The Best Air Conditioners to Keep You Cool This Summer Quick highlights of the seven most energy-efficient air conditioners for […]
Electricity prices in Australia are expected to rise significantly in 2025, with some households on default market offers facing increases of up to $228 annually starting July 1st.
This article outlines 14 practical, cost-effective strategies to help reduce electricity bills and manage rising energy costs. We all know that the cost of living keeps going up, but your electric bill doesn’t have to be one of those expenses.
14 Smart Ways to Reduce Your Electricity Bills
Save money and energy with these proven strategies
1 Upgrade to Smart Thermostats
Install programmable smart thermostats and set optimal temperatures: 25-27°C in summer, 18-20°C in winter.
Save up to 30%2 Switch to LED Lighting
Replace all traditional bulbs with energy-efficient LED lights that use less energy and last much longer.
Long-term savings3 Unplug Unused Electronics
Turn off devices at the wall when not in use. Standby mode can contribute up to 7% of your power bill.
Reduce by 7%4 Install Solar Panels
Generate your own renewable energy and sell excess power back to the grid with feed-in tariffs.
Save up to $1,500/year5 Wash Clothes in Cold Water
Use cold water for washing clothes to reduce energy consumption from water heating.
Lower heating costs6 Use Off-Peak Hours
Run dishwashers, washing machines, and dryers during off-peak times (usually 10 PM to 7 AM).
Lower rates7 Smart Energy Monitors
Track your energy usage in real-time with smart monitors, plugs, and timers to identify wasteful habits.
Real-time control8 Air Dry Clothes
Use clotheslines or drying racks instead of electric dryers. Clean lint traps and use lowest heat settings when necessary.
Reduce dryer costs9 Energy-Efficient Appliances
Choose ENERGY STAR rated appliances and look for state and federal rebates on energy-efficient installations.
Long-term efficiency10 Optimize Refrigerator Use
Keep fridge at 35-38°F and freezer at 0-5°F. Don’t overfill and let hot food cool before refrigerating.
Efficient cooling11 Turn Off Lights
Simply turn off lights when leaving rooms and use low-energy light bulbs throughout your home.
Simple savings12 Review Energy Bills
Compare energy providers using websites like Energy Made Easy to avoid loyalty penalties and find better offers.
Better rates13 Improve Home Insulation
Add insulation to walls and attic, and draught-proof your home to reduce heating and cooling costs.
Cut costs by 25%14 Upgrade Heating Systems
Replace old heating systems with newer, more energy-efficient models for better performance and lower costs.
Modern efficiency1. Get A Smart Thermostat To Lower Electricity Bills
A great way to reduce electricity bills is to upgrade to a smart thermostat. Smart programmable thermostats can help you save up to 30% on your energy bill, so it’s worth the investment.
Using the right kind of thermostat can make a big difference in how much energy your home uses, so you need to research and find one that’s right for you. To maximise efficiency, set air conditioners at 25°C to 27°C during summer and heaters at 18°C to 20°C during winter.
What is a thermostat?
A thermostat is a household device that regulates room temperature. It does this by sensing the air temperature and switching the furnace or air conditioner on or off as necessary.
Thermostats can be set to specific temperatures, or they can be programmed to adjust the temperature at different times of day.
2. Replace All Your Light Bulbs With LED Lights
LED lights use much less energy than traditional light bulbs, so replacing all the bulbs in your home with LED lights is a great way to save on your electricity bill.
LED lights also last much longer than traditional light bulbs, so you’ll save money in the long run as well. In addition, LED bulbs are environmentally friendly since they don’t contain any toxic materials.
What is an LED Light?
An LED light is a semiconductor device that emits light when an electric current passes through it. It consumes less power and lasts longer than other types of lighting, making it an energy-efficient choice.
3. Unplug Electronic Devices When Not In Use
Another way to save on your electricity bill is to unplug electronics when you’re not using them.
Electronics can still use energy even when they’re turned off, so it’s best to unplug them when you’re not using them. This is especially important for devices that have a standby mode, like TVs and computers.
Equipment left in standby mode can contribute up to 7% to your power bill. Simply turn them off at the wall.
This can make a big difference, especially in a house with children, where there are so many electronics always in use.
4. Install Solar Panels
One of the best ways to reduce electricity bills is to install solar panels.
Solar panels can provide a significant portion of the energy your home needs, and they can help you save on your electricity bills. Solar panels are also a great investment because they increase the value of your home.
You can also sell the extra energy that your solar panels produce back to the grid, and some utility companies will even give you credit for it.
The upfront cost for solar installation may be high, but solar panels will pay for themselves in the long run. Depending on where you live, you might be entitled to feed-in tariffs—compensation for the excess energy your solar system feeds back into the grid.
How much can you save using a solar panel?
A solar panel can help you save money on your energy bill. The average homeowner can save up to $1,500 a year by switching to solar.
5. Wash Clothes In Cold Water
Washing your clothes in cold water can help you save money on your electricity bill. Cold water uses less energy than hot water, so you’ll save money on your water heating bill as well.
Numerous electricity companies provide lower rates off-peak (usually 10 PM to 7 AM). Run dishwashers, washing machines, and dryers during off-peak hours to save dollars.
6. Install Smart Energy Monitors
Smart energy monitors are devices that help you track your energy usage and find ways to save. Smart energy monitors can be a great way to reduce electricity bills, as they help you identify ways to reduce your energy usage.
Many smart energy monitors also come with features that allow you to control your home’s energy consumption from your phone or tablet. So they could be a good option for you if you’re looking to save on your electricity bill.
