How to Reduce Your Energy Bill

Your high Texas energy bills, fixed

There are hundreds of energy-saving tips out there, from easy habit changes like turning off lights to major investments like solar panels. But how do you know which tips are actually worth your effort and money?

To help you focus on the changes that matter most, our energy experts evaluated common energy-saving tactics based on their upfront cost and savings potential. From simple adjustments to larger home upgrades, here are the most effective ways to tackle your high energy bill.

If you’re not sure what’s causing a sudden spike in your energy bill, review our troubleshooting guide to diagnosis the culprit.

Top five changes with the most impact on your bill

If you’re ready to make some changes to solve your high energy bills but don’t know where to start, these strategies are the most effective, according to our energy experts:

Rank	Change	Savings potential	Upfront cost	Why
#1	Keep up with HVAC maintenance	Very high	Moderate	Addresses the source of your highest energy consumer
#2	Use a smart thermostat	Moderate	Low	Optimizes your home’s temperature
#3	Switch to LED lights	Moderate	Low	A low-effort change that will chip away at daily energy usage
#4	Switch to a better electricity plan	High	Low	A compatible energy plan ensures you’re not overpaying for electricity.
#5	Invest in energy-efficient appliances	High	High	Cuts down energy usage on everyday chores

How we determined this list

Any small change to save energy is useful, even if it only shaves off a couple of kilowatt-hours (kWh). But some household changes have a greater impact and may be more worth your time and investment. The Energy Information Administration (EIA) conducted a study that examined residential electricity consumption to find out what uses the most energy in homes. The top three results were:

• Air conditioning: 19%
• Space heating: 12%
• Water heating: 12%

Since cooling and heating account for the most residential energy usage, strategies that address these systems typically offer the greatest savings.

Low-cost changes

Optimizing your home’s energy usage doesn’t always have to come with an expensive upgrade. Most of the time, small habits like leaving your lights on or using too much hot water waste electricity. Fortunately, it’s usually cheap or even free to make these small changes

• 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 can make them 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 monthly to keep your unit in the best condition.
• Seal air leaks and improve insulation. Hard-earned electricity is wasted if you have air leaks throughout your home. Fix cracks around your door and windows to reduce the workload on your HVAC unit. Consider adding insulation to your attic or crawl spaces to improve overall insulation.
• 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 reduce your energy costs.
• 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 when they’re 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.
• Get a smart thermostat. Smart thermostats automatically adjust your home’s temperature for greater efficiency. This expense can drastically change your usage by preventing you from heating or cooling your home too much.

High-cost changes

If you’ve adjusted your daily habits to save energy but still feel like your bills are too high, it may be time to consider some larger changes. While upgrading your appliances or performing home repairs can have a high upfront cost, these updates can lead to long-term savings by addressing a core issue in 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 label can apply to dishwashers, washing machines, refrigerators, and many other common household appliances.
• Redo your roof. One of the bigger investments on the list, refitting your roof with reflective technology (“cool roofing”), can help your home absorb less heat. This change can be especially useful in Texas’ hot climate.
• 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, switching to tankless could be worth it.

Another way to save: Switch energy plans or providers

Your electricity rate or plan structure could also be the culprit for your high energy bills. A plan that doesn’t match your home’s energy needs could cost you extra every month. The good news is that you can switch plans to find your ideal match if you live in Texas’ deregulated market. Here’s how to find an energy plan that aligns with your needs and budget:

• Pick a plan that matches your average usage. 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 this page to browse 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.
• 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 for personalized guidance.