If you want to know how to lower your electricity bill, start with measurement and finish with equipment. The free steps often save more than people expect, and the costly steps pay back only when your use is high enough. This guide ranks the options from least to most effort and gives a worked example for each, using an electricity price of 0.28 per kWh.
In this guide
- Step 1: find out where the electricity goes
- Step 2: check the tariff
- Step 3: cut standby and always-on power
- Step 4: change how and when you use heat
- Step 5: shift flexible use to cheap hours
- Step 6: swap the worst lighting
- Step 7: replace the oldest big appliance
- Step 8: generate your own
- A short order of work
- Frequently asked questions
Step 1: find out where the electricity goes
You cannot cut what you have not measured. Read your meter at the same time for a week to see your daily use, and use the appliance running cost calculator for the big items. A plug-in energy meter shows the real use of any appliance. In most homes, heating, hot water, cooking, refrigeration and any electric car account for most of the bill, and lighting and small devices for less.
Step 2: check the tariff
The unit rate and the standing charge decide what each kWh costs. The electricity bill calculator shows the effective price. At 250 kWh a month, a tariff with 0.28 per kWh and 0.45 per day costs 83.69 a month, or 0.335 per kWh. A tariff at 0.26 per kWh with a 0.60 daily standing charge costs 65.00 + 18.25, which is 83.25. The two are almost the same, even though one looks cheaper on the unit rate. Compare totals at your own use, and check exit fees before you switch.
Step 3: cut standby and always-on power
A device that draws 10 W all year uses 87.6 kWh, costing 24.53. A home with five such devices can spend over 100 a year on power that does nothing useful. Switch off the ones you do not need, such as a second television, a printer or a games console, with a smart plug or a power strip. Keep the router and the fridge on.
Step 4: change how and when you use heat
Heating and hot water are the largest loads for many electrically heated homes. Lower the thermostat by one degree, use timers, and heat water only when you need it. A 2,000 W portable heater used four hours a day for 120 days costs about 161 at 60 percent duty. If you replace it with better insulation or a heat pump, the saving can be much larger. The guide to leaving the heating on all day explains how setback works.
Step 5: shift flexible use to cheap hours
If your tariff has a cheap period, run the washing machine, dishwasher and car charger then. An electric car charged overnight at 0.16 instead of 0.28 saves about 340 a year at 2,833 kWh. The guide to time-of-use tariffs gives the break-even test for deciding whether such a tariff suits you.
Step 6: swap the worst lighting
LED bulbs save the most where old halogen spots are on for hours. Ten 50 W halogens replaced by 5 W LEDs, lit three hours a day, save about 138 a year for 40 of bulbs. In rooms where lights are on rarely, wait for the old bulb to fail. The LED savings calculator shows your case.
Step 7: replace the oldest big appliance
A fridge-freezer that is 15 years old can use twice as much as a new one. At 460 kWh a year, a fridge-freezer costs about 129. A new one using half that saves 64 a year, so replacement pays back slowly unless the old unit is failing. Check the energy label and use a plug-in meter to see the real figure before you decide.
Step 8: generate your own
Solar panels have the largest upfront cost and the largest long-term effect. The payback depends heavily on how much of the output you use yourself, from about 14 years at 20 percent self-use to about 7 years at 60 percent in the worked example. Run the numbers with the solar panel payback calculator using quotes for your roof.
A short order of work
| Step | Typical effort | Typical result |
|---|---|---|
| Measure with a plug-in meter | An afternoon | Tells you what to fix |
| Check the tariff | An hour | Can matter most, or not at all |
| Cut standby | Minutes | Tens of euros a year |
| Adjust heating | Minutes | Depends on heating type |
| Shift use to cheap hours | Setup once | Large with an EV |
| LED swap in busy rooms | A weekend | Around 14 per bulb per year for halogens |
| Replace an old appliance | Cost of the appliance | Slow payback |
| Solar | Large investment | Long-term, depends on self-use |
Frequently asked questions
What uses the most electricity at home?
Electric heating, hot water, cooking and refrigeration are common leaders, and an electric car adds a lot. Measure rather than guess.
Does unplugging chargers save money?
A little. Phone chargers draw very little when nothing is attached, so the saving is small. Larger devices on standby matter more.
Is a more expensive appliance worth buying for the energy label?
Compare the yearly energy cost of the two models and the price difference. If the saving repays the difference within a few years, it is worth considering.