricity rates, resulting in cost savings.
  • 【Smart Charging for Devices】Automatically cuts power once your device reaches the low-battery limit you set, preventing overcharging.
  • 【Auto-Shutoff】Prevents electrical overload by automatically shutting off devices that use too much power.
  • 【Voice & Remote Control】 With built-in support for both Alexa and Google Assistant, issue simple voice commands to adjust settings, turn devices on or off, or even access specific functions without lifting a finger. Manage Tapo P115 and its connected devices from anywhere with the user-friendly Tapo app.

When an appliance needs replacement, DOE recommends considering ENERGY STAR-qualified products. Compare purchase and operating costs, and prioritize products that are inefficient and used often. Replacing working appliances solely in expectation of savings may not make financial sense.

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When a major heating or cooling upgrade may make sense

Heat pumps transfer heat rather than generate it. DOE says today’s air-source heat pumps can reduce electricity use for heating by up to 75% compared with electric-resistance heating. That comparison is specifically with electric resistance; it is not a universal savings estimate against gas, oil or every existing system. Bill effects and suitability depend on climate, system sizing, installation, home condition and energy prices.

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Best Value
Kasa Matter Smart Plug with Energy Monitoring, KP125MP4, 15A/1800W Max
  • 【Matter-Compatible Smart Home Integration】Works with Matter-certified platforms such as Apple Home, Amazon Alexa, Google Home, and Samsung SmartThings. Users can manage compatible devices across supported apps within the Matter ecosystem.
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DOE advises homeowners replacing gas heat with a heat pump to weatherize first to support savings and comfort. Options include ducted and ductless air-source heat pumps, geothermal systems and dual-fuel systems. Compare them against your existing distribution system, heating fuel, cold-weather needs, home envelope and quoted installed cost. Without local prices and details about the home, a general payback estimate would be unreliable.

Check assistance and local incentives

Eligible households may be able to get whole-house improvements through the Weatherization Assistance Program (WAP), and the Low Income Home Energy Assistance Program (LIHEAP) can help eligible lower-income households with energy costs and related needs. Availability, administrators, funding and eligibility depend on current state and local rules; a DOE program description cannot establish whether a particular household qualifies.

Before committing to an upgrade, check current information from your utility, state energy office or local program administrator. Incentive amounts and requirements can change, and eligibility may depend on the product, household or location.

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

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