How to lower your electric bill in winter: 12 tips that actually work
By the kWhCompare Editorial Team · Updated October 9, 2026 · 5 min read
To lower your electric bill in winter, set your thermostat to 68°F while you're home and lower it when you're asleep or away, seal drafts around doors and windows, use space heaters only for small spaces instead of whole-house heat, and check that your electricity plan still fits how much you use before the cold months hit.
Winter heating is usually the single biggest swing in a home's electric bill. Unlike summer cooling, where you're fighting outdoor heat, winter asks your system to replace heat that's constantly leaking out through walls, windows and gaps. The good news is that most of the fixes cost little or nothing.
Set your thermostat to 68°F (the DOE's winter guidance)
The U.S. Department of Energy recommends setting your thermostat to 68°F while you're awake and home, then turning it down while you're asleep or out of the house. The idea is simple: the bigger the gap between indoor and outdoor temperature, the faster your home loses heat and the harder your system works to replace it.
As a rough rule, each degree you lower your thermostat for about eight hours can trim roughly 1% off your heating cost for that period. So setting back from 70°F to 68°F overnight, on top of keeping daytime temps at 68°F instead of 72°F, adds up over a full winter even though it feels like a small change day to day.
A programmable or smart thermostat makes this automatic. If you're not ready to buy one, even a sticky note on the thermostat reminding you to dial it down before bed works.
Understand heat pumps vs. heat strips before you crank the heat
If your home uses a heat pump, you have two very different heat sources behind the same thermostat. The heat pump itself moves warmth from outside air into your home and is efficient even on cold days. But most heat pumps also have electric resistance heat strips as backup, which kick in when it's very cold outside or when the thermostat calls for a big, fast temperature jump.
Heat strips work like a giant toaster: all the electricity goes straight to heat, with none of the efficiency boost a heat pump gets from moving heat rather than generating it. That means heat strips can use noticeably more electricity for the same amount of warmth. The simplest way to avoid triggering them unnecessarily is to raise your thermostat in small steps (a degree or two at a time) instead of jumping several degrees at once, and to avoid using the emergency heat setting unless your heat pump is actually malfunctioning.
The real cost of space heaters, worked out
Space heaters feel cheap because they're small, but most portable models draw 1,500 watts, which is a lot of power for a single appliance. Here's the math using a 1,500-watt heater run 5 hours a day for a 30-day month:
1,500 watts = 1.5 kilowatts. Running it 5 hours a day uses 1.5 kW x 5 hours = 7.5 kWh per day. Over 30 days, that's 7.5 kWh x 30 = 225 kWh for the month.
What that costs depends entirely on your rate. Here's how it plays out at a few different state averages:
| State / average | Rate (¢/kWh) | Monthly cost for 225 kWh of space heater use |
|---|---|---|
| U.S. average | 18.34 | $41.27 |
| Texas average | 15.94 | $35.87 |
| New York average | 29.49 | $66.35 |
| California average | 34.74 | $78.17 |
That's the cost of heating just one room for part of the day. A space heater can still save you money compared to heating an entire house, but only if you use it to heat one occupied room and turn the central system's setting down elsewhere, rather than running both at full blast. Always use a modern heater with a tip-over switch and keep it away from anything flammable.
Seal drafts before you spend money on anything else
Sealing air leaks is usually the cheapest fix with the biggest payoff, because it reduces how much heat you lose in the first place, which lowers the load on your heating system no matter what powers it. Check these common leak points:
- Gaps around exterior doors and windows, fixed with weatherstripping or a draft stopper
- Unsealed attic hatches and recessed lighting, which let heated air escape upward
- Electrical outlets on exterior walls, which can be fitted with inexpensive foam gaskets
- Gaps where pipes or cables enter the house, sealed with caulk
None of this requires a contractor. A $20-$40 trip to the hardware store for weatherstripping, caulk and outlet gaskets can noticeably cut how often your heat has to cycle on.
Lower your water heater bill without a cold shower
Water heating runs year-round, but winter adds a hidden cost: incoming water is colder, so your water heater has to work harder to reach the same temperature. Three changes help without any discomfort:
- Set the water heater thermostat to 120°F, which is hot enough for showers and dishes while using less energy than higher settings
- Wrap an older water heater tank and the first few feet of hot water pipe with insulation if they feel warm to the touch
- Fix dripping hot water faucets, since every drip is water (and the energy used to heat it) going down the drain
Other quick wins that add up
A few smaller habits stack on top of the bigger fixes above:
- Open curtains on sun-facing windows during the day to let in free solar heat, then close them at night to trap warmth
- Reverse ceiling fans to spin clockwise at low speed, which pushes warm air near the ceiling back down into the room
- Wash clothes in cold water and run the dishwasher and laundry only with full loads
- Unplug or power down space heaters, string lights and other seasonal devices when you leave a room
If you want the full picture of where your electricity actually goes each month, this breakdown of every charge on your electric bill is a useful next read, and if your bill still feels unusually high after making these changes, this guide to common causes of a high electric bill can help you rule out other issues.
Check your electricity plan before winter hits
Heating is the one season where your rate per kWh matters most, because you're using more electricity than any other time of year. If you live in a deregulated market like Texas, it's worth checking your plan's rate before usage climbs, since a plan that looked fine in a mild month can turn expensive once you're running the heat daily. This guide on the best time to switch electricity providers in Texas explains how to time a switch around your contract and the season. You can also compare current rates for Texas and every other state, or run your ZIP code through the free tool at kWhCompare's rate comparison homepage to see what plans are available where you live.
If you're unsure whether your current price is competitive, this guide to what counts as a good price per kWh breaks down typical ranges by state so you can judge your own rate against it.
What to do next
Start with the free fixes this week: drop your thermostat to 68°F while home and lower at night, seal the obvious drafts around doors and windows, and set your water heater to 120°F. Those three changes cost little and start saving immediately. Then, before your heaviest usage months arrive, compare your current electricity rate against other available plans so you're not paying a high per-kWh price on top of higher winter usage.
See current plans and rates for your ZIP code before winter usage hits.
Frequently asked questions
What temperature should I set my thermostat in winter to save money?
The DOE recommends 68°F while you're home and awake, then lowering it while you're asleep or away. Each degree you set back for about eight hours typically saves around 1% on heating costs for that period.
Do space heaters really save money compared to central heat?
They can, but only when used to heat a single occupied room while you turn down heat elsewhere in the house. A typical 1,500-watt heater run 5 hours a day uses about 225 kWh a month, which costs roughly $36 to $78 depending on your state's rate.
Is a heat pump cheaper to run than electric heat strips?
Yes. A heat pump moves existing heat into your home, which is more efficient, while heat strips generate heat directly from electricity like a space heater. Raising your thermostat gradually instead of in big jumps helps avoid triggering the heat strips unnecessarily.
What's the single best way to lower an electric bill in winter?
Sealing air leaks around doors, windows and attic hatches usually gives the best payoff for the least cost, because it reduces how much heat your system has to replace in the first place.
Sources
- U.S. Department of Energy, thermostat and weatherization guidance (energy.gov)
- U.S. Energy Information Administration, residential electricity rates (eia.gov)
Figures are checked against these sources when each guide is updated. See how we research and calculate. This guide is for general information and isn't financial advice.