How to Save Money on Heating and Cooling Bills

The first step to saving energy is to determine how much you presently use. One way to get an estimate is to visit the Lawrence Berkeley Lab to launch a computer program (see Resources, bottom) that can estimate your annual energy use. By answering a smattering of questions about your home’s energy use, you can receive an estimated calculation of your heating, cooling, hot water, lights, and appliance use.
 

You can also measure your energy use by gathering up all your utility bills, check registers, or online records over the past year and adding them up to determine areas where you can cut back the most. Mild or harsh winter and summer seasons can make a big difference in your usage each year, as can cyclical soaring gas and electric prices. 

But again, knowledge is power. By identifying where most of your money goes, you and your family can focus on areas where the biggest cutbacks can have the maximum impact on your household expenses.

Lower Your Heating/Cooling Bills

The following are several tips specifically designed to help save heating and cooling costs within your home with minimal or no additional investment:

• Make sure the fireplace flue is closed during summer months so your AC doesn’t get sucked up the chimney.
• Lower the thermostat at night during winter months.
• Ensure that all heating and cooling vents are clear.
• Line-dry your laundry in lieu of using the dryer.
• A programmable thermostat only cost about $50 on the high end but can yield up to a 1,000 percent in savings in the first year. For maximum efficiency, set the thermostat to automatically lower the temperature by 5-7 degrees overnight.
• An Energy Star water heater costs about $200 and could save you an average of $30 or more per year on energy costs over it’s 10-15 year lifespan.
• Insulating jackets for water heaters are available at local home improvement stores and could save up to $100 per year on water heating costs.
• Inquire as to whether your utility companies offer lower rates for off-peak hours – which may mean doing laundry at midnight.
• When you turn on your air conditioner for the first time, or after a vacation, or during or a hot spell, don’t set the thermostat any colder than normal, as it will not cool your home any faster.
• Don’t place lamps or TV sets near your air-conditioning thermostat. The thermostat senses heat from these appliances, which can cause the air conditioner to run longer than necessary.
• Plant trees or shrubs to shade air-conditioning units but not to block the airflow. A unit operating in the shade uses as much as 10 percent less electricity than the same one operating in the sun.
• Replace standard light bulbs with electric-efficient fluorescent bulbs (as these bulbs are more expensive, don’t replace the ones in light fixtures that have a tendency to get knocked over).
• Cook with small appliances instead of your oven or stovetop. Microwave ovens are the most energy efficient, but other less expensive alternatives include toaster ovens, slow-cookers, and pressure cookers.
• Consider three-way lamps and bulbs; they make it easier to keep lighting levels low when brighter light is not necessary.
• Position your refrigerator away direct sunlight and close contact with hot appliances that will make the compressor work harder.

Many utility companies offer “level pay” billing plans that average your annual usage and bill you fixed payments each month. This allows you to spread out your peak season costs (i.e., high air conditioning bills in summer, heating bills in winter). This can be helpful if you’re trying to maintain a monthly budget all year long.

However, be aware that at year-end the utility company will “balance bill” you for any excess amount used. It can be difficult to pay off an unexpected large bill like this, so anticipate wisely and practice conserving energy all year round.
 

Resources

For more information on how to save money on energy utility bills, check out these resources:

Lawrence Berkeley Lab Home Energy Saver

Great "How 2" video from MechanicalHeating.com:

More "how2" videos from MechanicalHeating.com

Energy Star Brochure
 

Kara Stefan is a freelance financial writer and author of Head of Household: Money Management for Single Parents. You can find her at Linkedin or Kara Stefan Communications.