Feb 16, 2026
Record low temperatures and snowfalls have walloped the U.S., while heating bills have walloped utility customers.
A report released in January by J.D. Power found that 22% of electricity customers (more than one in five) couldn’t afford to pay their bills in full (1).
Advertisement
No wonder. The National Energy Assistance Directors Association (NEADA) notes the average family’s monthly heating bill has already hit $995 this winter, an increase of $84 from last year.
NEADA also predicts that home heating costs will rise another 9.2% this winter — three times the rate of inflation (2). That’s down to the rising cost of electricity (projected to rise 12.2%) and natural gas (8.4%).
“These increases may not sound dramatic to higher-income households, but for families already struggling, they are devastating,” said Mark Wolfe, Executive Director of NEADA.
“Millions of households are being pushed deeper into utility debt and closer to shutoffs simply because they cannot afford to keep their homes warm (3).”
In fact, according to The Century Foundation think tank, 14 million Americans had so much utility debt in 2025 that it was headed for collections (4).
NEADA predicts that as many as four million households could have their power shut off.
Here’s what you need to know about your options for coping with high heating bills amid the rising cost of living, and how you can find resources to help you reduce your heating costs and offset the steep price increases for electricity.
Middle-income households struggling as well
The situation is hitting both low- and middle-income families.
Advertisement
Natural gas is the primary heating source for almost half of U.S. households, and another four in 10 homes use electricity. Last year, the average electricity bill hit an all-time high of $189 a month and the price of natural gas also rose
NEADA reports that low- and middle-income families will now spend up to 10% of their income on energy bills. Add that to the high cost of groceries and housing and many families are struggling.
For lower-income families, there are government initiatives to help cover the cost of energy bills.
These include the Low Income Home Energy Assistance Program LIHEAP, which NEADA notes is severely underutilized.
In fact, only 17% of eligible households currently receive assistance through the program, according to their research.
Advertisement
Low-income families may also qualify for the Weatherization Assistance Program (WAP).
You may also find information on state, county or city-level programs though the United Way-based service 211 (4).
For middle-income earners, there are ways to trim down your heating costs so that the spike in energy prices doesn’t disrupt your budget.
These can include:
- An electricity audit. Many companies offer a free audit to find energy-wasters in your home, or you can apply for the energy efficient home improvement credit during tax season to offset the cost.
- A smart thermostat. Scheduling your heating to lower during the night and while you’re away from home can help save money on your bill.
- Understanding peak and off-peak hours. Running your appliances like dishwashers and dryers during off-peak hours can lower costs. Many modern appliances have timers that can allow you to load them during the day and run them overnight, for example.
- Upgrading appliances. If your appliances are old, consider updating them with smart, energy efficient ones.
- Installing solar panels. These can significantly lower your heating prices in the long run, and you may be able to apply for tax credits to offset the cost of installation.
The good news is that winter will end and warmer weather will arrive.
But as the cost of utilities continues to rise, it’s good to be as energy-efficient as possible all year round.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
J.D. Power (1) NEADA (2) The Century Foundation (3) 211.org (4)
You May Also Like
- Turning 50 with $0 saved for retirement? Most people don’t realize they’re actually just entering their prime earning decade. Here are 6 ways to catch up fast
- Inside a $1B real estate fund offering access to thousands of income-producing rental properties — with flexible minimums starting at $10
- Vanguard’s outlook on U.S. stocks is raising alarm bells for retirees. Here’s why and how to protect yourself
- Here are 5 easy ways to own multiple properties like Bezos and Beyoncé. You can start with $10 (and no, you don’t have to manage a single thing)
Rebecca Holland is dedicated to creating clear, accessible advice for readers navigating the complexities of money management, investing and financial planning. Her work has been featured in respected publications including the Financial Post, The Globe & Mail, and the Edmonton Journal.
