How to Save Electricity at Home and Cut Your Bill

Heating, cooling and hot water use the most electricity in most homes, so small changes there save more than anything else. Here is how to find your biggest costs and cut them.

By Trends Editorial

Published 4 min read

In brief

Where home electricity actually goes, how to work out what any appliance costs to run, and the changes that save the most, from heating and cooling to lighting, laundry, standby power and tariffs.

The short answer

The biggest savings come from the biggest users:

  1. Heating and cooling: set the thermostat or air conditioner a degree or two more economically, use timers, and seal draughts.
  2. Hot water: wash clothes in cold water, take shorter showers, and lower the water heater temperature if it is very high.
  3. Fridges, freezers and dryers: keep them efficient, or air-dry clothes.
  4. Lighting and standby: switch to LEDs and turn things off at the wall.
  5. Your tariff: use cheaper off-peak hours if your plan has them.

Work out what an appliance costs to run

You can calculate the cost of any appliance:

Cost = watts × hours used ÷ 1,000 × price per kWh

  • Watts are on the appliance's label or in the manual.
  • Price per kWh (kilowatt-hour, or "unit") is on your electricity bill.

Example: a 1,500 W electric heater used 4 hours a day, at 0.20 per kWh: 1,500 × 4 ÷ 1,000 = 6 kWh a day. 6 × 0.20 = 1.20 a day, or about 36 a month.

An LED bulb of 9 W on for 5 hours a day uses 0.045 kWh, which costs less than 0.01 a day at the same price. This kind of sum shows where to focus. A plug-in energy monitor, available cheaply, measures real use.

Heating and cooling

  • Air conditioning: each degree warmer you set it saves energy. Many energy agencies suggest around 24 to 26°C for comfort and efficiency. Clean the filters regularly; clogged filters make units work much harder.
  • Use fans alongside or instead of AC. A ceiling or pedestal fan uses a fraction of the power, and moving air feels cooler.
  • Block the sun with curtains, blinds or reflective film on hot days. Open windows at night when it is cooler outside.
  • Heating: turn the thermostat down by a degree, heat only the rooms you use, and use timers so you are not heating an empty home.
  • Seal draughts around doors and windows with low-cost strips, and close curtains at night in winter.
  • Insulation, where possible, is one of the best long-term investments.

Hot water

  • Wash clothes at 30°C or in cold water. Heating water is most of a washing machine's energy use, and modern detergents work well at low temperatures.
  • Shorter showers and an efficient showerhead.
  • Check your water heater setting. If it is set very high, lowering it saves energy, but keep stored hot water hot enough to prevent bacteria growth, around 60°C for tank systems.
  • Fix dripping hot taps.

Kitchen

  • Fridge and freezer: keep the fridge at about 3 to 5°C and the freezer at −18°C. Colder wastes energy. Keep the door seals clean and tight, defrost freezers that ice up, and leave a gap behind for ventilation.
  • Cook efficiently: match the pan to the hob size, keep lids on, and use a microwave, pressure cooker, slow cooker or air fryer for small portions instead of the full oven.
  • Boil only the water you need in the kettle.
  • Run the dishwasher full, on eco mode.

Laundry

  • Full loads in the washing machine.
  • Air-dry clothes whenever possible. A tumble dryer is one of the most power-hungry appliances in many homes.
  • If you use a dryer, clean the lint filter every time and spin clothes at a high speed first.

Lighting and electronics

  • Switch to LED bulbs. They use at least 75 percent less energy than incandescent bulbs, according to the US Department of Energy, and last far longer.
  • Turn off lights in empty rooms.
  • Cut standby power: switch off TVs, consoles, set-top boxes, speakers and computers at the wall, or use a power strip.
  • Use power-saving settings on computers, TVs and game consoles.
  • Unplug chargers you are not using.

Your tariff and meter

  • Check your tariff. Some plans charge less at night or off-peak. Run washing machines, dishwashers and water heaters then, if your plan rewards it.
  • Understand slabs or tiers. In some countries, including Pakistan, the price per unit rises once you pass a monthly threshold, so cutting a few units can lower the whole bill. Our Pakistan electricity bill guide explains how slabs work there.
  • Read your meter regularly to spot unusual use, which can mean a faulty appliance.

When buying new appliances

  • Check the energy label and compare annual running costs, not just the price.
  • Choose inverter models for air conditioners and fridges, which adjust their power instead of switching fully on and off.
  • Size appliances correctly. A huge fridge or an oversized AC unit wastes energy.
  • Consider solar if you own your home and the payback suits you. Our solar panel guide for Pakistan covers costs there.

Key takeaways

  • Heating, cooling and hot water are usually the biggest costs; start there.
  • Cost = watts × hours ÷ 1,000 × price per kWh.
  • Wash cold, air-dry, use LEDs and switch off standby.
  • Check your tariff for off-peak hours or slab thresholds.

Questions readers ask

What uses the most electricity in a home?

In most homes, heating and cooling use the most, followed by water heating if it is electric. After that come the fridge and freezer, laundry and dryers, cooking, lighting and electronics. The exact order depends on your climate and appliances.

Does turning appliances off at the wall save money?

Yes, a little. Many devices draw standby power when switched off, such as TVs, set-top boxes, game consoles, chargers and microwaves. Individually it is small, but across a home it adds up. Switch off at the wall, or use a power strip, for devices that do not need to stay on.

Is it cheaper to leave the air conditioner on all day?

Usually not. Turning it off or up when you are out for several hours generally uses less energy than keeping the home cool, even though it works harder to cool down again. Modern inverter units are efficient at holding a temperature, so use a timer or schedule to cool the home shortly before you return.

Are LED bulbs really worth it?

Yes. LED bulbs use at least 75 percent less energy than old incandescent bulbs and last many times longer, according to the US Department of Energy. They pay for themselves quickly, especially in lights that are on for several hours a day.

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