How to Lower Your Electric Bill: 12 Practical, Sourced Ways
Practical ways to lower your electric bill, from free thermostat and standby-power fixes to LEDs, insulation and rate plans, each backed by DOE, EPA or EIA guidance.
A electric water heater typically draws 4,500–5,500 W. At the US average residential rate of 18.16¢ per kWh (12-month average to August 2026), that is about $0.82–$1.00 for every hour it runs at full power.
Typical range for a 40-gallon tank. The elements cycle, so hours of actual heating are fewer than hours of hot-water availability.
| Use per day | kWh per day | Cost per day | Cost per month |
|---|---|---|---|
| 1 hour | 4.50–5.50 | $0.82–$1.00 | $24.86–$30.38 |
| 2 hours | 9.00–11.00 | $1.63–$2.00 | $49.72–$60.77 |
| 4 hours | 18.00–22.00 | $3.27–$4.00 | $99.44–$121.53 |
| 8 hours | 36.00–44.00 | $6.54–$7.99 | $198.87–$243.07 |
Scenarios show full-power hours. Appliances with thermostats or cycling compressors draw full power for only part of the time they are switched on.
| State | Rate (12-mo) | Cost per hour |
|---|---|---|
| Alabama | 16.44¢ | $0.74–$0.90 |
| Alaska | 26.94¢ | $1.21–$1.48 |
| Arizona | 15.39¢ | $0.69–$0.85 |
| Arkansas | 13.57¢ | $0.61–$0.75 |
| California | 32.34¢ | $1.46–$1.78 |
| Colorado | 17.17¢ | $0.77–$0.94 |
| Connecticut | 27.42¢ | $1.23–$1.51 |
| Delaware | 17.98¢ | $0.81–$0.99 |
| District of Columbia | 24.48¢ | $1.10–$1.35 |
| Florida | 15.41¢ | $0.69–$0.85 |
| Georgia | 15.17¢ | $0.68–$0.83 |
| Hawaii | 44.27¢ | $1.99–$2.43 |
| Idaho | 12.77¢ | $0.57–$0.70 |
| Illinois | 18.91¢ | $0.85–$1.04 |
| Indiana | 16.90¢ | $0.76–$0.93 |
| Iowa | 14.20¢ | $0.64–$0.78 |
| Kansas | 15.13¢ | $0.68–$0.83 |
| Kentucky | 13.94¢ | $0.63–$0.77 |
| Louisiana | 13.02¢ | $0.59–$0.72 |
| Maine | 29.60¢ | $1.33–$1.63 |
| Maryland | 21.18¢ | $0.95–$1.16 |
| Massachusetts | 30.39¢ | $1.37–$1.67 |
| Michigan | 21.28¢ | $0.96–$1.17 |
| Minnesota | 16.28¢ | $0.73–$0.90 |
| Mississippi | 14.85¢ | $0.67–$0.82 |
| Missouri | 13.97¢ | $0.63–$0.77 |
| Montana | 13.94¢ | $0.63–$0.77 |
| Nebraska | 12.74¢ | $0.57–$0.70 |
| Nevada | 13.45¢ | $0.61–$0.74 |
| New Hampshire | 26.95¢ | $1.21–$1.48 |
| New Jersey | 23.74¢ | $1.07–$1.31 |
| New Mexico | 16.51¢ | $0.74–$0.91 |
| New York | 28.60¢ | $1.29–$1.57 |
| North Carolina | 14.79¢ | $0.67–$0.81 |
| North Dakota | 12.35¢ | $0.56–$0.68 |
| Ohio | 18.41¢ | $0.83–$1.01 |
| Oklahoma | 13.81¢ | $0.62–$0.76 |
| Oregon | 15.53¢ | $0.70–$0.85 |
| Pennsylvania | 20.86¢ | $0.94–$1.15 |
| Rhode Island | 29.44¢ | $1.32–$1.62 |
| South Carolina | 15.77¢ | $0.71–$0.87 |
| South Dakota | 14.28¢ | $0.64–$0.79 |
| Tennessee | 13.61¢ | $0.61–$0.75 |
| Texas | 15.98¢ | $0.72–$0.88 |
| Utah | 13.26¢ | $0.60–$0.73 |
| Vermont | 23.90¢ | $1.08–$1.31 |
| Virginia | 16.64¢ | $0.75–$0.92 |
| Washington | 14.20¢ | $0.64–$0.78 |
| West Virginia | 15.53¢ | $0.70–$0.85 |
| Wisconsin | 18.79¢ | $0.85–$1.03 |
| Wyoming | 14.01¢ | $0.63–$0.77 |
Calculate with your own numbers
A typical electric water heater uses 4,500–5,500 W, according to Virginia Cooperative Extension. Check the label on your model.
About $0.82–$1.00 per hour at full power, at the US average rate of 18.16¢ per kWh.
Running it 1 hour a day at full power costs about $24.86–$30.38 a month at the US average rate. Your cost depends on your hours and your state's rate.
About 4.50–5.50 kWh per hour at full power (watts ÷ 1,000).
Check the rating label or manual, or measure it with a plug-in electricity usage meter, which shows real watts and kWh.
Rates: EIA, 12-month residential average. Cost = watts × hours ÷ 1,000 × rate (US Department of Energy method).
Practical ways to lower your electric bill, from free thermostat and standby-power fixes to LEDs, insulation and rate plans, each backed by DOE, EPA or EIA guidance.
Standby or phantom power can make up 5–10% of home energy use, per DOE. Learn how to measure it, calculate its cost and cut it.
Estimate the cost to run a window or central air conditioner using published wattages and the DOE formula: watts × hours ÷ 1,000 × your rate.