Short answer: heating and cooling make up almost half of a typical home’s energy bill, or more than $900 a year, according to ENERGY STAR. The cheapest winter savings come from the thermostat, drafts and attic insulation. The 12 moves below are ordered from free to “worth a weekend”.
Free changes (do these today)
- Set the thermostat to 68°F when you’re home and awake. The Department of Energy says turning it down 7-10°F for eight hours a day (while you sleep or are out) can save up to 10% a year on heating and cooling (energy.gov).
- Have a heat pump? Skip deep setbacks. Big temperature jumps can trigger backup “aux” heat, which costs about 2 to 5 times as much to run, according to Jackson EMC. Keep a steady setting and raise it no more than 2 degrees at a time in deep cold.
- Kill standby power. Devices that sit on standby use 5-10% of a home’s energy and can add more than $100 a year (DOE and Berkeley Lab, via PBS). Put the TV, game console and chargers on a power strip you switch off.
- Use cheap hours if your plan has them. On a time-of-use plan, run the dishwasher, laundry and EV charging after the peak window ends.
Cheap fixes (under $50)
- Seal drafts. Weatherstripping doors and caulking gaps around windows, baseboards and outlets can save 10-20% a year on energy, according to the DOE’s home energy assessment guide.
- Change the furnace or heat pump filter. A clogged filter makes the blower work harder. The DOE suggests checking it every one to two months in heavy-use season.
- Swap the last old bulbs for LEDs. LEDs use at least 75% less energy than incandescent bulbs and last up to 25 times longer (energy.gov). Lighting is about 10% of a typical electric bill.
- Close curtains at night, open them on sunny days. Windows account for more than 30% of a typical home’s heating losses (energy.gov).
Weekend projects (bigger savings)
- Add attic insulation and air seal the attic floor. EPA estimates sealing and insulating saves an average of 15% on heating and cooling costs (ENERGY STAR).
- Install a smart thermostat. ENERGY STAR certified models save about 8% on heating and cooling, roughly $50 a year. See our guide to smart thermostat savings.
- Add low-e storm windows instead of replacing old windows. DOE field tests found they cut heating and cooling costs by 12-33%.
- Book a free or low-cost energy assessment. Many utilities offer one; the auditor finds hidden air leaks with a blower door test.
What it adds up to
Using ENERGY STAR’s figure of about $900 a year for heating and cooling, here is what the main moves are worth. Savings overlap, so don’t add them all together.
| Move | Typical saving | Per year on $900 heating and cooling |
|---|---|---|
| Thermostat setback (not heat pumps) | up to 10% | up to $90 |
| Smart thermostat | about 8% | about $50 (ENERGY STAR estimate) |
| Air sealing and insulation | about 15% | about $135 |
| Killing standby power | 5-10% of all home energy | $100+ (whole bill) |
A household that does the free and cheap steps can realistically trim $100 to $250 a year without buying new equipment. For the bigger picture on prices, read why electricity bills keep rising.
FAQ
Is it cheaper to leave the heat on all day? For furnaces and boilers, no: setting back saves energy. For heat pumps, a steady moderate setting is usually cheaper.
Do space heaters save money? Only if you heat one room and turn the whole-house heat down. See what a space heater costs to run.
What’s the single best upgrade? For most older homes, air sealing plus attic insulation.