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How To Reduce Your Electricity Bill

Tips for finding cheap electricity and saving on energy costs

At Choose Energy, our reporters seek out information that puts you in control of your energy. Our partners do not direct our editorial content, though we may reference their products in our posts. Read about how we make money to learn more.

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Looking for ways to lower your electricity bill?

Electricity customers across America are feeling the pinch of rising energy costs. According to the U.S. Energy Information Administration (EIA), the average electricity bill rose 13% from 2021 to 2022.

These cost increases have many people wondering how to lower their electric bills. The good news is that there are many ways to save on energy costs. From replacing your appliances to keeping them well-maintained, you can take simple steps to use less energy and save.

If you live in a deregulated market, one of the best ways to reduce your electric bill is to switch to a new provider and rate plan. Keep reading to learn more about your options, or enter your ZIP code to start comparing new plans.

Ways to save energy and lower your electric bill

Switch to a new provider

Lowering your energy usage is one way to save on your bills. But if you’re stuck in an energy plan with a high rate, your best option may be to find a new plan with a rate that works for you. Thinking about switching to a new plan or provider? Choose Energy can help you find cheap electricity near you. Just enter your ZIP code on this page to find electricity rates and plans in your area. You can also read more about switching energy plans below:

Choose a green energy plan

Choosing a plan powered by renewable energy could lower your monthly energy bills and reduce your environmental footprint. Green energy is becoming more accessible across the country — with Texas leading the nation in wind power and California topping the charts for solar. If you live in a deregulated area, chances are there’s a renewable energy provider near you.

Interested in learning more about renewable energy? Check out the following guides:

Invest in energy-efficient appliances

Your household appliances can help you save energy every day. Whether it’s choosing a smart thermostat, a high-efficiency washing machine, or LED lighting, Choose Energy has more information on how you can save with your appliances.

Choose a prepaid electric plan

With a prepaid electricity plan, you pay in advance only for the electricity you need. This pay-as-you-go option helps motivate consumers to use less energy, leading to a lower monthly energy bill. If you are interested in a prepaid energy plan, enter your ZIP code to find plans available in your area.

Perform regular home maintenance

You may be able to lower your electric bill by regularly maintaining your home to ensure it is working as efficiently as possible. Whether it’s changing your air filter or cleaning your HVAC unit, performing regular home maintenance can lead to energy savings year-round.

The following guides will help you understand how to maintain different home features:

FAQs about energy bills

Why is my electricity bill so high?

There are many reasons why your energy bill could be surprisingly pricey. With an electricity plan, you are charged for how much energy you use — measured in kilowatt-hours (kWh). For fixed-rate plans, the rate you pay per kWh stays the same. Under a variable-rate plan, that rate can change monthly based on the wholesale cost of energy. 

If your energy bill is higher than you expected, it may be because you are consuming more energy than you realize. Or, if you are enrolled in a variable-rate plan, it may be because energy demand went up, which led to an increase in the market cost of electricity. To learn more about reducing your electric bill, find our tips at the bottom of the page.

How can I understand my electricity bill?

The key to saving on your utility bill is to understand what your bill is telling you each month. We understand that reading your electric bill can feel confusing. That’s why we created this guide to understanding your energy bill, which includes a walkthrough of everything listed on your bill and what it means. When you know which items you can change, you have a better chance of lowering your electric bill.

How can I lower electricity delivery charges?

Electricity delivery charges (often called Utility Distribution Company or UDC charges on your bill) are fees from the utility that delivers electricity to your area. The state determines these charges, and everyone in the utility’s service area is charged the same amount, regardless of their provider. Unfortunately, this means you cannot lower the UDC charge on your bill.

How can I conserve electricity?

Lowering your energy consumption is one of the best ways to make your electricity bill cheaper. On this page, you’ll find our top five tips for saving energy, as well as resources to help you lower your utility bills.