3 Great Ways to Save on Your Electric Bill

We all want to save more money. But often, we don’t realize the smallest changes can make a different. With that, here are 3 great ways to save on your electric bill!

I’m not going to lie; my electric bill is pretty low most of the year (see below).

One of the major reasons my electric bill is so low is that I live in a studio apartment. A downsized living space means lower electric usage (most of the time).

While living a minimalist lifestyle may not be for everyone, there are many things you can do to save on your electric bill regardless of the size of your dwelling.

The average American residential electric bill is $117.46 per month. That adds up to over $1,400 per year.

However, the cost of electricity varies by region.

Here in Queens NY, the average user spends about $249 per month on their electric bill. That is about $3,000 per year on electric bills!

Your electric bills can take a huge bite out of your wallet. This can be changed.

So, let’s get started!

Don’t forget to Subscribe for more content and updates on my financial journey!

1) Turn Off the Lights!

This is probably the easiest one. Simply turning off the lights will save you money on your electric bill.

Lots of people simply live lights on in rooms that are unoccupied. All of that is money poured down the drain.

The average price people in the USA pay for electricity is 15.4 cents per kilowatt as of 2022. Here in New York, the average is 21.4 cents per kilowatt.

While you won’t become rich by turning off lights, you can potentially save a couple hundred dollars per year. And who wouldn’t want a couple hundred dollars extra?

Lighting accounts for approximately 20% of your electric bill and with the average American household having 40 light bulbs, that means up to $200 per year is spent on lighting.

So, the best thing you could do it turn off the lights when they are not needed.

2) Unplug Appliances / Get Rid of Old Ones!

Some things are best left unplugged.

Many times, we leave appliances plugged in. However, although they are turned off, they still use electricity just by being plugged in.

Appliances such as microwaves, televisions, printers, laptops, coffeemakers, etc., even when they are turned off, they still consume electric power 24 hours a day.

This is called “standby power”.

Standby power is estimated to account for 5-10% of resident energy usage and can add an extra $100 per year to your electric bill.

While some appliances can’t be unplugged, such as your refrigerator, most of them can be.

Do you really need your microwave to tell you the time? Do you need your printer to remind you 24 hours a day that you are low on ink?

If not, then why not unplug appliance not in use?

Another way to save it getting rid of old appliances that act as energy hogs. Replace them with newer more energy efficient models.

For example, a 20-year-old refrigerator uses more electricity than a newer model of similar size and make. By replacing that old fridge, you could save up to $200 per year in electrically costs.

3) Have the Electric Company Pay You!

What? How is that possible? Okay, hear me out.

Suppose you invested some of your money in your utility company and that company paid you a cash dividend every few months?

There you go. You are now being paid by the electric company to use their product.

Almost like you are getting electricity for free!

For example, Con Edison (ED) is the utility company that provides me with electricity and bills me each month as such.

In March 2022, my electric bill came to $30.60 (yes, it’s that low most of the year). That same month Con Edison paid me a dividend of $67.94!

That completely covered my electric bill with enough left over to cover April’s bill!

I own 86 shares of ED in my portfolio. Thus, I receive $271.76 in dividend income yearly from ED.

So, you can say for more then 6 months of the year, I am getting free electricity since ED pays me a dividend that covers more than half my electric bills!

Conclusion

So, there are 3 great ways to save on your electric bill.

You can put a dent in your electric bills just by turning the lights off, unplugging appliances, and getting rid of old ones.

If you want to take it to the next level, consider investing in your utility company, especially if they pay a dividend that will cover your expenses.

Imagine when your family or friends ask “How much do you pay on your electric bill each month?”

And you turn around and tell them; “The electric company pays me!”

Should be an interesting expression on their face.

So, what do you think of this post? Got any good tips or ways of reducing the electric bill? Let me know in the comments below!