How to Lower Your Electric Bill

Rising energy costs may have you thinking about how to lower your electric bill. According to the U.S. Energy Information Administration (EIA), the average U.S. residential electricity price rose from 13.15¢ per kWh in 2020 to 15.96¢ per kWh in 2024 — a 21 % jump. It only makes sense that people are looking for ways to cut those costs. Luckily, there are several ways you can reduce energy costs. Read on for our top five tips.

1. Shop around for an electricity supplier

If you’re looking for answers to the question, “How can I lower my electric bill?” start by picking a competitive energy provider. If you live in an energy choice state, you can switch from the utility company to other suppliers in a competitive marketplace. As of 2025, 18 states and the District of Columbia allow residential retail electricity choice, while several others use a similar community‑choice aggregation program.

Energy deregulation has created a competitive electricity market, offering consumers more choice and improved service. The utility company manages the delivery of power to your home, but you can contract with energy suppliers that generate the power and offer choices in home energy plans.

When figuring out how to choose an energy supplier, research each company’s reputation for service and dependability. Look at their plans and options. Then compare the length of the contract and the rate. Constellation offers many plans that can fit your lifestyle to potentially help you save money.

The best time to switch energy plans is during times of the year when energy usage is low. Off-peak seasons are usually Fall and Spring, when the weather is mild. When you’re blasting heat in the winter or cranking up the air conditioning in summer, demand for power is higher, and the rates go up. Explore when electricity rates are lowest so that you can lock in the best rate when you switch.

2. Switch from variable- to fixed-supply energy rates

Switching to a fixed rate is a popular way to lower your electricity bill. With a variable rate, you pay the market price for electricity, which can change monthly. The other option is to lock in a fixed rate for the length of your plan’s contract, which protects you from rate increases and gives you a more predictable way to budget energy expenses.

3. Switch to a time-of-use plan

If you can schedule your high-energy consumption tasks to times of the day when electricity demand is low, you can often trim costs with a time-of-use electricity plan. These charge different rates for electricity depending on the time of day, called peak and off-peak hours.

Demand is typically high during the middle of the day and low during the middle of the night. You can take advantage of lower rates by running your dishwasher and washing machine at night. You can also cool your home during the hours before dawn, then shut off your air conditioner until the house gets hot later in the day, saving hours of air conditioner operation during peak hours.

If you can’t control when you operate high-energy appliances, you may not benefit much from this type of plan.

4. Double down on energy efficiency solutions

Once you have a provider and a plan, the next step is to be more efficient and cut waste. With the rise of remote and hybrid work, home energy consumption has increased during what were traditionally off-peak hours. That means it's more important than ever to be intentional about your daily habits and energy choices. Here are some home energy savings tips to lower your electric bill:

• Turn off lights and unplug devices when not in use, so that they are not using energy when idle.
• Save energy on laundry by only running your washer and dryer for full loads.
• Fully load your energy-efficient dishwasher before running it.
• Check seals on windows, doors, and appliances, and add weatherstripping to gaps to prevent warm or cool air from leaking out.
• Fix leaky ductwork to make sure that your systems are efficient in distributing heat or cool air.
• Adjust your thermostat. Raising it a few degrees in summer and lowering it a few degrees in winter could save power without affecting your comfort.
• Adjust your fridge and freezer temperature so that it keeps your food fresh without wasting energy.
• Keep your fridge and freezer full, as crowded spaces are more efficient in maintaining the cold temperature.
• Adjust the temperature on your water heater so that you’re not wasting energy heating water that you don’t use right away.
• Install ceiling fans to circulate cool air down into the room during summer, and push warm air down into the room during the winter.
• Install an attic fan to vent out heat and give your air conditioner a break.
• Use window coverings to add insulation and block the heat of the sun during summer.
• Leverage off-peak energy hours, when electricity rates may be lower, to run power-hungry appliances.
• Use energy-efficient appliances to minimize the electricity needed for them to function. Look for appliances that meet or exceed the latest ENERGY STAR® certification standards, which are updated regularly to reflect technological improvements and stricter efficiency benchmarks.
• Swap out your old CFL light bulbs for LED bulbs that use a fraction of what incandescent bulbs burn.
• Install dimmer switches so that you can cut brightness and save power.
• Use smart home devices and smart power strips that help to optimize lights and appliances.
• Conduct a home energy audit to find ways you can improve the efficiency of your home.
• Get routine HVAC maintenance to keep your systems running efficiently, and change your air filters regularly so your unit will not have to work as hard to push out cool or warm air.

5. Tailor your energy habits to where you live

The climate and seasonal weather influence how much energy you use to heat and cool your home. If you tailor your energy usage habits to local conditions, you may be able to noticeably lower your electric bill by reducing how much energy you consume.

• Hot, humid climates: Efficient cooling habits will give your air conditioner a little boost. Ceiling fans can circulate cool air. Blocking solar heat with blackout window curtains is also effective. Invest in preventative maintenance for your air conditioner, especially by changing the filter often.
• Cold northern areas: Closing air gaps around windows, doors and utilities, having modern and efficient windows and beefing up your insulation are great ways to keep warm air inside your home. Heavy curtains pulled closed at night will help reduce heat loss.
• Dry, high-altitude regions: Temperature swings can work in your favor. Open windows at night to bring in the cooler air. During the day, close your windows and block the sun to keep your home cool. Insulation can also help regulate the inside temperature. You may consider materials that become a thermal mass, like stone or tile floors, which naturally regulate inside temperatures.
• Seasonal climates: If you live in an area that experiences varying weather by season, you will need to be flexible in your habits, pursuing one strategy in cold weather and another when it is hot. Make sure to service your HVAC systems to keep them running well. Lower your electric bill by following tips for cold areas in the winter and hot areas in the summer.

See if you can save on electricity supply rates with Constellation

With these energy conservation tips, you can take control and possibly reduce your electric bill. Learn more about Constellation and our fixed-rate plans to help you potentially save money.

Electric Bill FAQs

Why is my electric bill so high?

A high electric bill may be due to using more electricity, changes in the season that affect the energy efficiency of your house, appliances that waste energy, inefficient insulation and being hit with spikes in the price of electricity. Don’t forget to look at devices that draw power, even when turned off.

What household appliances use the most electricity?

Power-hungry appliances in most homes are heating and cooling systems, water heaters, washers, dryers and refrigerators. If you have an electric stove, a dishwasher, a big screen television and a gaming system, add them to the list.

What is the lowest possible rate for electricity?

Rates vary by location, time of year, market conditions and whether you live in a deregulated electricity market where companies compete for your business. In a deregulated market, you can shop for rates, types of plans and terms. If you can switch during the Spring or Fall, when temperatures are mild and demand for heating and cooling energy is lower, you may be able to find a lower rate.