Energy Bills at Home: The Habits That Move the Needle

Smart Money Basics Editorial Team Staff Writer · Jul 14, 2023 · 7 min read

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Not all energy-saving advice is equal. These are the household habits that consistently make a measurable difference to electricity and gas costs.

Key Takeaways

Heating and cooling account for nearly half of a typical US home's energy use — making thermostat habits especially impactful.
Phantom load (energy drawn by plugged-in devices when idle) can add a meaningful amount to monthly bills.
Water heating is the second-largest energy cost in most homes and responds well to simple behavioral changes.
Consistent small habits — not one-time fixes — produce the most durable reductions in energy costs.
Understanding your bill's structure helps you identify which habits will have the greatest personal impact.

Why Habits Matter More Than Upgrades

Most households think about energy savings in terms of equipment — a new furnace, smarter appliances, better insulation. Those investments matter, but they have a ceiling: once installed, they deliver only as much benefit as your daily behavior allows. The habits you form around temperature, appliances, and water use determine whether your home runs at the low end or the high end of its energy range every single month.

According to the U.S. Department of Energy, heating and cooling together account for roughly 43% of a typical home's energy costs. That makes your thermostat the single most influential dial in the house. A few degrees of consistent adjustment — particularly overnight and when the home is empty — can meaningfully reduce those costs without requiring any hardware change at all.

For a complete picture of where savings opportunities exist throughout the year, see our year-round energy savings roadmap. This article focuses specifically on the daily habits that move the needle most reliably.

Set your thermostat 7–10°F lower while you sleep or are away from home.

The U.S. Department of Energy estimates this adjustment can save up to 10% annually on heating and cooling costs. Because HVAC is the largest single energy expense, even modest thermostat discipline compounds quickly over a year.

Example: A household that sets its thermostat to 68°F during the day and 60°F overnight during winter — rather than holding a steady 70°F — may see a noticeable drop in monthly heating costs within the first billing cycle.

Unplug or power-strip electronics that draw phantom load when not in use.

Devices in standby mode — TVs, game consoles, cable boxes, chargers — continue drawing power even when idle. The Lawrence Berkeley National Laboratory has estimated that standby power can account for 5–10% of residential electricity use.

Example: Connecting your entertainment center to a single power strip and switching it off at bedtime eliminates standby draw from multiple devices simultaneously, requiring almost no ongoing effort.

Wash laundry in cold water as the default setting.

Heating water accounts for about 90% of the energy a washing machine uses per cycle. Switching to cold water for most loads eliminates that heating cost while modern detergents are formulated to clean effectively at lower temperatures.

Example: A household running four loads of laundry per week could significantly reduce annual electricity consumption simply by selecting cold over hot — with no change in cleaning results for everyday clothing.

Lower your water heater thermostat to 120°F.

Water heating is the second-largest energy expense in most US homes, and many water heaters ship from the factory set to 140°F — higher than necessary for daily use. Reducing the setpoint to 120°F cuts heat loss and the energy needed to maintain tank temperature. For more on this cost category, see our water heating cost guide.

Example: Turning down the water heater dial takes under a minute and requires no tools on most units — yet it permanently reduces the energy the heater expends keeping water hot around the clock.

Run dishwashers and dryers during off-peak hours if your utility uses time-of-use pricing.

Many utilities charge higher rates during peak demand windows — typically late afternoon through early evening. Shifting high-draw appliance use to mornings, late nights, or weekends can reduce the cost of those cycles without reducing usage.

Example: Setting the dishwasher to a delay-start cycle so it runs after 9 p.m. is a one-time configuration that automatically captures lower rates on every subsequent use.

Keep heating and cooling vents clear and change air filters on schedule.

Blocked vents force HVAC systems to work harder to circulate conditioned air, increasing run time and energy use. Clogged filters compound this by reducing airflow efficiency. Staying on a regular filter-change schedule — typically every one to three months depending on filter type and household — helps the system operate as designed.

Example: Moving a piece of furniture that was blocking a floor vent, combined with a fresh filter, can visibly reduce how long the HVAC system runs per cycle in affected rooms.

The Habits That Consistently Deliver Results

Not every energy tip you've heard carries equal weight. Some popular advice — like turning off a single light — has minimal measurable impact. Others, applied consistently, can reduce annual bills by hundreds of dollars. The practices below focus on the categories where behavior change has the most leverage.

If you want to understand how these habits show up in your actual bill, reading your utility bill carefully is a useful companion step — it helps you confirm which areas in your home are most wasteful before you invest effort in changing them.

~43%

Share of home energy used for heating and cooling

According to the U.S. Department of Energy, space conditioning represents the largest single category of home energy expenditure for most American households.

5–10%

Household electricity consumed by standby devices

Research from the Lawrence Berkeley National Laboratory estimates that always-on and standby power draw accounts for a significant share of residential electricity use.

~18%

Share of home energy used for water heating

The U.S. Department of Energy identifies water heating as the second-largest energy expense in most American homes, after space conditioning.

Getting Started Without Overhauling Your Routine

The barrier to energy-saving habits is usually inertia, not complexity. Most of the highest-impact actions take only a few minutes to set up and then run on autopilot. Scheduling your thermostat, adjusting your water heater temperature, and auditing your standby devices are all tasks you can complete in a single afternoon.

For households looking for affordable first steps that don't require purchasing new equipment, the low-cost energy efficiency guide covers practical actions that cost little or nothing. And for a room-by-room breakdown of where energy is actually consumed in your home, energy-efficient practices for every room offers targeted guidance that complements the habit-level approach here.

high Check your water heater's temperature dial today and turn it down to 120°F if it's set higher.

medium Plug your TV, streaming devices, and gaming console into one power strip and switch it off tonight before bed.

high Change your washing machine's default temperature setting to cold water for all regular loads.

high Review your current thermostat schedule and add a setback of at least 7°F for overnight hours.

medium Check every HVAC vent in your home to confirm none are blocked by furniture, rugs, or curtains.

This article is for general informational purposes only and does not constitute personalized financial or energy-use advice. Results vary by home size, climate, utility rates, and individual usage patterns. Consult your utility provider or a qualified energy auditor for guidance specific to your situation.

Smart Money Basics Editorial Team

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