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BetterProduct Everyday Tools Team - Household cost and shopping editorial QA
The average US household spends about $1,500 per year on electricity. Understanding how your electricity bill is calculated, which appliances consume the most energy, and how to reduce consumption can save you hundreds of dollars annually. With rising energy costs, energy efficiency has never been more important.
BetterProduct Everyday Tools Team - Household cost and shopping editorial QA
Reviewed against Department of Energy household energy references.
April 2026
Understanding appliance costs and reducing home energy spend.
7 language editions aligned from the same source formulas.
Electricity is measured in kilowatt-hours (kWh). One kWh is the energy used by a 1,000-watt appliance running for one hour. Your bill is calculated by multiplying your kWh usage by your rate (typically $0.10–$0.20/kWh in the US). Cost formula: (Wattage ÷ 1,000) × Hours Used × Cost per kWh = Cost. A 100-watt bulb running 8 hours at $0.12/kWh costs $0.096/day.
Heating and cooling (HVAC) typically accounts for 40–50% of home energy use. Water heating is 14–18%. Appliances (refrigerator, washer/dryer) are 13%. Lighting is 9%. Electronics and standby power ('vampire loads') account for 5–10%. Focusing efficiency efforts on HVAC and water heating provides the biggest savings.
Set your thermostat to 68°F in winter and 78°F in summer — each degree saves about 3% on heating/cooling costs. Use a programmable or smart thermostat. Switch to LED bulbs (use 75% less energy than incandescent). Wash clothes in cold water. Run dishwashers and laundry at off-peak hours. Unplug devices when not in use or use smart power strips.
Many utilities offer time-of-use (TOU) rates where electricity costs more during peak hours (typically 4–9pm on weekdays) and less during off-peak hours. If your utility offers TOU pricing, shift energy-intensive tasks (laundry, dishwasher, EV charging) to off-peak hours. This can reduce your bill by 10–20% without reducing consumption.