How to Save on Your Monthly Electric Bill With These Overlooked Tips

Electricity is essential to modern life, but the costs can really add up. Here are some overlooked tips to help you save money on your monthly electric bill.

Understand How You Are Charged for Electricity

Before looking for ways to reduce your electric bill, it helps to understand how electricity pricing works. There are two main parts to your electric bill:

Delivery Charges

This covers the cost for the utility company to deliver electricity to your home. It includes maintenance of power lines and infrastructure. Delivery charges are usually a fixed rate per kWh.

Generation Charges

This covers the actual cost of generating the electricity you use. It fluctuates based on factors like weather and fuel prices. Generation charges are charged per kWh of electricity used.

Knowing how you are billed can help guide your efforts to conserve electricity and lower costs. Delivery charges stay the same no matter how much you use, but conservation reduces generation costs.

Take Advantage of Electric Plans and Incentives

Many electric companies offer plans that can help you save:

• Time-of-use plans - Electricity costs more during peak hours like weekday afternoons. Using less during those hours saves money.

• Real-time pricing - Electricity prices change hourly based on demand. Adjust your usage to take advantage of lower prices.

• Prepaid plans - Pay ahead of time for electricity at a fixed rate to avoid month-to-month fluctuations.

• Green power incentives - Some utilities give discounts for choosing renewable energy sources.

• Loyalty discounts - You may get a lower rate if you choose to buy electricity from the same company long-term.

Contact your electric provider to see what money-saving plans are available in your area.

Audit Your Household Energy Use

The first step to savings is identifying where you use the most electricity:

• Use an energy monitor to see how much power devices and appliances draw. Identify energy hogs for replacement.

• Conduct an energy audit to find leaks, poor insulation, and other efficiency issues. Many utilities offer free audits.

• Review your bills to see if usage spikes during certain times of day or months. Track over time to find trends.

• Check your meter frequently to get real-time feedback on how daily habits affect energy use.

Adjusting your energy use based on this data can reveal simple ways to slash your electric bill.

Unplug Devices and Electronics

Many devices still draw a small standby current when plugged in, even if switched “off.” These vampire loads add up:

• Use power strips to easily disconnect electronics like TVs, cable boxes, and game consoles when not in use.

• Unplug chargers when not charging devices. Chargers still use energy when idle.

• Disable wi-fi and bluetooth on devices when not needed to limit vampire loads.

• Unplug unused appliances like old fridges and second fridges. They use energy continuously.

Being vigilant about unplugging devices not in use can shave dollars off your bill each month.

Use Electricity at Off-Peak Times

The time of day you perform certain tasks can affect electricity costs:

• Run dishwashers, washing machines, etc. late at night to take advantage of lower electricity rates during off-peak hours.

• Cook, charge devices, and shower in the morning or evening. Limit use during hot afternoons when AC is needed most.

• Adjust your thermostat to minimize AC usage during the hottest parts of peak rate periods.

• Turn off unnecessary lights and devices in the afternoon when rates are highest.

Shifting some of your high-demand electric tasks to mornings and nights can maximize savings.

Change Light Bulbs

Replacing outdated light bulbs is one of the fastest ways to reduce electric bills:

• Swap incandescent bulbs for LEDs that use at least 75% less energy. They also last years longer.

• Use fluorescent lighting in garages, basements, and workshops. Fluorescents last 10-20 times longer than incandescents.

• Install fixtures with electronic ballasts to boost efficiency of fluorescent lighting even further.

• Use natural light whenever possible and turn off lights when leaving a room to conserve electricity.

Over time, simply switching light bulb types will lead to noticeable electric bill savings.

Take Advantage of Smart Home Tech

Smart home devices allow you to effortlessly optimize energy efficiency:

• Smart thermostats conveniently adjust temperatures when you are away to reduce HVAC costs.

• Smart plugs let you turn off electronics remotely to reduce phantom loads.

• Smart switches turn lights on/off on schedules or occupancy sensors to prevent waste.

• Smart monitors track real-time energy usage to identify savings opportunities.

Today’s affordable smart home tech pays for itself quickly in energy savings.

Improve Your Home's Efficiency

While not free, some upgrades can dramatically improve your home's energy efficiency:

• Seal air leaks around doors and windows to prevent cooled/heated air from escaping.

• Increase insulation levels in attics, basements, and walls to reduce heat transfer.

• Upgrade to energy efficient windows if yours are old or single-paned.

• Have your HVAC system tuned yearly to keep it running at max efficiency.

• Upgrade to ENERGY STAR® appliances when replacing old or broken models.

The upfront investment in these upgrades pays off over time in energy bill savings.

With some awareness and changes to your home and habits, you can painlessly shrink your monthly electric bill. Follow these overlooked tips to maximize savings. Consistently monitoring your electric use as you implement changes helps ensure your efforts are effective. A few simple daily habits can lead to hundreds of dollars in savings each year.