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Utility bills are one of those household expenses that can quietly add up. Electricity, heating, cooling, and other everyday energy costs may fluctuate throughout the year, and even small increases can have a large impact on your monthly budget.
If you’re looking for ways to lower your energy bills, there are a few strategic changes that could help make your home more energy-efficient and save you money.
An energy audit can help identify areas of your home that may be using more energy than necessary. During an audit, a professional inspector will check for air leaks and evaluate your insulation, heating and cooling systems, and appliances to find potential ways to improve the energy efficiency of your home. Additionally, an inspection could also improve your safety and comfort, as it can shine a light on poor air quality, mold, or even carbon monoxide risks.
Costs of an energy audit can vary widely depending on factors like the provider, size of your home, and level of audit. As a starting point, you may want to reach out to your utility company, as many will perform a home energy assessment for free or at a reduced cost.
Bottom line: Knowing where to begin is half the battle when it comes to making energy-efficient home upgrades. With an energy audit acting as a roadmap, you can eliminate the guesswork. Instead of investing money in home improvements that have little impact, you can focus on those that can potentially reduce your energy bill, helping you save anywhere from 5% to 30% a month.
Finally working on that kitchen remodel? In between picking out countertops and comparing paint samples, you might want to consider upgrading older appliances to an ENERGY STAR-certified model. These appliances meet strict guidelines set by the US government to help reduce environmental impact by cutting down on energy usage.
While ENERGY STAR products can help the average homeowner save about $450 annually, it doesn’t mean you should rush to replace every appliance right away. Instead, try comparing a product’s estimated energy use along with the purchase price and anticipated lifespan so you can accurately determine if the appliance is worth the investment.
Bottom line: Major appliances can remain in your home for years, so improvements in energy efficiency may translate into long-term savings. Choosing a product that requires less electricity can be a simple way to reduce your home’s energy use without having to change your day-to-day routine.
Imagine you’re preparing for a long weekend away, and you’re walking through the house to turn off a few electronics before you head out.
While they may appear to be off, they could still be drawing electricity. This standby energy use is sometimes referred to as “vampire” power and can come from televisions, cable boxes, coffee makers, chargers, and other electronics that remain plugged in throughout the day.
Being mindful doesn’t mean you have to disconnect every device one by one each time you’re leaving home for an extended period. For instance, consider connecting groups of electronics to a power strip (only if it’s safe to do so) that can be switched off when they aren’t being used.
Bottom line: Cutting down on standby power doesn’t require a big change or major purchase. By unplugging vampire appliances whenever you can, you could cut down on your energy use by roughly 5% to 10% according to Duke Energy.
Your heating and cooling system relies on air filters to capture dust, dirt, and other debris. As those filters become clogged, it may become more difficult for air to move through the system efficiently. This can cause your HVAC system to work harder to maintain a comfortable indoor temperature, leading to increased energy use and a more expensive monthly bill.
Depending on your HVAC system, filter type, and home, you should aim to change your filter roughly every 30 to 90 days.
It’s not always easy to stay on top of a maintenance chore like this, especially when life gets busy. You might consider adding a calendar reminder or even making it part of your seasonal maintenance routine.
Bottom line: When a dirty filter restricts airflow, your HVAC equipment has to work harder to maintain the temperature you’ve set. Replacing a filter is a low-cost way to help keep one of your home’s biggest energy users running properly.
If you’re someone who spends a significant amount of time away from home, whether for work or travel, then you might want to consider investing in a smart thermostat to automatically adjust your home’s temperature.
For example, a smart thermostat can be programmed to use less heating or cooling the next time you’re at an all-day company retreat and will set back to a comfortable temperature just before you get home.
Bottom line: Heating and cooling makes up the bulk of an average household’s utility bill. And if you’re away for large portions of the day, you don’t want to waste energy heating or cooling an empty house. Instead of having to manually adjust your home’s temperature before you leave or when you return, a smart thermostat does the work for you, so that’s one less thing to have to think about.
When heated or cooled air stays inside, your HVAC system won’t have to work as hard to maintain a comfortable indoor temperature. Small gaps around windows, exterior doors, and other openings can make rooms feel drafty and force your heating or cooling system to overcompensate.
Check around window frames and doorways for visible gaps or places where you notice drafts. Depending on the extent of the problem, inexpensive materials such as caulk or weatherstripping can help create a tighter seal.
Bottom line: Sealing air leaks can help improve both comfort and energy efficiency, especially in older homes where gaps may have developed over time.
Lowering your energy bill doesn’t always require big changes, and you don’t have to tackle every potential improvement at once. Consider starting with one or two changes that make sense for your home, your budget, and where you live. Any potential savings you may find can then be redirected to your other financial goals.
This article is for informational purposes only and is not a substitute for individualized professional advice. Articles on this website were commissioned and approved by Marcus by Goldman Sachs®, but may not reflect the institutional opinions of The Goldman Sachs Group, Inc., Goldman Sachs Bank USA, Goldman Sachs & Co. LLC or any of their affiliates, subsidiaries or divisions. Information and opinions expressed in this article are as of the date of this material only and subject to change without notice. You are not permitted to publish, transmit, or otherwise reproduce this information, in whole or in part, in any format without the express written consent of Goldman Sachs. This foregoing restriction includes, without limitation, using, extracting, downloading or retrieving this information, in whole or in part, to train or finetune a machine learning or artificial intelligence system.
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