13 Tips to Reduce Your Electric Bill This Summer

Summer heat means turning up the AC, and that usually means higher electric bills. But, this year, you can take action to keep your bill lower. 

We've put together 13 actionable tips — from simple adjustments to long-term upgrades — to help you significantly cut your energy use and save money this summer. Keep reading to find out how you can lower your electric bill.

Adjust your thermostat

The U.S. Department of Energy recommends the following thermostat settings.

• 78º F during the day if people are home
• 85º F during the day if no one is home
• 82º F at night

To be clear, that does feel high for most people, so we recommend setting your thermostat as high as your personal comfort allows. Start by raising your normal setting by 1º each day to give your body time to adjust. If you can raise your thermostat at least 7 degrees higher than its normal setting, you could reduce your electric bill by up to 10% each year.

When you’re not at home, you can set the temperature higher or turn off the AC altogether to save more energy.

Install a programmable thermostat

The best way to ensure your home uses those recommended temperature settings is to install a programmable thermostat. By creating a simple schedule based on the habits of the people living in your home, you can guarantee your thermostat goes to the appropriate energy-saving temperature at the right time of day. With a smart thermostat, it’s easier to adjust those settings.

Cool your home with fans

A ceiling fan can make your home feel up to 4º degrees cooler than what the thermostat actually says. That way, you can raise your thermostat setting to those recommendations above, and still be comfortable.

If your home doesn’t have ceiling fans, you can achieve a similar effect with a few inexpensive portable fans to move around the cool air. With some trial and error, you can determine the best placement that circulates air most effectively and helps cool your home.

Upgrade your HVAC system

Improving your heating, ventilation, and air conditioning (HVAC) system — which accounts for as much as half of a home’s energy usage — is a sensible long-term investment that can help achieve lower energy costs. A high efficiency heat pump can save you energy compared to older, less efficient solutions.

Look for Energy Star-certified systems, which can save you 20% when they are installed correctly and replace a model that’s 10 years old or older. Pay attention to seasonal energy efficiency ratio (SEER) and energy efficiency ratio (EER) ratings, which measure how efficient the units are in cooling mode.

Maintain your HVAC system

Regular maintenance of your HVAC system keeps it running as efficiently as possible.

Remembering to get your air conditioner or heat pump serviced during the spring can help reduce the risk of an unexpected breakdown during the dog days of summer, too. 

Avoid electricity during peak hours

If you’re on a time-of-use plan from your utility, shifting electricity usage away from more expensive peak hours (often in the late afternoon and early evening) can save you money. Whether that means doing laundry earlier or later or adjusting your thermostat in the late afternoon, shifting your electricity consumption can cut into your bill.

Check your insulation

Insulation isn’t just for keeping your house warm in winter. It also keeps hot air out and cold air in during the summer. This allows you to conserve energy by running your air conditioner less often.

Take the time to check for air leaks and make sure your home is properly insulated.

Keep your kitchen cool

Your oven and stove can emit a lot of heat into your home, which will make your air conditioner work even harder. In fact, ovens and stoves can raise your kitchen’s temperature by up to 10 degrees.

Instead, shift some of your meals to a microwave or air fryer in the summer months, or fire up the outdoor grill to minimize the heat generated from the kitchen.

Do laundry at night

Much like your kitchen appliances, your washer and dryer can also warm up your house. Many detergents are designed to use cold water, so you can also change to a cold water cycle to limit how much work your water heater needs to do.

By saving your laundry until 8 pm or later, you can avoid heating up your home unnecessarily, and you might also be able to take advantage of lower evening time-of-use rates.

Turn down the water heater temperature

You’re probably not looking forward to a hot shower on hot summer days, so use this as an opportunity to turn down the temperature of your water heater. Some manufacturers set their default water heater thermostat temperature to 140 degrees Fahrenheit, but most households can get by with them set at 120.

Water heaters lose heat to the air that surrounds your water heater. By adjusting your temperature down to 120 degrees, the Department of Energy estimates you can save anywhere from $36 to $61 annually by avoiding excess standby heat loss and up to $400 total from heating the water you actually use.

Upgrade your light bulbs

You might not think about the heat that older incandescent bulbs are creating, but every little bit counts when you’re trying to cut down on summer energy bills.

By switching from older incandescent lights to LED bulbs (or smart LED bulbs) the average home can save up to $225 per year in lighting costs, according to the Department of Energy. That’s because LED lights use up to 90% less energy than incandescent bulbs, and last 25 times longer.

Look at switching energy plans

If you live in an area with deregulated electricity, you may be able to switch electricity providers and save. Finding a lower rate can generate savings on every kilowatt-hour you use. Be sure to read the fine print because not every plan will save you money.

If you have solar panels or a home battery, you can even find plans that take advantage of both.

Go solar

By installing a solar power system on your home, you may be able to reduce your energy bill for years to come. Sunny summer days are when solar panels generate the most electricity and are often when solar savings are highest.

Ready to go solar? Check out Palmetto’s solar savings calculator or energy advisor today to see how solar energy and home electrification may work for your home.

Frequently asked questions

How can I reduce my electric bill?

There are lots of steps you can take to lower your energy bill, from small interventions, like switching to LED lightbulbs and setting an energy saving schedule on a smart thermostat, to large ones like improving your insulation or installing solar panels. Whether you can save, and how much, depends on the specifics of your situation.

Is new insulation in my home worth it? 

Yes, new insulation can often be worth it for multiple reasons. Improved insulation can significantly reduce energy bills, improve indoor comfort, and give you protection against issues like moisture and mold.

Can I save money by using power during off-peak hours?

If you’re on a time-of-use plan and can use more energy at home during off-peak hours, you can save money. There are many ways to avoid or limit electricity usage in your home during peak hours. You can save the most by using large energy-users such as a washing machine, dryer, dishwasher, or oven during off-peak hours.

Does solar really save you money?

Solar can save you money by helping you avoid buying electricity from your utility, or earning your bill credits to offset your use. Solar isn’t a fit for everyone, but many people have real potential to save.

Disclaimer: This content is for educational purposes only. Palmetto does not provide tax, legal, or accounting advice. Please consult your own tax, legal, and accounting advisors.