The heat is on. Forecasts predict hotter-than-average temperatures across the U.S. this summer, with extreme heat likely in the Northeast and West, according to the National Oceanic and Atmospheric Administration. At the same time, electricity costs will hit a record 12-year high, says the National Energy Assistance Directors Association. The double whammy of soaring heat and electricity costs means you’ll want to know your options for how to use less electricity and cut your electric bills while keeping your home cool.
Why Are Electric Costs So High?
Basic economics says higher temps increase demand for electricity to run your air conditioning and blow your fans, leading to higher prices. Experts mention other possible culprits: energy companies covering capital expenditures to improve delivery infrastructure, more data centers consuming electricity, and tax cuts ending for alternative energy sources, placing more demand on fossil-fuel-powered plants.
Interpreting Your Electric Bill
Your electric bill shows the amount you’re paying to connect to the electrical grid, transmission fees, and various surcharges, along with the price of your electricity use per kilowatt hour (kWh). The average U.S. household uses 855 kWh of electricity per month, with an average price of 16.44 cents per kilowatt, according to the U.S. Energy Information Administration.
From June 2025 through September 2025, the average electric bill in the U.S. will be $787, up from $737 last summer and $660 only three summers ago, according to NEADA’s 2025 Summer Residential Cooling Outlook.
How to Use Less Electricity to Cut Bills and Cool Your Home
More than half of our energy use comes from cooling and heating, with about 18% of annual household electricity going to air conditioning, according to the EIA. As of 2020, 89% of U.S. homes used some type of air conditioning, and 67% have installed central air conditioning, according to the Environmental Protection Agency.
Here are 15 tips, listed from no-cost to higher-cost ideas, to cut your electric bill while cooling off:
Electricity Savings Tip 1: Manage Peak Demand
“Check your utility company’s rates,” says Sam Gluck, master electrician and vice president and partner at APCO Electric in Denver. “During peak demand, where I live, our energy company charges three to four times the typical kilowatt cost. Choose when you want to consume power.”
Electricity Savings Tip 2: Change Your Thermostat Settings
“This will depend, in part, on the region of the country you live in,” says Mark Wolfe , executive director of NEADA. “In states with very high summer temperatures, it’s recommended to keep your AC/thermostat between 70 degrees Fahrenheit and 78 degrees when people are at home, and to keep the AC/thermostat at 78 degrees when the house is empty. The utility company Carolina Comfort notes that for every degree increased between those two temperatures, you will save 3% on your electric bill.”
Electricity Savings Tip 3: Run Fridge and Freezer at Recommended Temps
“Running them at cooler temperatures might seem like a good idea in the summer, but that can drive up electricity costs and potentially wear out the electrical appliance,” Wolfe says.
Electricity Savings Tip 4: Clear Debris from Your HVAC System
Make sure nothing blocks the airflow from the system’s condenser. “That will affect how efficiently the unit can run, which will then affect energy usage,” Wolfe says.
Electricity Savings Tip 5: Close Indoor Window Coverings During the Day
Close your blinds or curtains to keep the cooler air inside during the day. If temperatures are low enough at night and the air quality is healthy, keep windows open for natural cooling.
Electricity Savings Tip 6: Follow Air Sealing Best Practices
“You want a tight building envelope [the building components that separate the indoors from the outdoors] and good ventilation, regardless of whether it’s heating or cooling season,” says Matt Daigle, CEO and founder of Rise, an online home improvement store focused on sustainability. Install door sweeps at the base of all doors from the interior of your home to the exterior and make sure all windows have functioning weatherstripping and all possible seams, cracks, and openings are sealed.
Electricity Savings Tip 7: Use Ceiling and/or Floor Fans
Fans don’t lower the temperature, but they do blow air across you, making you feel cooler. Running the fan counterclockwise in the summer pushes cooler air down.
Electricity Savings Tip 8: Change Your Air Filter Regularly
Wolfe says the frequency will depend on which type of filter and which type of thermostat/AC your home has, “but during the summer it should be monthly for most homes.”
Electricity Savings Tip 9: Schedule HVAC Maintenance to Boost Efficiency
A clean drain pan and clean drain line mean the unit will run more efficiently, so right before summer starts is the optimal time for maintenance. Have a professional check your ductwork for leaks and tears in the HVAC system.
Electricity Savings Tip 10: Reduce Solar Heat by Changing Window Treatments
In cooling seasons, about 76% of sunlight that falls on standard double-pane windows enters to become heat, according to the Department of Energy. Cellular shades can reduce unwanted solar heat through windows by up to 60%, reducing the total solar gain to 20% when installed with a tight fit.
Electricity Savings Tip 11: Use a Dehumidifier in Damp Rooms
It’s especially effective in rooms like the basement and bathrooms, Wolfe says. “The more humid your home is, the warmer you will feel.”
Electricity Savings Tip 12: Upgrade to a Thermostat That's Easy to Program
Choose a smart thermostat or one that makes programming the HVAC system easier. “This could be a low-cost option for some people, but it may be costly due to the type of AC their home has and if it’s compatible with the newer technology,” Wolfe says.
Electricity Savings Tip 13: Boost Attic Insulation
Upgrade at a minimum of R-38, Wolfe says. Insulation is like your favorite insulated travel mug: It keeps hot contents hot and cold contents cold.
Electricity Savings Tip 14: Upgrade Your HVAC or AC System
“Choose devices with a high ENERGY STAR rating or switch entirely from window AC units to central air,” Wolfe advises. Although window units concentrate cool air in specific rooms, if they’re not installed properly, they allow heat in along the edges. New products are available that offer a different configuration and a tighter seal. Or install a heat pump — a device that heats and cools.
Electricity Savings Tip 15: Consider the Exterior
Install exterior shading, such as awnings and eaves, along the house, especially where there are windows. Plant deciduous shade trees along the south and west sides of the home.
What Electricity Costs Could You Be Overlooking?
Know how many devices you have. “Anything plugged in is drawing electricity,” Gluck says. Think about the iPhone charger that’s always plugged in, appliances, computers, and printers. “These are all consuming power even if they’re turned off,” Gluck says.
This “phantom energy” or “vampire power” can add up to 20% to your monthly electric bill. To help you figure how much electricity you’re using, you could buy an energy monitoring device that hooks up to your electrical panel and shows in real time where your biggest draws are coming from, Daigle says. You can buy an energy monitoring device at a hardware store for $20 to $50.
You could also unplug the devices you aren’t using or use power strips with a switch to turn off several devices at once. A smart plug allows you to use a phone app to help you turn gadgets on and off and monitor energy use.
Cut Electric Costs Long Term
Now’s the time to start preparing not only for this summer but for long-term extreme weather. Your cooling and heating system go hand in hand.
If you’re creating a more energy-efficient home and thinking of selling, you just may get a return on your investment. A 2022 report by Freddie Mac showed that more energy-efficient and higher-performance homes sold for 3% to 5% more than lesser-rated homes.