Check out Choose Energy’s tips and tricks for lowering your energy bill
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Hot summer temperatures lead to increased demand for electricity and use of appliances such as air conditioners, fans, and refrigerators to stay cool. Higher energy demand increases strain on the energy grid, leading to higher electricity prices because utilities must generate more power to meet demand.
For example, in 2023, Houston experienced the hottest summer and highest energy demand on record at 85 gigawatts (GW). The average energy demand is usually 60 to 70 GW. As a result, the average electricity rate in Texas during the summer of 2023 averaged 14.15 cents per kilowatt-hour (kWh), an 18% increase in the summer electricity rates over two years.
But while summer energy rates can strain household budgets, there are several ways you can lower energy usage and save money on your electricity bill.
Reducing energy usage is the best way to lower summer electricity bills. The following energy-saving strategies can help you lower your monthly bills.
Regular air conditioning (AC) system maintenance ensures efficiency and reduces energy consumption. If your AC unit is blocked or inefficient, it must work harder to maintain indoor temperatures, resulting in higher energy consumption and expensive bills. Maintain your AC unit by regularly replacing air filters, checking for leaks, and hiring a professional for repairs when needed.
You can save 10% yearly on heating and cooling costs for your home by adjusting your thermostat based on the outdoor temperature. The closer your thermostat is to the outdoor temperature, the more you save.
When you’re away from home for the work day or for long periods like a vacation, adjust your indoor temperature to be warmer and readjust it when you get home. Consider installing programmable or smart thermostats for convenient and easy adjustments.
LED light bulbs consume significantly less energy and last longer than traditional light bulbs. They also generate less heat than other light bulbs, so your air conditioner won’t have to work as hard to keep your home cool. Switching to LED lighting helps lower energy consumption and save money on energy bills.
Fans are a great way to cool your home without relying on an air conditioner. Consider positioning fans near windows to circulate fresh air and provide a cooling effect. Also, adjust your ceiling fan settings to spin counterclockwise during the summer. This setting pushes cool air down to increase indoor comfort.
If you live in a deregulated energy market, you can choose your energy provider and electricity plan. You may be able to secure a lower fixed rate by shopping for electricity during mild seasons, like spring and fall. For the cheapest energy plan in your area, enter your ZIP code on Choose Energy and sort your options from low to high to explore the most up-to-date electricity rates.
Electricity rates vary by location due to fluctuating energy demand and transmission charges from your utility company. Fixed and variable rate plans are the most common plan types.
Fixed-rate plans charge the same rate each month, regardless of the market price. Choosing a fixed-rate plan provides a stable rate for predictable energy bills. Variable rate plans mean your electricity rate varies monthly based on the market rates. You may save money during low-demand periods but are subject to expensive prices when rates increase.
If you live in a state with extremely hot temperatures, like Texas or other southern areas, a fixed-rate plan can protect you from rate spikes during the summer, help you stay on budget, and avoid surprises on your energy bills.
Enter your ZIP code and lock in low electricity rates in your area.
Electricity rates are typically cheaper during the spring and fall due to mild temperatures and lower energy demand.
The average summer electric bill in the U.S. for 2023 was about $144.33 per month, according to the latest Energy Information Administration (EIA) data.
Use energy-saving habits, like regularly adjusting your thermostat, maintaining your AC system, installing LED light bulbs, and using fans to cool your home. If you’re signing up for a new electricity plan or switching providers, use the Choose Energy marketplace to search and compare the cheapest rates.
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