How to Lower Your Electric Bill: Steps That Add Up
Practical ways to lower your electric bill, with what one saved kWh is worth in each state and when rate plans or solar make sense.
Published 5 min readRoofPayback editorialChecked by automated fact and quality checks
Official data: EIA · DOE · IRS · how we check
In this article · 9 sections
- 01Short answer
- 02What one saved kWh is worth in your state
- 03Step 1: Find where your kWh go
- 04Step 2: Cut the biggest loads first
- 05Step 3: Pay less per kWh with the right rate
- 06Step 4: Watch for price changes
- 07Step 5: Consider solar, with realistic math
- 08A simple plan you can start this week
- 09Bottom line
Short answer
The surest way to lower your electric bill is to use fewer kilowatt-hours (kWh) and to pay less for each one. A kWh is the unit your utility bills you for. If that term is new, read what is a kilowatt hour first.
Most households can do three things: cut the biggest loads, shift use to cheaper hours if their utility offers that, and check whether the rate plan fits their habits. Rooftop solar is a fourth option, but it is a big purchase and not a quick fix.
This guide does not promise a specific saving. Your result depends on your home, your weather, your habits and your utility's rates. We are also not quoting government efficiency percentages here, because we could not verify them against the official pages today. We only use numbers from our own data.
What one saved kWh is worth in your state
Every kWh you avoid is worth about your state's average residential price per kWh. The U.S. Energy Information Administration (EIA) publishes these averages. They are utility revenue divided by kWh sold, so they include taxes and fees. Your own bill may differ.
Here is how much the same kWh is worth in a few states, using EIA's July 2026 residential prices:
| State | Price per kWh | Example cost of 900 kWh per month |
|---|---|---|
| Louisiana | 12.72¢ | $114 |
| Texas | 15.88¢ | $143 |
| Illinois | 19.22¢ | $173 |
| New York | 29.9¢ | $269 |
| California | 33.61¢ | $302 |
| Hawaii | 48¢ | $432 |
The 900 kWh column is an assumption, not a typical bill. It shows that the same habit is worth much more in Hawaii than in Louisiana. You can look up your state on the electricity prices page and see more on the average electric bill by state guide.
Step 1: Find where your kWh go
You cannot cut what you cannot see. Start with your bill and look at your monthly kWh. Compare summer and winter months. A big gap usually points to heating or cooling.
Then list the large loads in your home. These are usually:
- Heating and cooling.
- Water heating.
- Clothes dryers and other large appliances.
- Electric vehicle (EV) charging, if you have one.
- Devices that run all day, such as older refrigerators or a second freezer.
Many utilities offer a home energy audit or an online usage breakdown. Ask yours. Availability and cost vary by utility.
Step 2: Cut the biggest loads first
Small tweaks feel good, but big loads decide the bill. Focus where the kWh are.
Heating and cooling
Set the thermostat to a level you can live with and avoid large swings. Keep filters clean and vents clear. Seal obvious air leaks around doors and windows. Savings depend on your climate and your home's insulation, so we do not give a number.
Water heating
Lower the water heater setting if it is hotter than you need. Fix leaking hot water taps. Wash clothes in cold water when the label allows it.
Lighting and small devices
Swap old bulbs for LEDs when they burn out. Plug electronics that sit on standby into a power strip you can switch off. Each change is small, but they are cheap and easy to do.
EV charging
If you charge an EV at home, charging is a large load. As an example, 3,500 kWh of home charging per year costs about $574 in Alabama and about $1176 in California at average state prices. This is an assumption for illustration. See home EV charging cost by state for more.
Step 3: Pay less per kWh with the right rate
Some utilities charge different prices at different times of day. This is called a time-of-use (TOU) rate. If you can run the dishwasher, laundry or EV charger at cheaper hours, a TOU plan can lower your bill. If you cannot shift your use, it can cost more.
Before you switch, read the rate sheet. Check the peak hours, the peak price and any fixed monthly charges. Our guide on time-of-use electricity rates explains how to compare plans.
Step 4: Watch for price changes
Prices change from year to year. EIA data show that between July 2025 and July 2026 the average residential price rose 11.8% in Idaho and fell 12.5% in Connecticut. Most states rose, a few fell. That means a bill can go up even when your use stays flat. See electricity price increases by state for the full list.
Step 5: Consider solar, with realistic math
Rooftop solar produces electricity during the day and can cut the kWh you buy from the grid. It also costs money upfront. Whether it pays off depends on your electricity price, your roof, your local net metering rules and your quote.
Our example home uses a 7 kW system, 10500 kWh per year of use, and an installed cost of $3000 per kW, or $21000 in total. It assumes no incentives, $100 per year in maintenance, 2.5% yearly price growth and 0.5% yearly panel degradation over 25 years. The 30% federal Residential Clean Energy Credit is not available for property placed in service after December 31, 2025. Local programs vary, and DSIRE keeps a database of them.
To test your own numbers, use the solar calculator. Read the methodology to see how we calculate.
A simple plan you can start this week
- Write down your last 12 months of kWh from your bills.
- Pick the two biggest loads in your home.
- Make one change to each, such as a thermostat setting or a water heater setting.
- Check your rate plan for time-of-use options.
- Compare next month's kWh with the same month last year, adjusting for weather.
Use kWh, not dollars, to judge your progress. Prices move, but kWh show what you changed.
Bottom line
Lowering your bill means using fewer kWh at a lower price. Start with heating, cooling and water heating, since they are usually the biggest loads. Check your rate plan. Treat solar as a longer-term decision and run the numbers first. The value of each kWh you save depends on where you live, from 12.72¢ in Louisiana to 48¢ in Hawaii in the EIA data above. Use your own bill and quotes before making any decision.
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