Tracking and understanding your monthly electric and utility costs can feel overwhelming and confusing. Between rate hikes and seasonal fluctuations, predicting your monthly electricity costs can be challenging. Whether you opt for autopay for a convenient set-it-and-forget-it approach to paying your bills or meticulously track each bill as it comes in, we're here to demystify the average cost of electricity and other utility bills for essential services and help you manage your budget more effectively.

Electric Bills 

Your electric bills are likely to fluctuate based on season and your usage habits. While all utility costs play a role in growing concerns over the cost of living, fluctuations in electric bills can be a particularly significant concern. Luckily, this is one area where there are numerous ways to optimize your appliance usage to help you save.

However, before trying to reduce electricity costs, you will first have to figure out how different appliances factor into your electricity bill. Studying your monthly electricity bill is essential to reducing your carbon footprint and alleviating some financial stress.

What is the Average Electric Bill 

Let’s begin by answering the question: What is the average electric bill? According to the U.S. Energy Information Administration, the average residential rate for electricity in the United States is 16.68 cents per kilowatt-hour. The average monthly usage in the nation sits at around 899 kWh. Using these two figures, you can estimate the average cost of electricity each month to be around $149.95. Keep in mind that electricity rates vary significantly between states. Furthermore, seasonal usage habits, global supply chain issues, and other factors play a role in overall electric costs.

8 Factors Affecting Your Electric Bills

  1. Summer Season: Increased use of air conditioners and high-voltage generation sources.
  2. Demand and Supply: Global events like the Russia-Ukraine war can affect fuel prices and electricity costs.
  3. Plugged-In Appliances: Many appliances, known as “energy vampires,” consume energy even when powered off if they are plugged in.
  4. Old Appliances: Older appliances tend to be less energy-efficient compared to newer models.
  5. Locality: Electricity prices vary significantly by region and locality with residential areas seeing higher rates as compared to industrial areas.
  6. Charging Devices: Constantly charging multiple devices increases electricity usage.
  7. Insufficient Insulation: Poor insulation leads to wasted energy and higher energy costs, both in the summer and winter.
  8. Inefficient Light Bulbs: Switching to energy-efficient light bulbs will bring down electricity consumption and costs as a result.

How to Reduce Your Electricity Bill 

Taking steps to reduce your energy bills can help you lower your overall utility costs! Let’s explore some of the ways you can realize monthly electricity bill savings.

  • Use Solar Energy: One of the most tangible benefits of using solar energy is reduced electric costs. Solar panels enable you to generate your own electricity on-site without any external help or expenses. Unlike fossil fuels, it does not produce waste or cause contamination.
  • Change Your Supplier: Select an energy supplier with a robust fixed-charge plan to counter climatic, seasonal, or market fluctuations.
  • Temperature Adjustment: Heating and cooling appliances are major culprits in increasing your normal electricity bill. You can adjust the temperature of your refrigerator to around 38 degrees to eliminate extra energy consumption without compromising food safety. Lowering your water heater from 140 to 120 degrees can also help!
  • Power Strips and Dimmer Switches: Since modern appliances are never truly off, plug these devices into power strips to cut off the electric supply. A dimmer switch can add to the aesthetic appeal of your home while saving a significant amount of electricity.
  • Energy Audits: Seek expert recommendations on the average electricity bill and how to consume energy wisely. These experts have the knowledge and experience to help you understand your energy consumption. They can assist you in determining your electricity usage and provide advice on reducing your monthly bill.
  • Tap Into Community Solar with Nexamp: Community Solar helps you save money on electricity while also supporting clean, renewable energy generation. Learn more about solar energy savings through community solar and how you can sign up here.

Factors Influencing Your Monthly Utility Bills 

If you’re looking for insight into how to reduce your other utility costs and household bills, look no further. Although factors such as global supply chain problems, rising prices, and increased demand can cause significant changes, if you’re willing to be creative and proactive, you can take steps to reduce costs. Let’s begin by looking at the average cost of utility bills as a jumping-off point. 

