15 ways to lower your electric bill in winter

Quick answer: The biggest wins are turning your thermostat back 7–10°F for 8 hours a day (the Department of Energy says this can save up to 10% a year on heating and cooling), sealing drafts, setting your water heater to 120°F, washing clothes in cold water, and heating only the rooms you use. Most of these cost little or nothing.

Key takeaways

• Heating is usually the biggest share of winter energy use — start there.
• Turning the thermostat back 7–10°F for 8 hours a day can save up to 10% a year on heating and cooling.
• Air sealing and attic insulation are the best-value upgrades for most homes.
• Set the water heater to 120°F and wash clothes in cold water.
• Ask your utility about budget billing, time-of-use plans and rebates.

Electricity prices keep climbing — the average US home paid about 17.3¢ per kWh in 2025, and the EIA expects about 18.2¢ in 2026. Heating is the largest energy expense in most homes in winter, so that is where to start.

#Heating: the biggest part of your bill

1. Turn the thermostat back when you sleep or leave

The Department of Energy suggests about 68–70°F while you are awake and lower while you are asleep or away. Turning it back 7–10°F for 8 hours a day can save up to 10% a year on heating and cooling. A programmable or smart thermostat does it automatically. See our guide to the best thermostat settings for winter.

Exception: if you have a heat pump, use small setbacks or a heat-pump-aware thermostat — deep setbacks can trigger expensive backup heat.

2. Seal air leaks

Drafts around windows, doors, attic hatches, outlets on exterior walls and plumbing holes let warm air escape. Caulk and weatherstripping cost a few dollars per opening and are usually the best-value upgrade in the house.

3. Use curtains to your advantage

Open curtains on south-facing windows during sunny days to let the sun heat your rooms, and close them at night to hold in the warmth.

4. Change your furnace or heat pump filter

A clogged filter makes the blower work harder and lowers efficiency. Check it monthly in winter and replace it when it looks gray and dusty.

5. Don't block vents and radiators

Furniture, rugs and long curtains over supply vents waste heat. Keep a few inches clear.

6. Reverse your ceiling fans

Set ceiling fans to spin clockwise at low speed in winter. That gently pushes warm air from the ceiling back down without creating a chill.

7. Heat the room you're in — wisely

A space heater can save money only if you lower the main thermostat for the rest of the house. A 1,500 W heater costs about 27¢ an hour at the US average rate.

8. Book a heating tune-up

A yearly service catches small problems, cleans burners or coils and keeps the system running efficiently. Many utilities offer discounted tune-ups or free home energy audits.

#Hot water: usually the second-biggest cost

9. Set the water heater to 120°F

If yours is set higher, 120°F — the Department of Energy's recommended setting — is enough for most households and cuts standby heat loss. (Homes with elderly or immunocompromised people should ask a plumber; a higher setting with anti-scald valves can reduce Legionella risk.)

10. Wash laundry in cold water

A large share of the energy a washing machine uses goes into heating the water. Modern detergents clean well in cold water.

11. Fix drips and use low-flow showerheads

A dripping hot tap is money down the drain. Low-flow showerheads cut hot water use without a weak shower.

#Everything else

12. Switch remaining bulbs to LED

ENERGY STAR certified bulbs can use up to 90% less energy and last at least 15 times longer than standard bulbs — and winter means more hours of lighting.

13. Cut "phantom" power

TVs, game consoles, chargers and computers draw power even when "off". A smart power strip or a simple switch-off at night stops the trickle.

14. Use your dryer and oven efficiently

Clean the dryer lint filter every load, dry full loads back to back while the drum is warm, and use the microwave, air fryer or slow cooker for small meals instead of the full oven.

15. Check your utility's plans and programs

Ask about time-of-use rates (cheaper power at off-peak hours), budget billing (evens out winter spikes), rebates for insulation or smart thermostats, and free energy audits. Some of these can save more than any single gadget.

#Bigger upgrades worth pricing

If your bills stay high after the basics:

• Add attic insulation — often one of the best-returning home upgrades in cold climates.
• Replace an old system — an aging furnace or electric baseboard heat can be replaced with a heat pump. See heat pump vs furnace and new furnace cost.
• Upgrade windows only if they are failing — compare window replacement costs with cheaper draft fixes first.

#Quick wins vs bigger upgrades

#Understand your bill first

1. Look at kWh used (not just dollars) and compare with the same month last year.
2. Check your rate plan — some plans charge more for evening use.
3. Look for fixed charges you can't change.
4. Many utilities offer free or low-cost home energy audits — the auditor finds the biggest leaks for you.

Example: Your December bill shows 1,800 kWh with electric baseboard heat. A 7°F overnight setback and sealing a few drafty windows cut use by about 10% — 180 kWh, or about $33 a month at 18¢/kWh. Moving the main living area to a ductless heat pump could cut heating electricity by half or more.

#Help if you're struggling to pay

• LIHEAP (Low Income Home Energy Assistance Program) helps eligible households with heating bills — apply through your state or local agency.
• Many utilities offer payment plans, budget billing and hardship programmes.
• Weatherization Assistance Program provides free efficiency upgrades for eligible households.

#Frequently asked questions

Why is my electric bill so high in winter?

Heating runs for many hours a day, days are shorter so lights stay on longer, and hot water takes more energy to heat because incoming water is colder. Electric heat — especially baseboard heaters and space heaters — pushes bills up quickly.

What temperature should I set my thermostat in winter to save money?

The Department of Energy suggests about 68–70°F while you are awake and lower when you are asleep or away. Every degree lower helps.

Does turning the heat off and on cost more?

For furnaces, no — the DOE says a setback saves energy because your home loses heat more slowly when it is cooler. Heat pumps are the exception: deep setbacks can trigger costly backup heat, so use small setbacks or a heat-pump-compatible thermostat.

Do space heaters save money?

Only when they let you keep the rest of the house cooler. Using one on top of normal central heating raises your bill.

Does unplugging appliances save money?

It helps a little. Standby power can be 5–10% of home electricity use; smart power strips make it easy.

Do LED holiday lights use much electricity?

Very little — LED strings use far less than old incandescent lights. Put them on a timer to save more.

What is budget billing?

Your utility averages your yearly costs into equal monthly payments, so winter bills don't spike. It doesn't lower total cost, but makes budgeting easier.

#Sources

• U.S. Department of Energy — Thermostats
• This Old House — How to adjust your water heater temperature
• ENERGY STAR — Light bulbs
• U.S. EIA — Short-Term Energy Outlook, electricity prices
• U.S. Department of Energy — Weatherization Assistance Program
• ENERGY STAR — Seal and insulate