How to Save Money on Your Electric Bill in Winter

*This post has been reviewed by an Illinois Registered CPA. However, when making important financial decisions, it's best to speak with your financial advisor.

Last Updated on August 13, 2022

Learn How to Save Money on Your Electric Bill in Winter

Is winter that dreadful time of the year when your electricity bills soar? Most households face this problem in the cold season, especially if they live on low income. This is normal. Your heating system works non-stop. But while it ensures the comfort level you need, it also squeezes your wallet.

How can you lower your electricity bill in the cold winter months? Learn how to save money on your electric bill in winter in this post. We’ll walk you through some energy-saving tips that reduce consumption and show you how to budget to ensure you can afford your electricity bill.

How to Save Money on Your Electric Bill in the Winter by Adjusting the Temperature

Do you often find yourself asking why you can’t save money? The most probable answer is you spend too much. The solution is to spend less. The same logic applies to saving money on your electricity bill in the winter. To reduce electricity costs, you should try to lower your consumption.

The heating system takes up to almost a third of the electricity usage per household in winter. It makes sense to try to reduce your spending starting here. Don’t fret. You don’t have to adopt drastic measures, just be more moderate with your consumption. For example, you don’t need to keep the system at 80 degrees all the time. Lowering the temperature by only ten degrees can make a big difference.

You can make the adjustment step by step. Going from 80 to 70 degrees is a lot. Try to decrease the temperature by 2-3 degrees per week. Do it until you reach a level that allows you to feel comfortable and save money on electricity. The ideal temperature for homes depends on several factors:

1. The size of your home.
2. The number of people who live there.
3. Your personal temperature preferences.
4. Your home’s insulation.
5. The area of your home where you spend time since some rooms warm up faster than others.
6. The activities you carry out. For example, the more active you are, the less heat you will need.

The general temperature range for homes should be between 68 and 76 degrees Fahrenheit, according to the U.S. Government’s Department of Energy (DOE). Setting your thermostat at this temperature can ensure a good level of comfort. The DOE also recommends lower temperatures at night to sleep better.

Biologically speaking, our bodies feel comfortable at temperatures of around 70 degrees. Yet, many of us have gotten used to much more. In the cold season, it’s tempting to turn the heating on to more than 75 degrees, but it is neither necessary nor economical.

What Other Factors Influence My Electric Bill Due to Heating Costs?

Many factors determine how much you spend on heating. For starters, there is insulation. The better your insulation is, the less money you will waste because proper insulation allows the heat to remain inside. It also prevents the cold from outside from penetrating the walls. Good wall insulation is not the only type of insulation that matters.

Most homes have good insulation nowadays, but homeowners still lose heat through the doors and windows. You should check that these are also well insulated. If they aren’t, invest in sealing or replacing them. This will cost some money, but it’s a good investment in the long term.

Another element that influences heating necessities is exposure to the sun. This refers to how your house is positioned. The number of hours per day it faces the sun influences your electricity bill. Homes that face south have a longer exposure. For this reason, they require less heating.

Your surroundings also influence your home heating costs. You might have a garden or trees in front of your home. These are great for keeping shade during the summer, but in winter, the sun won’t warm up your house’s walls because of them.

How to Save Money on Electric Bills in Winter Using Thermostats

Thermostats are intuitive instruments that allow you to manage your central heating system’s temperature. There are three main types of thermostats:

• Manual
• Programmable
• Smart

The most basic thermostats are manual. If you want to turn the heat on and off, you must do it from the device. The same goes for changing the temperature.

Programmable thermostats allow you to configure the ideal temperature. For example, set it to 68 degrees. The thermostat will make sure this is the constant temperature in your home. You won’t have to manually adjust the system. It works automatically and keeps the temperatures at the level of your choice.

Smart Thermostat Advantages

Smart thermostats are the latest innovation in the field. These are also programmable devices. They offer plenty more customization options, such as setting different temperatures for different areas of your home.

These are some of the most efficient tools for your heating system. If there are rooms you don’t use, set a lower temperature there and just heat the areas where you spend most of your time. You can significantly cut down your costs this way, especially in a big house.

Smart thermostats also offer other advantages. They can connect to your mobile via an application. They allow you to control the temperatures at home remotely. For example, you might go on vacation. It’s not a problem if you forgot to turn the heating system off. You can do it from your smartphone and save money.

Smart thermostats are quite autonomous. They can adjust the temperatures based on your preferences without your intervention. They also fetch weather data from the internet. Based on it, they adjust the temperature to ensure the ideal level of comfort. All these smart functions help you save money in the long run. Even if they’re more expensive at first, smart thermostats are worth it.

Smart thermostats pros vs. cons

Here is an overview of the biggest pros and cons of smart thermostats.

Pros	Cons
Highly autonomous	Complex settings
Multiple features	More expensive
Good for energy conservation	It takes more time to learn to use them

What Other Practical Tips Can You Rely on to Reduce Electricity Costs in Winter?

Here are a few other tips to stay warm in winter while reducing electricity costs.

1. Adjust your clothing for the cold season

You don’t have to wear a scarf and coat at home, but wearing a sweater and socks is a good idea. They will keep you warm and allow you to reduce the temperature. It’s a cheap and practical solution to spend less on heating your home. You can also use thick blankets when sleeping.

