The envelope you opened was the usual size, but the electric bill inside was a monster. What gives?
A major factor affecting your monthly electric bill is inflation. Energy prices rose sharply during the pandemic and have continued to rise in the years since.
Cooling costs are up nearly 40% since 2020, according to a June report from the National Energy Assistance Directors Association (NEADA) and the Center for Energy Poverty and Climate.
Energy prices tend to rise and fall based on changes in supply and demand. Lately, demand for energy has been increasing, in part because hotter summers and colder winters mean residents use more energy to cool or heat their homes.
The AI boom is also driving increased energy demand. But supply hasn’t kept pace, and that leads to higher prices.
This summer, average residential electricity prices are expected to rise 10.5% over 2025.
But we do have a few hacks you can try to lower your energy use.
Look for dirty filters and leaking air
- Your heating or air conditioning system may be straining with a clogged air filter. Check the filter regularly and change it when it’s dirty or at least every three months.
- Skimpy insulation could be leaking a lot of comfortable air. The government-sponsored Energy Star program has some tips on how to check your home for proper insulation.
- Your windows may need caulking or weatherstripping to help prevent air leaks. Sealing air leaks and fixing insulation can save 15% on your heating and cooling bills, Energy Star says.
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Ease off the thermostat
Seriously. Just set and forget (and maybe be willing to sweat).
"I cut down my bill by walking over to my thermostat once and using the 'schedule' feature," Nerd Tommy Tindall says.
He puts it at one temperature for during the day (he's OK with being a little hot or cold to save money), another for the night to keep the kids comfortable while they sleep.
"I cut down my bill by walking over to my thermostat once and using the 'schedule' feature," Nerd Tommy Tindall says.
He puts it at one temperature for during the day (he's OK with being a little hot or cold to save money), another for the night to keep the kids comfortable while they sleep.
The U.S. Department of Energy estimates you can save as much as 10% on your energy bill by going up or down 7-10 degrees, depending on the season. We have other ideas, too. You can:
- Use ceiling fans. But turn them off when you're not in the room.
- Install cooler, low-energy lighting, such as compact fluorescent bulbs or LEDs. Use lamps for efficient lighting of an area rather than ceiling bulbs attempting to light an entire room.
- Reverse the rotation of ceiling fans in cold weather to push rising warm air down.
Upgrade your thermostat
A smart thermostat can automate your temperature settings to adjust higher or lower at different times of the day, like while you're out of the house or sleeping. That approach can save money and help lower your bill in the long run.
Check your water heater setting
Determine the temperature setting on your water heater. It may have been installed at a higher-than-necessary temp. When you set your water heater at no more than 120 degrees, you'll not only save energy, but also slow down corrosion and mineral deposits in your home's pipes and the water tank itself, according to the U.S. Department of Energy.
Thermostat dials show a temperature estimate. To measure an accurate temp, use a thermometer to check the water coming from the faucet farthest away from the heater.
Look into level billing
Consider asking your utility company for "level billing." That's when a rolling monthly average is used to smooth out the peaks and valleys of the amount due. It can help you to budget for a more consistent monthly charge.
How to get help paying your electric bill
First, contact your electric utility provider. Here's a script for exactly what to say to the provider to get them to potentially lower your bill. Many offer payment breaks to customers experiencing a rough financial patch. You may also request a payment plan that will allow you up to 12 months to pay a balance due. The company might also help you get in touch with community agencies that offer financial assistance.
These programs vary by provider, so check with your electric utility for assistance available where you live.
Also, the Low Income Home Energy Assistance Program may be able to help you when you get in a bind with your electricity bill. Eligibility is based on your household size and income.
Requirements vary depending on where you live, but if you already receive benefits from the Supplemental Nutrition Assistance Program or Supplemental Security Income, among other federal programs, you may be automatically eligible. However, funding for the program also determines whether you'll be able to get assistance.
Find more information on the Low Income Home Energy Assistance Program by calling 866-674-6327.
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- 1. National Energy Assistance Directors Association. Summer Cooling Costs Projected to Hit Record Highs as Household Electric Bills Rise 10.5%. – June Price Update. Accessed Jul 2, 2026.
- 2. Energy Star. Methodology for Estimated Energy Savings. Accessed Jul 2, 2026.
- 3. Department of Energy. Do-It-Yourself Savings Project: Lower Water Heating Temperature. Accessed Jul 2, 2026.
