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How To Save Money on Your Energy Costs This Winter

Posted on January 8, 2024   |   Updated on September 30, 2025
Bryan M. Vance

Bryan M. Vance

A cold grandfather wearing gloves, warming himself by the radiator and drinking hot tea at home during the day. The hands of an older man holding a hot drink and sitting next to a radiator. Concept of heating season.

A few simple steps can lower your costs and keep you comfortable all season long. (Getty Images)

Winter brings colder temperatures, and for many of us, that means higher energy costs. According to the Department of Energy, space and water heating together eat up as much as 63% of the average American’s annual energy consumption. That adds up to hundreds, or even thousands, of dollars a year.

But the DOE estimates as much as 20% of the energy we pay for to create and maintain warmth in our homes is wasted due to drafts and other inefficiencies. With a few simple and affordable steps, you can reduce energy waste and save money this winter.

Seal Up Drafts

Insulation helps keep cold air out, and warm air in. But many homes have gaps which allow your expensive heat to slip outside. Conduct a simple energy audit by walking around your home and identifying any spaces where you feel cold, drafty air. Then check for the source.

Window frames might need new caulking around them. Or, you can seal up older windows entirely with simple DIY film kits, which add an extra layer of transparent insulation around leaks. Want to go a step further? You can buy kits to seal gaps around your outlets and light switches on external walls.

Turn Down Your Water Heater

Water heating consumes as much as 18% of an average American household’s energy costs. But there’s a simple, safe way to lower those costs: lower the temperature your water heater is set to maintain. Most manufacturers set water heaters to 140 F, but the DOE recommends setting it to 120 F. This shift can save you up to 10% of your costs! Here’s how to adjust the water heater’s setting (and remember to follow ALL precautions).

Adjust Your Thermostat

Investing in a programmable thermostat is a fantastic way to save on energy costs. Lowering the temperature when you’re not at home, and only setting it to around 68–70 F when you are can save you as much as 10% on heating costs, the DOE estimates. Also, setting a schedule to lower temperatures at night can actually help you get a better night’s sleep.

Use Your Ceiling Fans

Yes, these summer favorites can actually help you feel warmer in winter months. Most ceiling fans have a switch to flip the direction they rotate and how they circulate air. Adjusting it to slowly rotate clockwise can force warmer air to move further down in the room.

Get Cozy

The simplest, easiest step you can take? Dress warmly. Trade out your tank tops and T-shirts for sweaters, sweatshirts, and warm pants. Also, those beautiful blankets you got from your grandma? Now is the perfect time to snuggle up under one on the couch or while working from home.

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