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Soaring utility bills? These 8 smart moves cool your home and costs
Michael Kurko August 26, 2025 at 10:18 PM
Soaring utility bills? These 8 smart moves cool your home and costs (skynesher via Getty Images)
This summer has turned out to be one of the hottest on record, with many states enduring an unprecedented string of triple-digit days. And with record heat waves come record electricity bills as A/Cs and fans run non-stop.
The average household will spend about $784 on electricity from June through September — roughly $196 per month. That's the steepest seasonal bill increase in 12 years, putting strain on households already struggling with higher prices for food, gas and housing.
The good news? There are simple moves you can take right now to cut costs without sacrificing comfort. Here are some of the most effective ways to lower your utility bills and home temperature this summer.
1. Tighten up your home
Nearly half of the average household's energy use goes toward heating and cooling. The culprit? Gaps around doors and windows that force your A/C to work harder and spike your bill.
Fortunately, there are simple ways to stop your home from cooling the outdoors. By sealing these problem areas with caulking or weatherstripping, you can reduce your bill by 10% to 20%. Even placing a draft stopper at the base of your outside door helps. If it's in your budget, upgrade your attic insulation or seal ductwork for more long-term savings.
Learn more: Winding down summer? 6 affordable Costco upgrades you can DIY this weekend
2. Train your thermostat
When the worst of the summer heat comes knocking, it's tempting to crank your A/C until you see your breath. Instead, set your thermostat back 7° to 10°F for at least eight hours a day. You'll cut your annual heating and cooling bills by up to 10%.
Consider installing a programmable or smart thermostat if you don't already have one to automatically adjust temperatures during these times.
Ceiling fans are another cost-effective ally, since they use about 10% of the energy of central air conditioning and can make a room feel up to 10 degrees cooler.
3. Pull the plug on "phantom power"
Did you know some electronic devices continue to use electricity when they're off? Many have a standby mode that can account for up to 10% of your energy bill. Common culprits include TVs, phone chargers, game consoles, streaming devices, and even coffee makers with digital clocks.
Put an end to these "phantom loads" by plugging your electronics into a power strip with a switch or just unplugging them when they're not in use. This small habit can save $100 or more each year without changing your lifestyle.
Learn more: 20+ clever ways to save money
4. Cool your hot water use
Your A/C isn't the only appliance driving up your electric bill — heating water is the second-largest household energy expense. If your water heater is set to 140°F, lowering it to 120°F could save you up to $400 a year.
It's also a good idea to check for leaks around faucets, toilets, or even your dishwasher. Just a single dripping faucet wastes over 3,000 gallons of water a year.
Your laundry room is another place you can save. Almost 90% of the energy your washer uses goes toward heating water. Just switching from hot to warm water, you can cut your energy use in half. Dialing it down to cold can save even more. Cold water is also gentler on fabrics, making your clothes last longer.
5. Make every cycle count
Modern appliances are built to do more with less. Energy Star dishwashers, for example, use only six gallons of water per wash compared to 16 gallons used by older models. If you want to save even more, run your dishwasher or washing machine with a full load instead of a handful of items. You'll use those appliances less, saving water and money.
Moving back to the laundry room, let's tackle one of your home's biggest energy hogs: the dryer. To use your dryer less often, air-dry clothes whenever possible. And if you have a newer dryer, use the moisture sensor function, which will shut off the machine when your clothes are dry.
6. Shift energy use to cheaper hours
Most electric companies offer lower rates during their "off-peak" hours. By saving your most energy-intensive tasks—like doing laundry or running the dishwasher — during those times, you'll pay less and lower your bill.
Off-peak hours tend to be early morning or late evening when customers are using the least amount of electricity, so this is a great way to save if you're an early bird or night owl.
7. Unlock savings with a call
Did you know that a simple phone call can lower your utility bills? Just a five-minute chat with your electric, water, or gas company can help you find billing errors, promotional discounts, or payment plans that will fit your usage.
If you're facing financial hardship, you may also be able to take advantage of state and federal programs that provide bill assistance. For example, eligible New Jersey residents can receive seven $25 credits for a total of $175 towards their utility bills through the state's Residential Energy Assistance Payment (REAP) program.
Learn more: How to build an emergency fund
8. Build everyday energy-saving habits
Made all the changes on this list, and hungry for more savings? Try changing your habits. Just a few tweaks to your daily routines can inch your utility bills down even more.
For example, closing your curtains during the hottest time of day will keep your house cooler without having to crank your A/C. (Spoiler: heavy drapes will also keep heat from escaping through your windows in the winter).
And we hate to say it, but your parents were right: turning off lights when you leave a room and keeping doors closed in unused rooms can also boost your savings.
Finally, while you're on the phone with your utility company looking for savings, ask about free or discounted energy-saving devices. These can include LED bulbs, faucet aerators, smart plugs, and low-flow shower heads. Or check your provider's website for offers.
Learn more: 5 popular budgeting strategies — and how to find the best fit for financial motivation
Bottom line: Keep cool while cutting costs
Just because your utility bill is on the rise doesn't mean you're powerless. From sealing leaks to using your appliances wisely, you can trim hundreds of dollars off your utility bills every year.
The best part? None of this requires major life changes. Just a few simple hacks that will let you keep more cash for things you actually enjoy.
More stories about managing your home -
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What not to fix when selling a home: 7 updates to skip
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Thinking of downsizing? Here's how you can use your home equity to make it happen
📩 Have thoughts or comments about this story — or ideas on topics you'd like us to cover? Reach out to our team.
Source: "AOL Money"
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