Jan 2, 2025
Millions of people are facing the possibility of living in the dark.
A recent LendingTree study found that 34% of Americans cut back or skipped essential expenses at least once in the past year to pay for utilities.
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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.
“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.
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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.
You can reduce your use of electricity, and cut down on your bill without changing your habits by using a few strategies.
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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.
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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.
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: Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
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.
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Purchasing an Energy Star heat pump water heater will slash your energy bill significantly.
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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.
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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.
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Sealing your windows and doors helps stop air from escaping your home, meaning less strain on your AC or heating system.
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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.
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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.
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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.
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Renters can replace their lightbulbs with LEDs to cut down on usage.
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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.
