As we head into winter and our energy usage increases, homeowners in the U.S. are facing yet another energy price hike. Homeowners can expect the average cost to keep their home warm to rise by an average of 7.6%, to $976 this season, according to the National Energy Assistance Directors Association (NEADA).
Fueled by the rise in electricity and natural gas prices, coupled with an expected cold season, it comes as a bitter blow to homeowners. The energy hike is yet another expense for households to cover, along with rising grocery bills — both essentials for everyday living. While it's understandable to be worried about the inevitable price increase, I've called on an expert to share their top 5 tips on saving energy at home.
Homeowners face a hefty rise in fuel bills
The NEADA predicts that home heating costs will exceed inflation, with many families falling into debt to cover their utility bills, and those unable to pay facing power shut-offs. And it estimates that the average winter heating bill will rise by $69, from $907 in 2024.
However, the amount you will need to pay will depend on where you live and how you heat your home. The energy hike will hit those who heat their homes with electricity the most, with the NEADA expecting household energy expenditure to rise 10.2% from $1,093 last winter to $1,205 this year, adding an additional $112 to an electricity bill.
Those in the South are expected to see the biggest increase of 21%, with those in the Northeast expecting the lowest hike at 7.2%.
And the NEADA says that electricity prices are rising more than twice as fast as the overall inflation rate, which it explains is down to investment in transmission and distribution systems, the rising cost of natural gas — a primary fuel for power generation — and the rapid growth in large data centers that are increasing electricity demand.
Higher natural gas prices will also see the average gas bill increase by 8.4%, from $639 to $693. And the reason given? Higher wholesale gas prices and a greater LNG export demand. In this instance, households in the Midwest will see the largest rise at 16.4%, with the lowest at 5.3% in the South.
A big blow for households
But, whatever the reason for the price energy hikes, it still hits hard in the public’s pockets. And according to the NEADA, one in six U.S. households, accounting for 21 million, is already behind on their utility bills, and that’s even before winter gets underway.
It will be a tough call for families who rely on electricity for their main heat source, especially as NEADA states that federal aid is shrinking, reporting, “Funding for the Low Income Home Energy Assistance Program (LIHEAP) funding has fallen from $6.1 billion in 2023 to about $4 billion in 2025.”
A total of 102 gas and electric utilities have increased their rates or are proposing to do so for this year or next, according to a recent report from the Center for American Progress. This is set to affect nearly 50% of the national 81 million utility customers and more than one-third of natural gas customers, accounting for a further 28 million people.
It appears that the price increases will start to impact not only low-income families, but also those with middle incomes, and there is now an even greater need to address how energy can be conserved and used efficiently in the home.
5 best ways to save energy at home and beat the price hike
To help you find the best ways to save energy at home and still stay warm, I called on the expertise of Austin Kilgore, lead researcher and personal finance analyst at the Achieve Center for Consumer Insights, who shares his 5 top tips.
1. Understand what you are paying and your usage
Kilgore’s first piece of advice is to get to know what you are paying for and hone in on your household’s usage. “What works for one person, or family, won’t necessarily be the same as what works for others,” says Kilgore. “Learn what your utilities actually cost, and what your individual patterns are. Look at recent bills to find out the cost per gallon of water, per kilowatt of electricity or per therm of natural gas. Focus your saving efforts where you and your family will save the most money.”
2. Turn down the dial
“We’ve all heard it before, but turning down the furnace saves, as does turning the temperature up on the air conditioner,” says Kilgore.
And he adds that according to the U.S. Department of Energy, the average homeowner can save 10% on heating and cooling bills by adjusting the thermostat by 7-10°F for eight hours a day from its normal setting (which can most easily occur at night).
To make this easier, he suggests purchasing a programmable thermostat, and he adds, “You can gradually turn the thermostat down a degree or two during the winter months as you acclimatize to cooler weather.”
3. Check out your home for leaks
It’s also a good idea to inspect your home for hot and cold spots. “Check your home visually (and by feel) to know where any cold (or hot) air can enter,” advises Kilgore.
Once you spot a draft, you can take steps to secure the gaps. “It could be installing weather stripping around windows and doors, and using door sweeps or inexpensive “draft dodgers” to block drafts.
He also mentions that electrical outlets, locks, air conditioning units and even recessed light fixtures can be culprits for air leaks.
4. Insulate your attic
Heat rises, so if your attic is poorly insulated, heat will escape through your roof. Kilgore says, for this reason, insulating your attic is one of the best ways to lower heating costs in your home.
“Annual savings will depend on where you live, but will be at least $400 or more if you insulate a 1,000-square-foot attic that previously was not insulated [when using R-38 insulation]”, he claims.
5. Consider how you handle daily chores
You can also save energy by considering how you handle daily chores, with Kilgore suggesting that a simple solution is changing how you wash your clothes. You can swap your hot wash for a cold wash, as most detergents will work well in cooler temperatures.
He also suggests getting into the habit of drying clothes outdoors whenever possible, or using a drying rack indoors when it’s too cold or wet outside. What’s more, make sure you fully load your dishwasher before turning on a cycle, and perhaps you can spend less time in the shower. There are also plenty of ways you can make your refrigerator more efficient.
All of these changes won’t make a huge impact on your daily life, but they can go a long way to help you use less energy.
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