What Causes a High Electric Bill?

Are you feeling the shock of a higher-than-expected electric bill? You’re not alone. Many households grapple with the frustration of soaring utility costs, often wondering what’s driving those numbers skyward. We’re here to uncover these mysteries for you. 

How much is an electric bill per month? 

When it comes down to it, your average monthly electric bill will almost always vary based on these reasons: 

1. Your location: Depending on where you reside, your region plays a crucial role in determining the cost of electricity. Because of energy deregulation, where you live can determine if you have the right to choose where your energy comes from. Selecting another provider that’s different from local utilities could lead to a lower electric bill depending on rates. 
2. Your plan type: Whether you choose a fixed-rate or a flat-fee plan, your choice matters for your energy bills and overall comfort. For example, variable-rate plans aren’t the safest choice if you’re looking to protect yourself from market fluctuations. Variable plans can actually hurt you when market prices get tough; forcing you to pay more. 
3. Weather: Of course, the hotter the climate, the more you’ll want to crack up your A.C. Weather affects your monthly energy bills because with changing temperatures comes more energy consumption. 
4. Market fluctuations: As the seasons change, so does supply and demand. The energy landscape is always changing to fit what customers need. With that, energy prices are always changing and so could your electric bill if you’re not on a stable plan. 

According to the E.I.A, the average monthly electric bill in the U.S. in 2023 came in at 15.98 cents/kWh. 

12 unique reasons your electric bill is high 

While your location, plan type, weather, and market fluctuations are important to keep in mind, there are little things that you might be doing that could make a world of difference in your high electric bill: 

1. Your ceiling fan is turning in the wrong direction 

It may seem simple but your ceiling fan direction plays a part in your electricity bills. The direction of your fan determines which direction the air flows in your room. A counterclockwise rotation in the summer produces a wind-chill effect, making you feel cooler. This might be enough to reduce your reliance on air conditioning. 

2. Your home has faulty wiring 

Having faulty wiring in your home could result in some pretty horrendous energy bills. Bad wiring forces your electrical outlets or appliances to work harder. Not to mention faulty wiring can lead to electrical fires resulting in even bigger bills. 

3. You’re leaving your windows open 

If you choose to keep your windows open while running your AC, you lose air and energy to the outside world. ACs generally stop cooling your room when the hot air within a room is filtered through and is at a consistent temperature. Now imagine if warm air keeps coming through your windows, your AC would try to cool the whole world! 

4. Your water heater temperature is too high 

Setting your water heater temperature higher than necessary can lead to increased energy consumption. The heater will work harder to maintain the higher temperature. In the same way, your water heater will experience the constant need to reheat. This results in your appliance wearing out. 

5. You have inefficient lighting 

According to Energy.gov, LEDs use up to 90% less energy and last up to 25 times longer than traditional incandescent bulbs. Making this small change to your home can make a world of difference in your electric bill.  

6. Leaving everything plugged in 

Known as “energy vampires,” these are devices that still use energy even when plugged in. As a rule of thumb before you leave your house, unplug appliances like toasters and coffee makers to ensure they don’t draw more energy than they have to. 

7. Your house isn’t “smart” enough 

Smart tech like smart thermostats can drastically make a difference in your electric bills. Tech like this has the ability to program into your home’s smart system. Your smart energy technology can analyze your energy usage. It can adjust your home’s temperature to save energy when you’re not there. 

8. Improper insulation 

Proper insulation helps to trap heat inside your home during colder months and prevents cool air from escaping during warmer months. Without adequate insulation, your heating and cooling systems must work harder to maintain comfortable temperatures. 

9. Pets 

If you have dogs or cats that shed pretty often, they might affect your electricity bills too. Pet hair can become stuck in your air conditioning units. This can lead to a rapidly dirty air filter and can decrease the efficiency of your AC.  

10. No shades or blinds in your home 

In cooling seasons, about 76% of sunlight that falls on standard double-pane windows enters to become heat. If your windows are unshaded, the sun coming through the window could make the room you’re sitting in feel a lot warmer than it is. A hotter room might cause you to turn up your AC when simply covering your windows could make your room much cooler. 

11. Overreliance on room-to-room cooling and heating appliances 

While convenient, appliances like portable air conditioners can cost you more in energy consumption. Room-to-room cooling solutions only provide cooled air to one room at a time. Central air conditioning units distribute cool air evenly throughout your home. This provides better overall comfort and can possibly save energy.  

12. Lack of energy-saving measures in your home 

Making small changes to save energy every day can reduce your electric bill over time. You can do a multitude of things to make your home more energy efficient! These practices can be as simple as turning the lights off or adjusting your thermostat. 

Why your electric bill may have doubled in one month 

If you’re looking at your energy bills and thinking, Why did my electric bill double in a month? Don’t panic! Here are a few indicators that might have doubled your bill that you might not think of: 

1. Increased energy consumption 

Did you buy some new appliances you couldn’t wait to get your hands on? Did the weather make a leap this month? If you find yourself using energy more than usual, this could affect your electric bill.  

2. You’re not on an energy plan that protects you from market fluctuations 

If you have a variable-rate plan, fluctuations in the market can cause your energy costs to increase. This is because you pay for energy rates on a monthly basis. So, if there’s a particularly hot summer, your electricity bills could skyrocket because of high demand for energy. 

Choosing a predictable energy plan can help shield you from market fluctuations even at their peak. 

3. You’ve moved 

Keep in mind that your geographical location plays a part in your energy rates. If you move out of region or state prices will fluctuate. In the same way, if you moved into a bigger home, this obviously means you’ll need more power to cool down your space. 

4. You started working from home 

If you’ve started a new position in a remote work environment, with all that new tech comes higher bills. Plus, if you work from home during the summer, you’ll need to keep your home cooler for longer to keep yourself and your home comfortable. 

5. House guests 

Planning some gatherings and upcoming birthdays? More people in your home means more heat for your AC to cool. Your unit has to work a lot harder to make sure your home stays cool and comfortable for everyone. With more people in the house, there is typically an increase in energy usage as guests utilize lights, electronics, heating or cooling systems, and appliances as well. 

6. Damaging storms 

Severe storms, including tornadoes and thunderstorms, can cause widespread power outages by damaging power lines and other electrical infrastructure. During these outages, you may resort to using alternative power sources such as generators. 

7. Worn out appliances 

As appliances age, their efficiency tends to decline. Worn-out components, such as motors, compressors, or heating elements, may operate less efficiently. Worn-out appliances often consume more energy than newer, more energy-efficient models. 

8 easy ways you can possibly reduce your electric bill 

1. Replace older appliances with Energy Star-rated models that are designed to consume less energy. 
2. Set your thermostat to energy-saving temperatures, such as 68°F (20°C) in winter and 78°F (25°C) in summer. 
3. Identify and seal air leaks around doors, windows, electrical outlets, and ductwork to prevent conditioned air from escaping. 
4. Use your ceiling fan to its full advantage! 
5. Use smart power strips to automatically cut power to electronics and appliances that are not in use. 
6. Install low-flow fixtures, such as faucets and showerheads, and fix leaks promptly to reduce water usage and minimize energy consumption. 
7. Run dishwashers and laundry machines with full loads to maximize energy efficiency. 
8. Use energy-efficient cooking methods like using the correct sizes of lids on your pots to minimize heat loss.