How to Reduce Your Energy Bill

Choose Texas Power’s guide to lowering your electric bill

Powering your home or business can be pricey, but it shouldn’t break the bank. If your energy bills keep falling outside your budget, it may be time to make some changes.

Our experts recommend three main tactics to lower your energy bill:

1. Adopt more energy-saving habits
2. Switch plans or providers
3. Invest in home upgrades

Understanding your energy costs

The first step to spending less on energy is understanding where your costs come from and how they affect your monthly bill. Sometimes, you may be consuming more electricity than you realize. But other times, you may have a high rate even if your usage is low.

Your energy bill is comprised of three main components:

• How much energy you use
• Utility delivery charges
• Local and state taxes

While you can’t control delivery charges and taxes, you can choose your electricity rate and lower your usage.

Explore our guide on Texas energy bills for a more detailed breakdown of your bill.

Small changes can make a big difference

You may think small habits don’t matter, but they can significantly impact your energy bill. Here are some tips that our experts recommend to lower your energy bill.

• Keep your HVAC unit in good condition. Heating and cooling account for the largest chunk of residential electricity usage — and tend to be the most expensive. HVAC systems accumulate buildup over time, which causes them to work less effectively and could increase your energy bill. Schedule regular maintenance (our experts recommend twice a year, in spring and fall), and replace your air filters to ensure the unit is in good working condition.
• Hit the off switch. Remember to turn off lights when you leave the room and electronics when you’re finished using them. Electronics continue to drain energy if they are plugged in, even when not in use. This is called “vampire energy.”
• Wash with cold water. Lowering your water heater or opting for cold water in the laundry or shower can help reduce your electricity usage.
• Use ceiling fans. Ceiling fans can help reduce your reliance on air conditioning. Fans use less energy than your HVAC system and can help keep you cool. Just remember that fans cool people, not rooms, so turn them off when you leave.

The largest part of your bill is your energy usage, so finding ways to reduce how much energy you use will go a long way in reducing your costs.

Switch energy plans or providers to find a better fit

Your electricity rate or plan structure could also be the culprit for your high energy bills. The good news is that you can switch plans to find your ideal match if you live in a deregulated city. Here’s how to find an energy plan that aligns with your needs and budget:

• Pick a rate that comfortably fits within your budget. Sometimes, the lowest rate isn’t always the cheapest plan. It’s more important to find a plan that matches your typical usage. Review your past bills to learn your normal monthly kilowatt-hour (kWh) usage, then enter your ZIP code on our marketplace and filter for plans that match.
• Compare contract lengths. Deregulated energy plans come in a wide variety of contract lengths. Consider how long you plan to live in your current home before deciding on a plan. For example, renters may want a plan that aligns with their lease, while homeowners may prefer a longer contract to lock in a lower rate.
• Search for unique incentives. Some energy plans offer unique ways to save, such as bill credits or free nights and weekends plans. These could be advantageous if they complement your energy habits. For other shoppers who don’t want to monitor their daily usage, a straightforward energy plan is the best way to keep costs low.
• Carefully read the plan details. Every plan on our marketplace has an Electricity Facts Label (EFL), an important document that explains all the details of your energy plan. Consult this document before signing up to ensure it’s a good fit.

Our marketplace streamlines the energy shopping experience by giving you everything you need all in one place. Enter your ZIP code and use our filters to tailor your results to your needs and preferences. If you need more assistance picking the right plan, give our team a call at the number on your screen.

Home upgrades to cut energy costs

If your usage is the reason your electricity bill is too high, one solution may be to invest in some energy-efficient upgrades. These can have large upfront costs but pay off greatly in the long run. If you have the ability to do so, consider these changes to your home:

• Invest in new appliances. Appliances with the ENERGY STAR label meet the Environmental Protection Agency’s standards for energy efficiency, meaning they use less energy or minimize energy waste. This applies to dishwashers, washing machines, refrigerators, and many other common household appliances.
• Switch to LED lights. LED lightbulbs use 75% less energy than incandescent versions and last 25 times longer. Switching to LED is a low-cost upgrade that can help you reduce your energy costs.
• Redo your roof. One of the bigger investments on the list, refitting your roof with reflective technology, also known as “cool roofing,” can help your home absorb less heat. This can be especially useful in Texas’ hot climate.
• Get a smart thermostat. Smart thermostats automatically adjust the temperature of your home for efficiency. This expense can drastically change your usage by preventing you from heating or cooling your home too much.
• Go tankless. Tankless water heaters only heat water when you need it instead of keeping a reserve all the time. Since water heating accounts for a big part of your electric bill, this could be worth the switch.
• Use the power of the sun. Go green by investing in solar energy. Many energy companies offer solar buyback plans so residents can sell the excess energy from their solar panels back to the grid, earning them credits towards their next bills. If you have the ability, you could also look into installing solar panels on your roof to further maximize solar energy.
• Consider AI home management tools. Choose Texas Power partners with Rivet Home, one of the first AI home management tools. Organize home data, schedule maintenance, and get personalized savings recommendations – all with one tool.