The cost of living weighs heavily on American households. If you’re wondering whether your bills have skyrocketed, the answer is a resounding yes. Estimates vary, but the average American household has seen a 6% increase in household bills in the last year.
The average cost of bills per month has increased due to factors outside your control. Global supply chain issues, rampant inflation, and the war in Ukraine have led to utilities soaring. You need to get creative if you want to bring those numbers down.
The Average Cost of Bills Per Month: By Season
Today, Americans spend $5,577 per month to cover all household expenses, including mortgages, utilities, gas, groceries, and more. The average bill cost per month has risen due to inflation, alongside interest rate increases. These rising costs significantly influence your household bills.
The average cost of heating per month is one area many Americans continue to grow concerned about, and for a good reason. It’s hard to predict how much your bill will be each season. For example, nearly half of all U.S. households use natural gas. The average natural gas usage per month is expected to stay the same, but this winter, the costs of heating your home will rise by 28%.
To help you prepare for what’s to come, here’s a breakdown of the average cost of bills per month, split into seasons.
Winter
If you’re asking, “How much does heat cost per month?” you’re not alone. Winter always represents the most significant challenge for households trying to stay warm. In 2022, this has only amplified.
According to the Energy Information Administration, U.S. households face an average power bill of $1,359 this winter. Most of this spike has been driven by higher global prices for natural gas. However, if you heat your home with oil, you can expect an average bill of $2,354.
Homes within the Northeastern United States are likelier to heat their homes with oil, meaning this region will feel this increase even more. If you live in a newer home, there’s a good chance you use electricity for heating purposes. While not as costly as natural gas or oil, prices are expected to surge by 10% for electricity.
However, the U.S. is so vast that many people might avoid the pain by migrating south for the winter. Several states, including California, Arizona, and Florida, have huge snowbird communities, enabling them to avoid high heating costs.
Some examples of major cities and their average temperatures during December, January, and February include:
- Miami, FL – 70 F
- Tampa, FL – 64 F
- Los Angeles, CA – 58 F
- San Diego, CA – 58 F
- Phoenix, AZ – 57 F
- New Orleans, LA – 56 F
While these cities tend to be warmer in the colder months compared to other parts of the country, it doesn’t mean you won’t see increases on your average gas bill in winter. Even the snowbird states can get cold at night.
One estimate said that Floridians previously paying $120.67 for 1,000-kilowatt hours in 2022 will pay $130.23 for those same kilowatts in 2023.
Either way, what’s clear is winter will be a challenging time for millions of American households who haven’t seen their salaries increase in line with inflation.
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.
Naturally, some of these differences begin to equalize as May and June hit, but variations depend on the year.
Summer
Summer is an interesting season because of the number of factors involved in determining the average cost of bills per month.
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.
Take Alabama as an example. The summer season brings hordes of mosquitoes, with air-conditioned rooms being the only relief. Approximately seven out of 10 households in Alabama rely on electricity to heat and cool their homes.
Alabama residents suffer from the 4th most expensive utilities in the U.S., despite being one of the leading nuclear power and coal mining generators. In 2019, a study found Alabama residents pay $448.73 per month on average on utilities alone, with only South Carolina, Florida, and Hawaii paying more.
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 shoulder season and sees massive gaps in how much you can expect to pay to run your household.
Northerners are likely 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 gas prices.
However, fall is also when many homeowners in the north escape these high bills by moving south for the winter.
10 Ways to Reduce Your Average Cost of Bills Per Month
For some utility bills, there’s little you can do about the costs. Mortgage repayments, debt repayments, and so forth are out of your control.
So, how much are your bills a month? When figuring this out, you’ll see that your utilities are tied to usage. Altering your use is one way to cut your bills, but if you want to save, you’ll have to think outside the box.
Here’s your guide to reducing your average cost of bills per month.
Talk to a Professional
The first step is preventing energy waste in your home. A lack of insulation, drafts, and more can cause your home to waste the energy you’re paying for. According to the U.S. Environmental Protection Agency (EPA), you can save 15% on energy bills by ensuring your home is insulated.
Calling in a professional to inspect your home costs a few hundred dollars. A professional can determine where your home is losing energy and make targeted recommendations to correct the problem.
Stop Energy Vampires in Their Tracks
Energy vampires are appliances and devices that consume power when not used or switched off. It’s estimated that energy vampires can consume 25% of your home’s energy usage annually.
Unplugging devices is an intelligent solution, but which appliances and devices are consuming your home’s energy?
Home energy monitors like Sense plug directly into your electrical panel and provides details of where your energy is going via a handy mobile app. Pinpointing what’s consuming most of your electricity can help you figure out what to unplug.
Taking charge of your home’s energy usage means concentrating on the big consumers in your home. Plug-in kilowatt meters can focus on specific devices, such as your television, computer, or refrigerator.
Getting into the habit of unplugging what you don’t need is one of the most straightforward steps you can take to save money on your utilities.
Use Smaller Devices for Work and Play
The devices you use for work and play can also impact energy usage. For example, a desktop computer will consume more energy than a laptop, even when plugged in. This is because laptops are built for efficiency rather than power.
Another example is TV and movie streaming. Streaming through a video game console like a PlayStation is far less energy efficient than using a smaller device like an Apple TV or a Roku.
Downsizing your devices is another way to significantly impact your energy consumption.
Upgrade Legacy Appliances
Newer appliances always operate more efficiently than older ones. Manufacturers have become more concerned with offering eco-friendly appliances to their customers. If you’re using a 10-year-old dishwasher, it’s consuming far more energy than the one made today.
