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The average American household spends around $150 per month on electricity. That adds up to over $1,800 annually. According to the Census Bureau just under 41% of American households use electricity for their home’s heat, meaning for many families monthly electricity costs are much higher! What most homeowners still don’t know is that a significant portion of their electricity spending is controllable. The challenge is knowing where to start.
Whether you live in a state with electricity choice like Pennsylvania, Texas, or Ohio, or you are stuck in a regulated market where your utility sets the rates, there are concrete steps you can take to reduce what you pay. This checklist covers 10 actionable items: from shopping for better rates to simple efficiency upgrades—that can help you take control of your electricity costs this year.
Before you can shop for electricity, you need to know if your state allows it. The following states have deregulated electricity markets that give residential customers the power to choose their supplier:
States with residential electricity choice: California (limited), Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Texas, Virginia (limited), and Washington D.C.
If you live in one of these states, you’re not stuck with whatever rate your utility charges. You can shop among licensed suppliers for a rate that fits your budget. Even in deregulated states, your local utility still delivers the power, reads your meter, and responds to outages. Switching suppliers only changes who generates and sells you electricity.
You can’t shop smarter until you know what you’re currently paying. Grab a recent electric bill and find these key pieces of information:
This information is essential for comparing offers and calculating potential savings.
State utility commissions maintain free comparison tools so you can see all licensed suppliers at once. These aren’t promotional sites – they’re regulated resources designed to help you make informed decisions.
Enter your zip code and utility, and you’ll see a list of available plans with rates, contract terms, and supplier information. It takes about five minutes to compare your options.
The lowest advertised rate may not always be the best deal. When comparing electricity plans, pay attention to what matters to you:
Look broadly at your household’s needs and goals to inform how you choose your electricity plan. In doing so you may find that the cheapest price isn’t always the best offer!
Many homeowners hesitate to switch suppliers because they assume it’s complicated or risky. It’s neither. When you switch electricity suppliers:
In essence, switching changes who sells you electricity, not who delivers it. The electrons flowing to your home are the same regardless of supplier.
If reducing your environmental footprint matters to you, many suppliers now offer plans powered by 100% renewable energy sources like wind and solar. These plans are often competitively priced with traditional options.
When evaluating green energy plans, look for those backed by Renewable Energy Certificates (RECs), which verify that the energy was generated from renewable sources. Some plans offer partial renewable content (such as 50% wind), so read the details if 100% renewable is your goal.
Heating and cooling account for nearly half of home energy use, making your thermostat one of the most powerful tools for reducing your bill. According to the U.S. Department of Energy, you can save as much as 10% annually on heating and cooling by simply turning your thermostat back 7°-10°F for 8 hours a day.
Practical settings to aim for:
A programmable or smart thermostat makes these adjustments automatic. You set your schedule once, and the thermostat handles the rest with no daily effort required.
Electronics on standby draw power even when they appear to be off. Common culprits include TVs, gaming consoles, cable boxes, phone chargers, and computers. This phantom power draw can add 5-10% to your electricity bill over the course of a year.
The fix is simple: use power strips for clusters of electronics and flip them off when not in use. When it’s time to replace appliances or devices, look for the ENERGY STAR label. Certified products meet strict efficiency standards and use less power in both active and standby modes.
Before making any efficiency upgrades, check if your utility offers rebates that could offset the cost. Many utilities provide incentives for:
Additionally, if your household is experiencing financial hardship, programs like LIHEAP (Low Income Home Energy Assistance Program) and state-specific assistance programs may help with bill payment. Pennsylvania, for example, offers multiple assistance programs through the Public Utility Commission.
A quick call to your utility’s customer service line or a visit to their website can reveal savings opportunities you didn’t know existed.
Electricity markets change, better rates become available, and fixed-rate contracts expire. Putting a reminder on your calendar 30 days before your contract ends is an easy way to make sure you evaluate your options annually. Spending 15 minutes reviewing current offers and either lock in a new rate or renew with your current supplier if they’re still competitive. This simple habit can save you hundreds of dollars over time.
Alternatively, if you’re looking for convenience, find a supplier who can provide a worry-free renewal process that renews you to a competitive fixed rate at the end of each term. This can be beneficial when choosing a supplier for multiple energy products, or when pairing with rewards programs as your benefits continue to compound over time!
You don’t need to tackle all 10 items at once. Start with the steps that apply to your situation. If you’re in a deregulated state like Pennsylvania, Ohio, Texas, or Illinois, shopping for a better electricity rate is the single biggest lever you have—and it takes less than 15 minutes using your state’s comparison tool. Combine rate shopping with efficiency habits like thermostat management, and you could meaningfully reduce your annual electricity costs.
Pick one item from this checklist to complete this week. Small steps compound into real savings.