The Average Cost of Bills Per Month 

Americans typically spend around $609.90 per month on utilities like water, gas, internet, phone, and electricity. Remember, this number is an average for the whole country in a year. The cost is likely to vary based on state and change depending on the season.

Seasonal Breakdown of Utility Costs 

Winter 

Residents in colder states often see an uptick in the cost of their utility bills in the winter. This is often a result of winter heating costs and rising heating bills. If you’re wondering, “How much does heat cost per month?” You’re not alone. Winter presents a distinct challenge for household heating expenses. According to the Energy Information Administration (EIA), United States households face costs between $120 and $322.2 in the winter, depending on the type of heating fuel used. On the bright side, these estimates are down 21% and 6%, respectively, from the previous winter!

Spring

Spring sees a natural decrease in the average cost of bills per month. The simple reason is that people no longer rely on running their heating systems to maintain comfortable temperatures all day. However, it still depends on where you live. Temperatures climb faster in southern states like Texas than in northern states like Michigan.

For example, April in Detroit sees temperatures ranging from 51 to 64 F. In contrast, Miami’s temperatures range from 81 to 83 F. Households in the northern parts of the nation will still see a far higher average cost of utilities per month to account for these differences.

Summer

Summer brings sweltering temperatures across much of the country, meaning households start running their air-conditioning systems round-the-clock. According to the EIA, approximately 87% of households use air-conditioning, which makes up a disproportionate portion of energy bills.Some states suffer more from this than others with the hottest states seeing the highest average bills in the summer.

It’s no surprise that the hottest states at this time of year see the highest average electric bill in summer.

Fall

Fall is another season that sees massive gaps in how much you can expect to pay to run your household. Northerners arelikely starting to crank their thermostats up, whereas residents in the southern states are more likely to run their air-conditioning systems still.

Electricity usage increases at this time of year as people spend more time indoors. Furthermore, there’s a high chance you’ll be using your car more often, so you’ll need to contend with rising

Additional Ways To Reduce Your Monthly Utility Bills 

  • Talk to a Professional: Avoid wasting energy by consulting a professional for home insulation tips to help ensure that your home is properly insulated. The United States Environmental Protection Agency (EPA) asserts that proper insulation can save you 15% on energy bills. Getting a home inspection can help you find where you are losing energy and make specific improvements.
  • Stop Energy Vampires: Unplug devices and appliances when not in use to avoid using unnecessary power. Home energy monitors like Sense can help you identify these energy vampires, allowing you to keep them unplugged and save on electricity.
  • Use Smaller Devices: Opt for energy-efficient devices for work and entertainment. Laptops use less energy than large desktop computers, and streaming through smaller devices like Roku or Apple TV is more energy efficient than using gaming consoles.
  • Upgrade Legacy Appliances: Replace your old appliances with newer, energy-efficient appliances. Many modern appliances come with eco-settings that can help you use less energy, making them a worthwhile long-term investment despite their initial cost.
  • Switch Out Old Light Bulbs: Replace your incandescent bulbs with LED bulbs which use significantly less energy and have a longer lifespan. LED bulbs can reduce energy consumption by 75% compared to incandescent bulbs. Learn more about energy-efficient lightbulbs here.
  • Replace Your Showerhead: Install a WaterSense-rated showerhead to reduce water usage without sacrificing your shower quality. This can help lower your water bill and contribute to overall household utility bill savings.
  • Crank Down the Thermostat: Adjust your thermostat by a degree or two to save on heating and cooling costs. Setting a programmable thermostat can prevent unnecessary energy use when you’re not home. Keep in mind that the most energy-efficient temperature for the thermostat is 68 degrees in the winter and 78 degrees in the summer.
  • Service Your HVAC System: Conducting regular maintenance of your HVAC system helps to prevent efficiency loss and unexpected breakdowns. This ensures that your system runs smoothly and reduces energy consumption.
  • Research Renewable Energy: Consider installing solar panels to generate your own electricity and reduce dependence on the grid. Solar panels can offer significant long-term savings and are supported by federal and state incentives.