2. Use electric heaters in conjunction with central heating

Electric heaters can help you heat a small area in a few minutes. They are not cost-effective to use for the whole house, but they do a great job if you seldom need more heat in a certain part of your home, such as the bathroom. Raising the temperature in the entire house for a single room doesn’t make sense. With electric heaters, you quickly warm the desired space for a short time.

3. Cut down on electricity costs by reducing your overall consumption

Your heating system might represent 30% of your winter electricity bill. But what about the rest? You also use appliances, light bulbs, gadgets, etc. Try to be more moderate with their usage. Start with simple things – your light bulbs. If you’re not using energy-efficient bulbs, make the switch before winter. These bulbs can use 60% to 80% less energy than traditional incandescent bulbs.

Another recommendation is to keep all your electronics unplugged when not in use. Even in standby mode, your appliances still use electricity. This adds up to the bill bit by bit. Another habit you should stick to is keeping the TV turned off when you’re not watching. Leaving the TV on all the time, as many households do, also adds to your bill.

Replace old appliances with new, energy-efficient ones. This can significantly reduce your bill. Insulate your water heater. You can even do this by wrapping it in a blanket. It will keep the water inside warm for a longer time and reduce electricity consumption.

Replacing old water heaters with new ones is another cost-effective solution. New heaters use less energy. Those that provide more than 55 gallons can use 25%-50% less energy than old models.

4. Don’t skip the heating system’s yearly check-up

Just like a vehicle, the heating system also needs a yearly checkup. It is part of a necessary maintenance schedule. This will prevent any malfunctions and help you save money. Your heating system might need proper cleaning before you turn it on. If the furnace is clean, the system runs smoothly. It will not take as many resources to warm your house.

5. Insulate Your Home Indoors with Rugs

Wall insulation is necessary to preserve energy, but there’s more you can do. Insulate your home on the inside with rugs. These can give it the nice cozy aspect you’re looking for and will make you feel less cold when walking around. Rugs are an inexpensive and long-lasting solution that tackles cold floors.

How to Save Money on Power Bills in the Winter by Budgeting

Budgeting will not only help you save money for your electricity bills. It can also help you start saving in an account for bigger goals. Proper budgeting involves the following steps:

1. Calculate your monthly income.
2. Calculate your monthly expenses.
3. Divide your budget according to your expenses.
4. Only use the allocated budget for earache expenditure.

Budgeting enables you to make sure your bills are always covered. When you get paid, you can immediately set aside the necessary amount for your bills. This way, you never risk getting penalties. Three popular budgeting methods that can help you out are the:

• The 50-30-20 budgeting method
• The digital envelopes system
• Priority-based budgeting

Budgeting doesn’t have to be complicated. Here is a budget example for the 50-30-20 method:

Overall monthly budget: $3,700
Savings	20%	$740
Needs	50%	$1,850
Wants	30%	$1,110
Remaining unassigned budget: $0

How to Save Money on Electric Bills in Winter with the Half-Payment Method

The half-payment method ensures you always have money for your electricity bill. With this method, you put money aside from each paycheck. Let’s imagine you get two paychecks per month. Put aside 50% of the electricity bill’s worth from each one. By the end of the month, you should have the entire amount to pay your bill.

You can apply this method to all your recurrent payments. It can help you avoid penalties and debts. In the long term, it can even help you fix your credit faster.

Frequently Asked Questions (FAQs)

How can you save money on electricity bills fast?

If you want to save money for your winter energy bills, budget. Make sure your budgeting strategy includes a separate envelope or account for savings. Put money in that account every month. Even saving as little as $50 per month, for 5-8 months per year can make a big difference. Use this fund to cover electricity costs in the cold season.

How can you reduce electricity consumption in the winter?

Start by lowering the thermostat temperature. The ideal level is 68 degrees. Get used to dressing in warm clothes, even indoors. Reduce electricity usage with energy-efficient bulbs. Unplug appliances when not in use. Make the necessary heating system check-ups each year.

Can smart thermostats help me lower my energy bill?

Yes, smart thermostats allow you to save money on heating bills. These have an automated system that adjusts the temperature in your home. If it’s getting warmer outside, they will adjust the temperature inside accordingly.

These thermostats also work remotely. You can program the heating system on the go. You can also set different temperatures for different parts of your home.

For example, keep the bedroom cooler. This also helps promote better sleep. Heat your living room and kitchen more, since these are parts of the home where you spend time during the day.

Sources:

Programmable thermostats. Energy.gov. (n.d.). Retrieved June 25, 2022, from https://www.energy.gov/energysaver/programmable-thermostats

Heating and cooling. Energy. (n.d.). Retrieved June 25, 2022, from https://energy.ec.europa.eu/topics/energy-efficiency/heating-and-cooling_en

Freitas, T. (2022, June 1). Set your thermostat to this temperature to save money this summer. CNET. Retrieved June 25, 2022, from https://www.cnet.com/home/energy-and-utilities/set-your-thermostat-to-this-temperature-to-save-money-this-summer/

Hamblin, J. (2020, June 10). Paging dr. Hamblin: Your bedroom is too hot. The Atlantic. Retrieved June 25, 2022, from https://www.theatlantic.com/health/archive/2019/12/sleep-cold/604111/

What’s the ideal room temperature for comfortable living? Vivint. (2021, September 29). Retrieved June 25, 2022, from https://www.vivint.com/resources/article/best-home-room-temperature

Water Heater Buying Guide. Consumer Reports. (n.d.). Retrieved July 12, 2022, from https://www.consumerreports.org/cro/water-heaters/buying-guide/index.htm?searchToken=water+heater