SPY -0.26%
BND -1.09%
QQQ -0.28%
DIA -0.10%
VNQ -1.95%
GLD -1.66%
BTC -2.49%
AAPL +0.50%
GOOGL -2.04%
NVDA -1.69%
MSFT +3.99%
META +1.53%
AMZN -1.96%
TSLA -1.67%
UBER -0.37%
GS -1.39%
BAC +0.96%
JPM +0.87%
BRK.A +0.38%
COST +2.54%
XOM +1.13%
BABA -5.61%
WMT -1.96%
SPCX -3.86%
DIS +1.63%
F -2.90%
Live a richer life.
  • Discounts and special offers
  • Subscriber-only articles and interviews
  • Breaking news and trending topics

Already a subscriber?

By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy.

Not interested ?

Home
Managing Money
Budgeting
Couple looks at utility bill. fizkes/Shutterstock

‘Difficult decisions to keep the lights on’: A third of Americans struggle to pay their utility bills. Here's what’s going on — and how to cut down your energy expenses

Advertisement

One in five people in the U.S. were unable to pay some or all of their energy bills, even after cutting down on other expenses, the study found.

Take control — get our free newsletter.

By signing up, you accept Moneywise Terms of Use, Subscription Agreement, and Privacy Policy.

“Lots of people have found themselves needing to make difficult decisions to keep the lights on. For some, that might mean cutting back on some expenses,” Matt Schulz, LendingTree chief credit analyst, said.

The average electricity bill in the U.S. was $185.59 in August 2024, up nearly $5 from a year prior. Connecticut, Arizona and Texas had the highest electricity bills, while Washington, Montana, and Wyoming had the lowest.

But there’s another factor at play.

Reduce use

Electricity usage varies widely by state, in part due to climate.

Notably, the study found states with the most expensive electricity rates don’t have the highest average electricity bills.

Hawaii has the most expensive rate of electricity, but only the fourth highest electricity bill on average.

Meanwhile, Louisiana has the lowest electricity rate in the country, but the 18th highest average bill.

That’s because energy usage has a major impact on your bill, no matter what state you live in.

Advertisement

You can reduce your use of electricity, and cut down on your bill without changing your habits by using a few strategies.

Must Read

Save without sacrificing

Your first step is to find out how much electricity you use by taking a look at your utility bill.

The average property consumes 1,000 kilowatt hours per month, according to the Department of Energy (DOE).

Appliances like fridges, washers and dryers, microwaves, ovens, and electronics like TVs and computers use the most electricity.

When you’re buying a new appliance or device, you can use the DOE’s guide to energy-efficient products to find the lowest products.

Time-based pricing.

Most US states charge different electricity rates at different times of the day in response to higher and lower usage of power.

Advertisement

Lots of people will be using electricity around dinnertime, increasing demand on the electrical grid and driving power prices higher.

But fewer people will use their appliances late at night, and the utility will charge you less at that time because the electrical grid is under less strain.

The DOE offers a state-by-state guide on each utility’s time-based rules.

If you decide to wash your clothes or run your dishwasher during off peak times, you’ll reduce your energy bill.

Read More: About 1 in 5 Americans over 50 has zero retirement savings. Here's why it's not too late

More tips for saving on energy costs

There are no signs that Americans’ utility costs are going down anytime soon, so those who want to save will have to take matters into their own hands. Here are some ideas.

  • Purchasing an Energy Star heat pump water heater will slash your energy bill significantly.

  • Lowering the temperature on your water heater from 140 to 120 will cut your bill by $400 per year and it’s likely the water will still feel just as hot, according to the Natural Resources Defense Council.

  • Selecting the cold water setting in your washing machine will cost less and closing blinds or curtains during the winter will save you on home heating.

  • Sealing your windows and doors helps stop air from escaping your home, meaning less strain on your AC or heating system.

  • Using a power strip, sometimes referred to as a surge protector, will help you reduce electricity usage by preventing electronics and appliances from draining energy while they’re off.

  • It’s possible some of your appliances are draining energy when you’re not using them, if your electricity bill has high rates of use when you’re sleeping, try unplugging some devices at night.

  • If you own your home, you can install motion sensor lighting so lights only turn on when you walk into a room instead of creating surges every time you switch on a light.

  • Renters can replace their lightbulbs with LEDs to cut down on usage.

You May Also Like

Share this:
William Koblensky Varela Staff Reporter

William Koblensky Varela is a Staff Reporter at Wise who has worked as a journalist for seven years covering finance, local news, politics, legal issues and the environment.

more from William Koblensky Varela
Amazon folding house

Real Estate • Apr 11

‘You literally just unfold it’: Some Americans are rushing to pay less than $20K for 2-bedroom tiny houses on Amazon. It may be a low-cost route to homeownership — but here’s the catch

US President-elect Donald Trump speaks during a meeting with House Republicans at the Hyatt Regency hotel in Washington, DC.

News • Mar 04

Americans may have to kiss goodbye to Walmart’s ‘everyday low prices’ if President-elect Donald Trump’s proposed tariffs take effect, warns CFO

Explore the latest

Disclaimer

The content provided on Moneywise is information to help users become financially literate. It is neither investment, tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities, enter into any loan, mortgage or insurance agreements or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter. Advertisers are not responsible for the content of this site, including any editorials or reviews that may appear on this site. For complete and current information on any advertiser product, please visit their website.

†Terms and Conditions apply.