Electricity savings come from using less power when you can, and using it more efficiently when you have to

Saving electricity means reducing the amount of power your home draws from the grid. This happens in two ways: turning things off when you are not using them, and choosing devices that do the same job while drawing less power. A device that uses less power costs less to run, and your monthly bill reflects the total power all your devices used added together.

The most straightforward way to save is to stop running devices you do not need. The second is to replace old devices with newer ones that do the same work using less electricity. Both approaches lower your bill, but they work on different timescales — turning things off saves money when ready, while replacing a device saves money over months or years.

Key Takeaways

  • Turning off lights, computers, and appliances when you leave a room saves electricity when ready and costs nothing.
  • Devices left plugged in but powered down still draw small amounts of power, called phantom load, which adds up across many devices.
  • Replacing old refrigerators, water heaters, and air conditioning units with newer models can cut electricity use by 20 to 40 percent for those specific appliances.
  • LED light bulbs use about 75 percent less electricity than incandescent bulbs and last much longer, so the cost difference pays back within months.
  • Adjusting your thermostat by a few degrees and using fans instead of air conditioning in mild weather reduces electricity use without major expense or effort.

What phantom load is and why it matters

Phantom load, also called standby power, is the electricity a device uses when it is plugged in but turned off or in sleep mode. Phone chargers, computer monitors, televisions, and microwave ovens all draw power this way. Individually, each device uses very little — often less than a watt — but a typical home has dozens of devices plugged in at once.

Across a year, phantom load can account for 5 to 10 percent of a home's total electricity use. You reduce it by unplugging devices you do not use regularly, or by plugging multiple devices into a power strip and turning the strip off when you are done. This is most effective for entertainment systems, computer setups, and kitchen appliances you do not use every day.

How to choose appliances that use less electricity

When you replace an appliance, look for the EnergyGuide label, a yellow and black sticker required on most major appliances in the United States. It shows the estimated yearly electricity cost for that model, and lets you compare it directly to similar models. A refrigerator labeled at $80 per year uses less electricity than one labeled at $120 per year, even if they look the same size.

The ENERGY STAR label means the device meets efficiency standards set by the U.S. Environmental Protection Agency. ENERGY STAR appliances typically cost more upfront but use 10 to 50 percent less electricity depending on the type. For appliances you run constantly — refrigerators, water heaters, air conditioning units — the lower operating cost usually pays back the higher purchase price within three to seven years.

Refrigerators, clothes dryers, water heaters, and air conditioning systems account for the largest share of home electricity use. Replacing any of these with a newer model usually saves the most money. Washing machines and dishwashers save less total electricity but still reduce consumption noticeably.

Lighting changes that save the most electricity

LED bulbs use about 75 percent less electricity than the older incandescent bulbs they replace, and they last 15 to 25 times longer. A single LED bulb that costs $3 to $5 will save you $10 to $15 in electricity over its lifetime compared to incandescent bulbs in the same fixture. Switching all the lights in a typical home to LED reduces lighting electricity use by roughly 80 percent.

The second step is to turn lights off when you leave a room. This sounds obvious but is straightforward to forget, especially in hallways, bathrooms, and closets where people spend only a few minutes. Motion-sensor switches turn lights off automatically after a set time, which works well in spaces like garages and laundry rooms where you have your hands full.

Heating and cooling adjustments that reduce bills

Your thermostat controls the largest single use of electricity in most homes. Lowering the temperature by 7 to 10 degrees for eight hours a day — such as when you sleep or are away — can reduce heating costs by 10 to 15 percent. In summer, raising the temperature by the same amount reduces air conditioning costs by a similar amount. A programmable or smart thermostat makes these changes automatically, so you do not have to remember.

Using a fan instead of air conditioning when the outdoor temperature is mild saves significant electricity. Fans use about one-tenth the power of an air conditioning unit. In spring and fall, or on cool mornings and evenings, opening windows and running a fan can keep your home comfortable without running the air conditioner.

Closing doors to unused rooms and closing vents in those rooms prevents your heating or cooling system from conditioning space you do not occupy. Keeping curtains or blinds closed on sunny windows in summer reduces the heat that enters your home, so your air conditioning does not have to work as hard.

Water heating and hot water use

Water heaters are the second-largest electricity user in most homes. Lowering the temperature setting from 140 degrees Fahrenheit to 120 degrees saves electricity and reduces the risk of scalding. You will not notice the difference in comfort, but the savings add up over the year.

Taking shorter showers and using cold water for laundry when possible reduces the amount of hot water your system has to heat. Washing clothes in cold water works well for most loads and saves electricity without any change to how clean your clothes get. Insulating the pipes that carry hot water from your water heater to your faucets reduces heat loss and gets hot water to you faster.

Frequently Asked Questions

Does turning off lights really save much electricity?

Yes, especially if you replace them with LED bulbs first. A single incandescent bulb left on for eight hours a day costs about $10 to $15 per year in electricity. LED bulbs in the same fixture cost about $2 to $3 per year. Turning off lights in rooms you are not using saves money when ready.

Is it better to leave devices on or turn them off and back on?

Turn them off. The myth that turning devices on and off uses more electricity than leaving them running is false for modern electronics. Turning off a computer, television, or light saves electricity every minute it is off, with no penalty for switching it on again.

How much does it cost to run a device that uses one watt?

A device using one watt continuously for a year costs roughly $0.10 to $0.15 in electricity, depending on your local rates. Phantom load devices typically use 0.5 to 2 watts each, so unplugging ten devices saves $0.50 to $3 per year. The savings are small per device but add up when you unplug many things.

Will a smart power strip actually save money?

Smart power strips save money if you use them to cut phantom load from devices you do not use daily, like entertainment systems or guest room equipment. They save less money on devices you use constantly. A basic power strip costs $10 to $20 and pays for itself within one to two years if it controls five or more devices.

What is the fastest way to lower my electricity bill?

Replacing incandescent bulbs with LED bulbs and adjusting your thermostat settings are the fastest changes with no upfront cost or minimal cost. Unplugging phantom load devices and turning off lights when you leave rooms saves money when ready. Replacing old appliances saves the most total electricity but takes longer to pay back.