10 ways to save energy and lower your bills

Most people think saving energy means turning the heat down and putting on a sweater. In reality, the right combination of habits, small upgrades, and smarter technology can reduce your energy use by hundreds of dollars a year without making your home uncomfortable. And no, it doesn't always require a home renovation or a big budget. Some of the most effective changes cost nothing, and most work whether you rent or own. 

Heating water accounts for about 90% of the energy your clothes washer uses, making temperature one of the smartest dials to turn down. Switching to cold water for most loads cuts significant energy use, saving more than $40 a year for the average household with an electric water heater. Cold water cleans just as effectively for everyday laundry, and the change costs nothing.

A few other habits that add up: run only full loads (washers use roughly the same energy regardless of load size), and dry back to back—the dryer retains heat from the first load, so the second uses less energy to warm up. Also make sure to clean the lint trap before every load. A dryer operating an extra 15 minutes per load can cost you up to $34 a year, not to mention a clean lint trap also reduces fire risk.

If you're replacing a dryer, a heat pump dryer uses about 70% less energy than a conventional dryer—and because it doesn't need an external vent, it's an option for apartments and homes that couldn't previously accommodate a dryer.

If your utility offers time-of-use (TOU) pricing, you pay more for electricity during peak demand hours—typically 4-9 pm on weekdays—and less overnight and on weekends. In California, for example, SCE's standard TOU plan charges about 40% less during off-peak hours than during peak, and the difference is similar across most utilities nationwide. Shifting when you run your energy-hungry appliances—your dishwasher, clothes washer, dryer, and EV charger—to off-peak hours can add up to real savings over the year. 

Check your utility bill or website to see if TOU pricing is available in your area—many utilities are making it the default for residential customers, meaning you may already be on it without realizing it. This tip works equally well for renters and homeowners and costs nothing to act on.

Devices plugged into your wall draw electricity even when they're off—it’s called a phantom load, standby power, or vampire energy. Standby power accounts for 5% to 10% of residential energy use and can cost the average household up to $183 a year for doing basically nothing.

The biggest offenders are TVs, cable boxes, gaming consoles, audio equipment, and phone chargers left plugged in. A smart power strip ($15–$40) cuts power to devices automatically when they're not in use. If you'd rather spend nothing, simply unplugging devices you don't use regularly has the same effect. This tip costs nothing to start and requires no landlord approval, making it a natural first step for renters.

If you still have incandescent bulbs anywhere in your home, swapping them for LEDs is one of the cheapest and fastest-payback energy upgrades available. LED bulbs use up to 90% less energy than incandescent bulbs, last 25 times longer, and the average household saves about $225 a year by making the switch. At $2 to $10 per bulb, most homes can replace all their lighting for well under $200, so the investment pays for itself within the first year. 

LEDs now come in a wide range of color temperatures, so you don't have to sacrifice the lighting feel of your space. And because this tip requires no tools and no landlord approval, it's one of the easiest wins available to renters and homeowners alike.

A smart thermostat automatically adjusts your home's temperature based on your schedule, so you're not heating or cooling an empty house. ENERGY STAR-certified smart thermostats save an average of 8% on heating and cooling bills—roughly $50 a year at average energy costs, with higher savings in homes with older or less efficient HVAC systems.

Most models are straightforward to install yourself, and many utility companies offer rebates that can reduce the $100 to $300 upfront cost. If you rent, check whether your lease allows thermostat replacements—many landlords will agree, especially if you offer to restore the original when you move out.

Even without a smart thermostat, adjusting your temperature settings manually when you leave the house or go to sleep can add up to meaningful savings. According to ENERGY STAR, the average household saves about 8% on heating and cooling just by using a smart thermostat to automate those adjustments.

Air leaks around windows, doors, vents, and electrical outlets let conditioned air escape and outside air seep in, forcing your HVAC system to work harder than it needs to. Sealing those leaks can save an average of 15% on heating and cooling costs, and it doesn’t have to break the bank. With a typical upfront investment of $50 to $200 in weatherstripping, caulk, and foam sealant, this one of the fastest-payback upgrades available and it will make your home much more comfortable.

Focus on doors and windows first, then check electrical outlets on exterior walls and gaps around pipes. Renters can use removable weatherstripping and draft stoppers at door bases without damaging the property—no landlord approval needed in most cases.

Water heating is one of the biggest energy users in a typical home. The simplest free fix: lowering your water heater thermostat from the factory-set 140°F to 120°F can make a real dent in your water heating costs.. Renters can ask their landlord to make this adjustment—it costs nothing and benefits both parties.

Beyond the thermostat, using less hot water—shorter showers, full dishwasher loads, cold-water laundry—reduces how much energy you spend heating it in the first place. If you're replacing your water heater, a heat pump water heater is the highest-impact upgrade. ENERGY STAR-certified models use about 70% less energy and can save a household of four roughly $550 a year compared to a standard electric water heater.

When it's time to replace a major appliance, choosing an energy-efficient model pays off over its lifetime—typically 10 to 20 years. Energy-efficient washing machines, refrigerators, dishwashers, and dryers use less electricity and water than standard models. By choosing ENERGY STAR, a typical household can save about $450 on their energy bills each year. Look for the ENERGY STAR label when shopping, and check with your utility company before buying—many offer rebates for qualifying appliances.

A refrigerator more than 15 years old can use more than three times as much electricity as a modern energy-efficient model, making it one of the highest-return appliance upgrades available. If you rent and don't control your appliances, focus on how you use them: run the dishwasher only when full, wash clothes in cold water, and avoid partial dryer loads.

After sealing air leaks, adding insulation is the next most impactful step you can take to reduce heating and cooling costs. The attic offers the best return because heat rises and escapes through the roof, so adding insulation there directly cuts how hard your HVAC works in both summer and winter. Properly insulating your attic, walls, and floors can save an average of 15% on heating and cooling costs, and the savings compound over time. 

If your home was built before 1980, there's a good chance your insulation is underperforming by modern standards. A home energy audit can identify exactly where you're losing the most energy before you invest, and many utilities offer them for free or at low cost.

Every tip above reduces how much energy you use, but solar takes it a step further by changing where that energy comes from.  With solar panels, you can generate your own clean electricity for free rather than buying it at whatever rate your utility charges. The average homeowner who goes solar with EnergySage saves over $60,550 on energy bills over 25 years.

That said, this is the biggest investment on the list: The average EnergySage customer pays about $31,042 for a rooftop solar system before incentives, with an average payback period of about 10 years. But after that, your panels produce electricity for the remaining life of the system—typically 25 to 30 years—so you’ll pay little to nothing on your electric bills. If the upfront cost of going solar is deterring you, consider a solar lease option that lets you go solar with $0 down and replace your unpredictable utility bills with a predetermined monthly payment. The average energy savings with a lease or power purchase agreement (PPA) is lower than owning your system—closer to $44,500 over 25 years—but that’s still a ton of money saved on electricity.

If you rent or your roof isn't suitable for panels, community solar is the next best option. You subscribe to a share of a local solar farm and receive bill credits—typically at a 5% to 15% discount off your standard utility rate—with no installation, no upfront cost, and no long-term commitment.

Whether you start with a $5 LED bulb or a full solar installation, every step adds up. Compare solar quotes from vetted local installers on the EnergySage Marketplace, or explore community solar if rooftop panels aren't an option for your home.