How to lower your electricity bill

Verified Editorial Guide

The Direct Answer

Heating, cooling, water heating and the dryer are roughly 70% of a typical bill. Adjusting the thermostat by 2°C, lowering the water heater to 49°C, and line-drying typically cuts 15–25% with no purchases.

Typical Costs & Pricing
Thermostat change
$0 — saves $80–$200 / year
Water heater setting
$0 — saves $30–$60 / year
LED bulbs (5)
$15–$25 — saves $30 / year
Draft sealing kit
$25–$50 — saves $60–$150 / year
Smart thermostat
$120–$250 — saves $100–$180 / year

The short answer

Heating, cooling, water heating and the dryer are roughly 70% of a typical bill. Adjusting the thermostat by 2°C, lowering the water heater to 49°C, and line-drying typically cuts 15–25% with no purchases.

Most "energy saving tips" target the 5% of your bill that lighting represents. Start with the big four instead.

Step by step

  1. Read your last 12 months of usage — most utilities show this in the online portal.
  2. Shift the thermostat 2°C (lower in winter, higher in summer). Expect 6–10% off heating/cooling.
  3. Set the water heater to 49°C / 120°F.
  4. Line dry or use the dryer's moisture sensor instead of timed cycles.
  5. Move laundry and dishwashing to off-peak hours if you are on a time-of-use tariff.
  6. Swap the five most-used bulbs to LED; ignore the rest until they fail.
  7. Re-check the bill after one full cycle and keep only what actually moved the number.

What it costs

ItemTypical cost
Thermostat change$0 — saves $80–$200 / year
Water heater setting$0 — saves $30–$60 / year
LED bulbs (5)$15–$25 — saves $30 / year
Draft sealing kit$25–$50 — saves $60–$150 / year
Smart thermostat$120–$250 — saves $100–$180 / year

Common questions

Do standby devices matter?

Marginally — typically 2–5% of a bill. Worth doing, not worth starting with.

Is a smart thermostat worth it?

Yes if you heat or cool an empty home during the day. Otherwise the payback is slow.

Should I switch supplier?

Compare unit rate and standing charge together. A low unit rate with a high standing charge loses for low users.

Was this guide helpful?

Common Questions

Do standby devices matter?

Marginally — typically 2–5% of a bill. Worth doing, not worth starting with.

Is a smart thermostat worth it?

Yes if you heat or cool an empty home during the day. Otherwise the payback is slow.

Should I switch supplier?

Compare unit rate and standing charge together. A low unit rate with a high standing charge loses for low users.

Step-by-Step Checklist
0%
  • Pull 12 months of usage data
  • Thermostat adjusted 2°C
  • Water heater at 49°C
  • Off-peak laundry scheduled
  • Top 5 bulbs are LED
  • Drafts sealed
  • Bill re-checked after one cycle
100% Free

Never miss a step.

Every guide, checklist and calculator is free with no account. Saved guides stay in this browser.

Browse all guides