Apart from smart monitors, smart plugs and timers enable you to turn devices on and off automatically, cutting off unnecessary usage when not in use. Equip your home with a smart meter to monitor usage in real-time and spot wasteful habits.
Consider having a professional conduct a home energy audit to reveal inefficiencies you might miss.
What are energy monitors?
Energy monitors are devices that track your home’s energy usage in real time, allowing you to see how much electricity your appliances are using and when.
This information can help you make more informed decisions about your energy consumption, potentially leading to lower energy bills.
7. Go Easy With The Electric Dryer
Electric dryers can be a great convenience, but they’re also one of the biggest energy-consuming appliances in your home.
If you want to reduce your electricity bill, try using your dryer less often. Instead, hang your clothes up to dry or try using a drying rack or an indoor clothesline.
If you must use the dryer, make sure to clean the lint trap after each use, and try to use the lowest heat setting possible.
8. Buy Energy-Efficient Appliances
When you’re shopping for new appliances, look for the ENERGY STAR label. ENERGY STAR appliances are more energy-efficient than standard appliances and can save you money on your electricity bill.
Look for state and federal rebates when installing energy-efficient appliances such as solar hot water systems or heat pumps. It can save you a considerable amount of money upfront.
ENERGY STAR appliances are also better for the environment.
What are energy-efficient appliances?
Energy-efficient appliances are appliances that use less energy than traditional ones. This can help save money on your energy bill as well as help to conserve the environment. Some energy-efficient appliances include:
- LED light bulbs
- Energy Star-certified refrigerators
- Energy Star-certified washing machines
- Heat Pump Water Heaters
9. Use Your Fridge Consciously
Your fridge is one of the biggest energy-consuming appliances in your home, so it’s important to use it wisely.
When you’re shopping for groceries, try to buy only what you need so your fridge isn’t always full.
Additionally, make sure to keep your fridge and freezer at the right temperature. Your fridge should be between 35 and 38 degrees Fahrenheit, and your freezer should be between 0 and 5 degrees Fahrenheit.
Don’t put hot food directly in the fridge. Putting hot food directly in the fridge can cause your fridge to work harder and use more energy.
If you have hot food, let it cool down to room temperature first before putting it in the fridge.
10. Turn Off Lights When You Leave A Room
One of the easiest ways to reduce electricity bills is to turn off the lights when you leave a room.
Many people don’t realise how much energy they’re wasting by leaving lights on when they’re not in the room. So, if you want to save money on your electric bill, make sure to turn off the lights when you’re not using them.
11. Use Low-Energy Light Bulbs
Low-energy light bulbs are a great way to save money on your electricity bill. This is because low-energy light bulbs use less energy than standard light bulbs. Low-energy light bulbs are also better for the environment.
Also Read: Wattage vs Lumens: Knowing the Difference for Your LED Light Replacement
12. Review Your Energy Bills
One of the best ways to reduce your spending on electricity is to review your energy bills.
Reviewing your energy bills can help you identify ways to reduce your energy usage. Don’t remain with the same supplier out of laziness. Use comparison websites such as Energy Made Easy to get better offers and escape the ‘loyalty penalty’.
Many energy companies offer online tools that can help you track your energy usage and find ways to save. Additionally, many energy companies offer discounts for customers who review their energy bills.
13. Add Insulation To Your Home
Insulating your home is a great way to reduce your electricity bill. Adding insulation to your walls and attic can help you keep your home cooler in the summer and warmer in the winter.
Reducing heat loss by draught proofing can cut heating and cooling expenses by as much as 25%.
This can help you reduce your energy usage and save money on your electricity bill. Additionally, insulation can also help you reduce noise pollution and make your home more comfortable.
14. Replace Your Old Heating Systems
If you have an old heating system, it may be time to replace it with a new, more energy-efficient model.
Newer heating systems are much more energy-efficient than older ones, so you’ll save money on your electricity bill by replacing your old heating system. Additionally, newer heating systems are also better for the environment.
Reducing your electricity bills doesn’t have to be complicated or overwhelming.
From simple daily habits like turning off lights and unplugging unused electronics to larger investments such as installing solar panels or upgrading to energy-efficient appliances, there are solutions for every budget and lifestyle.
By implementing these 14 strategies—ranging from smart thermostats and LED lighting to proper home insulation and conscious appliance usage—you can significantly lower your monthly energy costs while contributing to environmental sustainability.
Remember that even small changes, when combined, can lead to substantial savings over time.
Start with the methods that best fit your situation, and gradually incorporate more energy-saving practices to see lasting reductions in your electricity bills.
Explore Financial Support Options
Government agencies and energy companies can provide payment arrangements, rebates, or concessions to qualified homes that are having trouble paying energy bills.
Seasonal Tips
Summer: Utilise ceiling or pedestal fans before using the A/C; shut blinds during the day to minimise indoor heat.
Winter: Open curtains on sunny days to allow sunlight; shut them up at night to retain warmth.
Ways to Reduce Electricity Bills – Common Questions Answered
What is the easiest way to reduce electricity bills?
Use energy-efficient appliances and LED lights. They use less power and, consequently, have lower electricity costs.
What do smart energy monitors do?
They monitor and manage energy consumption. They measure, monitor, and analyse energy consumption. It helps identify the high-energy appliances and then adjusts the measure of the usage to save power.
How can a smart thermostat help save energy?
It does not require heating water to save energy. Besides, it helps clothing last longer by preventing damage caused by fabric.
When is the best time to use high-energy appliances?
Unfortunately, they can only be utilised during the off-peak time if one has to consider the electricity charges. It costs less and decreases the demand on the power grid.