Households often run their appliances until they fail because of the sticker shock associated with newer devices. However, buying new appliances is an investment for the future, which ultimately pays dividends.
Newer appliances, like washing machines and driers, also come with “eco” and “efficiency” settings. These modes are designed to save energy at the cost of time. While the added time needed to wash your clothes or dishes may be inconvenient, it uses less electricity and water.
Finally, remember that older appliances, such as HVAC systems, will lose some natural efficiency with age. You can do nothing to stop this apart from prolonging the inevitable through regular servicing.
If you’ve noticed an unexpected jump in your energy bills, the chances are one or more of your appliances have experienced a drop in efficiency.
Switch Out Old Light Bulbs
Which bulbs are you using for lighting at home?
Older incandescent bulbs are the least efficient lighting options because they expend energy on producing heat instead of light. You can upgrade your lighting to LED bulbs to save on costs.
LED bulbs are infinitely more efficient because they produce the same brightness at 8 watts as an incandescent bulb does at 60 watts. They can last up to 30 times longer than an incandescent bulb.
While other efficient bulbs exist, LED bulbs beat them all. For example, an LED bulb will last three to five times longer than a CFL light.
Another advantage of LED bulbs is the variety offered in these products. Early incarnations of these bulbs produced bright, harsh light. Today, you can find LED bulbs in different shades, colors, and temperatures to get the ambiance you want at home.
Replace Your Showerhead
Water bills often pale in comparison to electricity, natural gas, and oil costs. The average water bill in the U.S. is just $72.93 per household per month. It may not sound like much, but making positive changes at home can reduce this figure.
Showers are among the most prominent water-consuming activities. Switching out an older showerhead with a new one can make a significant difference.
Previously, the answer to reducing water consumption was taking shorter showers, but you may not have to do this. Instead, look for a showerhead with the WaterSense rating. The WaterSense rating is the equivalent of the Energy Star rating but focuses on water usage and flow.
Older showerheads use more water, with extra waste caused by mist. Newer showerheads cut down on this waste while maintaining an enjoyable showering experience.
Crank Down the Thermostat
Setting a thermostat program can reduce unnecessary heating and cooling by ensuring your home isn’t wasting energy when you’re out of the house.
When you’re at home, try turning down your thermostat by a degree or two. Find your sweet spot from a comfort perspective. Lowering your HVAC use is one of the most effective ways of saving energy.
Insulate Your Home
If you’re someone constantly running your heating and cooling systems throughout the year, the chances are your home is inefficient. Air leakage is one of the leading causes of energy wastage in the average American home.
In the winter, warm air escapes, and in the summer, cool air escapes, meaning your HVAC system has to work harder to maintain your desired temperature. Insulation is designed to keep the air produced by your HVAC system inside for longer.
Several options exist for insulation, including the following:
- Wall insulation
- Basement insulation
- Attic insulation
- Energy efficient doors
- Energy efficient windows
The initial outlay for insulation can be expensive, so if you can’t afford to insulate your home fully in one season, focus on caulking any apparent drafts. If there are none, invest in attic insulation. The air tends to rise, so if you can stop it from leaving via your roof for an extended period, you’ll get more mileage out of every dollar invested.
In the long run, you should work toward insulating your home entirely.
Service Your HVAC System
The average HVAC system should last anywhere from 10 to 15 years. You can expect your HVAC system to lose efficiency much earlier without regular servicing.
There’s nothing worse than seeing your home’s heating and cooling system give out during a hot summer or freezing winter. Regular maintenance ensures minor issues don’t become crippling, leading to high energy bills.
Creating a “how much for gas and electric per month” budget is vital. Putting more money away for these expenses may strain your disposable income, but an annual investment in professional servicing offers some breathing space.
Collaborating with a local HVAC company also provides vital intel to determine when to buy a new HVAC system. Running it until it fails isn’t the answer. Technology moves so fast that new HVAC systems from 10 years ago are now considered radically outdated.
Research Renewable Energy
Renewable energy is growing in popularity. Rooftop solar panels have become a common sight in many areas of the country. It’s estimated that throughout the lifespan of a solar panel, the average household saves $10,000 to $30,000 on their energy bills.
The popularity of solar panels means they’re becoming less expensive, and tax credits on the federal and state level have encouraged many households to invest in them.
Obviously, the mileage from solar panels depends on where you live. Homes in states like California, Arizona, and Florida have more sunlight hours and, in turn, generate more solar energy. However, modern solar panels generate energy even on relatively cloudy days.
Research your options to see if solar panels are the right move for your home. Multiple factors determine whether your home is suitable, including the following:
- Ownership – Only the homeowner can decide whether to place solar panels on their home. Consider raising the issue and discussing the benefits with your landlord, even if you're renting.
- Right-Shaped Roof – Not every roof is suitable for solar paneling. Older colonial-style homes with certain roof pitches may be unable to accommodate solar panels.
- Cost – Solar panels are a significant investment, even today. Be aware of the startup costs to plan and budget for them.
Save on Energy Costs with Nexamp
High energy bills in the U.S. today highlight the need to move away from our reliance on fossil fuels. With so many households going into debt or unable to pay their energy bill, it’s time to invest in the future.
Exploring the best of what solar energy offers is a great first step to reducing the cost of your utilities. Even if you can’t install panels on your roof, joining a Nexamp community solar farm requires no upfront costs and has the potential to save up to 20% on your electricity costs.
Invest in solar energy, protect the planet, and save money on your energy bill with Nexamp today!