Lower Your Energy Bill: A Practical Checklist

Energy-saving advice tends to come in two flavors: tips so small they barely register (“unplug your phone charger”) and projects so large they need a loan (“replace your HVAC system”). The useful middle ground — the changes that are cheap, quick and actually show up on a bill — gets lost between them.

This checklist works through that middle ground in order of where your money goes. Every figure here comes from the U.S. Department of Energy, ENERGY STAR or the U.S. Energy Information Administration, linked where it appears. Your savings will depend on your climate, your home and your habits, so treat the numbers as “up to” estimates from those agencies, not promises. It is the same evidence-first approach we use across HomePlusDeals.Com.

Where your energy actually goes

Start with the big picture, because it tells you where effort pays off. According to the EIA’s breakdown of home energy use, space heating and air conditioning together made up 52% of a typical US household’s annual energy consumption in 2020. Water heating, lighting and refrigeration together accounted for another 25%, and everything else — TVs, cooking, laundry, electronics — the remaining 23%.

Looking only at electricity, the EIA’s electricity use in homes page lists the three largest end uses in 2020 as air conditioning (19%), space heating (12%) and water heating (12%).

The lesson: heating, cooling and hot water deserve most of your attention. Lighting and gadgets are worth fixing because they are easy, not because they are large.

1. Thermostat settings

The DOE’s Energy Saver guide states that you can save as much as 10% a year on heating and cooling by turning your thermostat down 7–10°F for 8 hours a day in the fall and winter, and turning it up in the spring and summer. The easiest eight hours are usually overnight or while everyone is at work.

• Set a lower heating temperature for sleep and while the house is empty.
• Set a higher cooling temperature while away in summer.
• Set the fan to “Auto” rather than “On”, as the DOE guide advises, unless a professional has set it to run continuously for air quality reasons.
• Heat pump owners: the same guide warns not to use deep setbacks without a smart or programmable thermostat designed for heat pumps, because a large recovery can trigger expensive backup heat.

A programmable or smart thermostat makes this automatic. ENERGY STAR’s smart thermostat FAQ puts average savings for certified models at approximately 8% of heating and cooling bills, or about $50 a year. Our smart thermostat buying guide covers wiring checks and heat pump settings before you buy.

2. Seal the air leaks

The DOE guide calls air leaks among the greatest sources of energy loss in a home, and says sealing uncontrolled air leaks can save 10–20% on heating and cooling bills. ENERGY STAR’s seal and insulate program says sealing and insulating can provide up to 10% savings on annual energy bills.

Most of the work is a weekend with caulk and weatherstripping:

• Weatherstrip exterior doors; add a door sweep if you can see daylight underneath.
• Caulk gaps around window trim, baseboards on exterior walls and where pipes or cables pass through walls.
• Fit foam gaskets behind outlet and switch plates on exterior walls.
• Seal the attic hatch or stair opening; the DOE suggests an insulated box over leaky attic stairs.
• Check attic insulation once air sealing is done.

A caulk gun and a utility knife are all you need for most of this; both are on our essential DIY tool kit list. Be careful not to seal a bathroom so tightly that moisture has nowhere to go — an exhaust fan matters even more in a tight house, as covered in our guide to bathroom ventilation and mold.

3. Water heater at 120°F

The DOE guide says water heating is the second-largest energy expense in your home, typically about 18% of your energy use. It recommends setting the water heater to 120°F, a temperature it considers safe for most of the population.

• Check the setting, or measure at the tap farthest from the heater with a thermometer.
• Lower it to 120°F unless your dishwasher manual says it needs hotter water. The DOE notes that if your dishwasher has an internal booster heater, 120°F is usually fine.
• If the tank is warm to the touch, insulate it; the DOE guide puts this at 7–16% of water heating costs annually. Follow the manufacturer’s instructions, especially on gas heaters.
• Insulate accessible hot water pipes for another 3–4% a year, per the same guide.
• Fix dripping hot water taps and install low-flow showerheads and aerators.

Note: if anyone in the household has a weakened immune system, ask a doctor or plumber about the right setting before lowering it.

4. Switch to LED lighting

The DOE guide says one ENERGY STAR certified LED bulb uses up to 90% less energy than an old incandescent and can save about $55 in electricity over its lifetime, while lasting 15–25 times longer. ENERGY STAR’s LED lighting page notes that incandescent bulbs release 90% of their energy as heat.

• Replace any remaining incandescent or halogen bulbs, starting with the ones that are on the longest each day.
• Look for the ENERGY STAR label, which means the bulb has been independently certified.
• Choose the right color temperature and brightness for each room. Our living room lighting guide explains lumens and Kelvin so the new bulbs look right.
• Add timers, motion sensors or smart controls to outdoor and closet lights.

5. Kill the phantom loads

Many electronics keep drawing power when switched off. The DOE guide says this standby power could add an extra 5–10% to your monthly utility bill.

• Plug your TV, streaming box, game console and soundbar into an advanced power strip, which cuts power to accessories when the main device is off.
• Unplug chargers once devices are charged.
• Turn off or unplug rarely used equipment: a spare fridge in the garage, an old printer, a second TV.
• Use a smart plug with energy monitoring to find the worst offenders. Our smart home starter kit covers choosing one.

6. Use appliances smarter

• Laundry: the DOE guide says most of the energy used by clothes washers goes to heating water, and switching from hot to warm water can cut a load’s energy use in half; cold water saves more. Wash full loads.
• Dishwasher: run full loads and let dishes air dry instead of using the heated dry setting.
• Dryer: clean the lint filter every load, and clean the vent duct at least once a year.
• Fridge: vacuum the condenser coils and check door seals close tightly.
• Summer: close blinds on sun-facing windows during the day to keep heat out.

Several of these overlap with good cleaning habits. Our house cleaning schedule puts coil cleaning and dryer vent cleaning on a seasonal rotation so they are not forgotten.

7. Claim rebates before you buy

Be aware that the federal tax credits many older guides mention have ended. ENERGY STAR’s federal tax credits page states that the energy efficient home improvement credit and the residential clean energy credit were available through December 31, 2025.

Money is still available from other sources:

• Search your ZIP code in the ENERGY STAR Rebate Finder for utility and local rebates on thermostats, heat pumps, water heaters and appliances.
• Check your state’s status in the DOE Home Energy Rebates program, which is run by states, territories and tribes.
• Ask your utility about free or discounted home energy audits, and about refrigerator recycling programs.
• Keep receipts and model numbers; many rebates require proof of purchase. If a new appliance fails early, our product warranty rights guide explains what you are owed.

Which upgrades pay back fastest

There is no universal payback figure, because it depends on your energy prices, climate and how you use your home. But the agencies’ figures above suggest a clear order: free changes first, cheap materials next, big equipment last.

The pattern is consistent: behavior changes and envelope fixes beat gadgets. Do the free and cheap items first, then use rebates to fund the bigger equipment when the old unit wears out.

Quick checklist

1. Set back the thermostat 7–10°F for 8 hours a day (shallower on heat pumps).
2. Seal air leaks around doors, windows, outlets and the attic hatch.
3. Set the water heater to 120°F and insulate a warm tank and pipes.
4. Swap any remaining incandescent bulbs for ENERGY STAR LEDs.
5. Put entertainment centers on advanced power strips.
6. Wash in cold or warm water, and air-dry dishes.
7. Clean dryer vents and fridge coils.
8. Check the ENERGY STAR Rebate Finder and your state’s rebate program before buying equipment.

Start with the free steps this week. For more ways to run your home for less, browse the household tips category on HomePlusDeals.Com.