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How to Lower Your Electric Bill This Winter: 5 Steps That Actually Work

Electric-heated homes are expected to pay about $1,196 this winter, up 4%. Free and cheap ways to cut your heating bill, from thermostat setbacks to sealing drafts.

By Clickzyo StaffNovember 9, 20263 min read

A person adjusting a smart thermostat at home. Photo: Shixart1985 / Wikimedia Commons, CC BY 2.0

The fastest wins are free: turn your thermostat down 7–10°F while you sleep or are away, seal drafts around doors and windows, and stop heating water and rooms you don't use. The U.S. Department of Energy says the thermostat trick alone can cut heating and cooling costs by as much as 10% a year.

This matters more than usual this winter. The U.S. Energy Information Administration (EIA) expects homes that heat mainly with electricity to spend about $1,196 from November to March, up 4% from last winter, because power prices are rising about 3%. Here is a simple plan, from free fixes to cheap upgrades.

How much will heating cost this winter?

EIA's Winter Fuels Outlook, published October 6, 2026, gives these averages for November through March, by a home's main heating fuel:

Electricity: about $1,196, up 4%. The West could see a 9% jump because of a colder forecast.
Natural gas: about $640, down 9%.
Propane: about $1,246, down 3%.
Heating oil: about $2,115, up 21%, mostly in the Northeast.

These are national averages. Your bill depends on your home's size, insulation and local rates, and a colder-than-expected winter would push them higher.

1. Turn the thermostat back (free)

The Department of Energy suggests about 68–70°F while you're awake and at home, and lower while you sleep or are out. Setting it back 7–10°F for 8 hours a day can save as much as 10% a year. A programmable or smart thermostat does this for you automatically.

One caution: if you have a heat pump, DOE says to use a thermostat made for heat pumps before doing deep setbacks, or the backup heat can kick in and cost you more.

2. Seal the drafts (under $30)

Air leaks are among the biggest sources of wasted heat. DOE says sealing them with caulk and weatherstripping can save 10%–20% on heating and cooling bills. Check these spots first:

Door frames and the gap under exterior doors
Window frames
The attic hatch
Where pipes, vents and wires go through walls

A cheap trick: on a windy day, hold a lit incense stick near a window edge. If the smoke wavers, you've found a leak.

3. Heat the people, not the whole house

Close doors and vents to rooms nobody uses (but don't block vents on heat pump systems without checking the manual).
Open curtains on sunny south-facing windows during the day, and close them at night.
Use a ceiling fan on low, spinning clockwise, to push warm air down.

4. Check the water heater

Many water heaters ship set at 140°F. DOE recommends 120°F for most homes, which still gives hot showers while cutting standby heat loss. Shorter showers help too.

5. Small upgrades that pay back fast

LED bulbs: winter means more hours of lighting, and ENERGY STAR LEDs use far less power than old bulbs.
Furnace or heat pump filter: a clogged filter makes the system work harder. Check it monthly in winter.
Smart plugs or power strips: cut "phantom" power from TVs, consoles and chargers that stay on standby.

Want a step-by-step DIY guide?

If you'd rather follow one plan than piece tips together, Energy Revolution System (#ad) is a $39 one-time digital guide about cutting home power bills with DIY projects. It comes with 4 bonus guides and the seller offers a 60-day money-back guarantee through ClickBank.

Be realistic: it's an ebook, not a device. Savings depend on your home and how much of it you actually do, and the free steps above are where most people should start. We earn a commission if you buy through our link, at no extra cost to you.

Preparing for winter outages too? See how much water to store: our emergency water storage guide.

If you only do one thing

Start with the free stuff this week: thermostat setback, draft sealing and the water heater. Those three alone can make a real dent in a winter bill that EIA expects to be higher for electric-heated homes. If your bill is still hard to pay, call your utility and ask about budget billing or assistance programs before you fall behind.

Keep reading: heading into the holidays? See how to pay for Christmas without going into credit card debt. More practical guides are in our Money section, and the latest US stories on our news page.

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