What Is Energy and Electricity? A Simple Guide for Homeowners

Key Points of This Article:

• Energy is the ability to do work, while electricity is a specific form of energy that powers most homes by moving through wires as an electric current.

• Homes use five main types of energy—mechanical, thermal, chemical, electrical, and radiant and these forms constantly transform according to the Law of Conservation of Energy.

• Electricity is generated by converting other energy sources, such as natural gas or coal, into power at plants, then delivered through transmission lines to homes.

• Understanding energy and electricity helps homeowners make smarter choices about energy plans, reduce waste, and lower costs, especially by using efficient appliances and supporting renewable sources.

What Is Energy and Electricity?  

Energy and electricity are two terms we use every day, but many people don’t fully understand what they mean or how they’re connected.  

Think of energy and electricity like cars on a highway. Energy is the “car” that actually does the work (heating your home, lighting your rooms, and charging your phone). Electricity is the “highway” that carries that energy from one point to another to power your device. 

From a heating and cooling point of view, energy is the reason your home stays warm in the winter, or cool in the summer, your lights turn on at night, and your phone charges while you sleep. Electricity is how that that energy reaches and powers your home.  

They work together by moving usable power from its source (energy) to the places in your home that need it, turning raw energy into the light, heat, and comfort you rely on every day (electricity). 

What Is Energy? 

Energy is what makes everything around you work. It’s the force that moves your ceiling fan, heats your oven, and keeps your refrigerator cool.  

According to the U.S. Energy Information Administration (EIA), energy is the ability to do work, meaning it allows something to move, heat up, or produce light.  

In your home, energy is constantly being used and transformed. When your furnace runs, energy turns into heat. When your washing machine spins, energy turns into motion. You can’t see energy itself, but you experience it through everything that works, moves, or warms in your house. 

What Are the Five Main Types of Energy You See at Home? 

Scientists classify many different types of energy (including nuclear, radiant, and more), but these five are the ones most homeowners interact with every day: 

• Mechanical energy is the energy of movement. You see it when your washing machine spins, your fan rotates, or your car engine runs. These are all powered by motion. 

• Thermal energy is the energy of heat. You feel it when your heater warms the house or when hot water runs from your faucet. 

• Chemical energy is stored in fuels and materials, like natural gas, batteries, or even food. When burned or consumed, that stored energy is released and used. Chemical energy occurs in your home when things like your gas stove heats a pan. 

• Electrical energy is what powers most of your home. It’s created when tiny particles called electrons move through wires, lighting your rooms and charging your devices. 

• Light (radiant) energy comes from the sun or artificial lights. It helps you see, warms your home naturally, and even generates electricity through solar panels if you have them. 

All these types of energy work together in your daily life, often changing from one form to another.  According to the Law of Conservation of Energy, energy can’t be created or destroyed, it only changes form. That means every bit of energy in your home is constantly moving and transforming, helping you live comfortably and stay connected. 

Where Energy Comes From: Types of Energy Sources 

Every time you turn on a light or plug in your phone, that electricity comes from an energy source. Power doesn’t just appear, it’s made from different materials or natural forces that create energy. These are called energy sources, and they’re usually divided into two groups: nonrenewable and renewable. 

Nonrenewable energy sources include coal, oil, natural gas, and nuclear energy. They’re called “nonrenewable” because they come from fuels that can’t be replaced quickly.  

Once we use them, they take millions of years to form again. These sources have powered most homes and businesses for a long time because they can make electricity day and night. 

Renewable energy sources come from things that naturally replace themselves, like sunlight, wind, water, plants, and heat from the Earth. They don’t run out, and they’re better for the environment because they produce less pollution.  

Today, renewable energy makes up a growing part of our power, and many states including Illinois, Ohio, and Pennsylvania are using more of it every year. 

Knowing where your energy comes from helps you see what’s really powering your everyday life, from your morning coffee to the lights that guide you home at night. The kind of energy plan you choose matters, not just for your bills but also for the world around you. 

You might prefer a steady, predictable plan that keeps things simple, or you may want to support cleaner, renewable energy that’s better for the environment. 

At Santanna, we provide both electricity and natural gas plans to help meet your home’s everyday energy needs. Whether your goal is steady comfort, predictable costs, or supporting more sustainable options, your plan choice helps shape how your home uses energy. 

What Is Electricity? 

Electricity is one specific form of energy and it’s the one most homeowners rely on every day to power their electronics and appliances in their home.  

Electricity is created when tiny particles called electrons move through wires, forming an electric current. The electricity you get from your utility or energy supplier travels from power plants through transmission lines, into your neighborhood, and finally through the wiring inside your home to ultimately power your home.  

Electricity doesn’t exist on its own in nature the way sunlight or wind does. It has to be generated from other energy sources. According to the U.S. Energy Information Administration (EIA), electricity is a secondary form of energy, meaning it’s produced when another type of energy is converted into electric power.  

How Is Electricity Made? 

Electricity doesn’t just appear on its own. It has to be made by turning other types of energy into electrical energy. Most electricity starts at a power plant, where energy from fuel or natural sources is converted into power that can travel through wires to homes and businesses. 

Here’s how it works in simple terms: power plants use fuels like natural gas and coal. These sources create motion like spinning a turbine and that motion turns a machine called a generator. Inside the generator, magnets and wires work together to create the flow of electrons we call electricity. 

Once it’s made, electricity moves through high-voltage power lines across long distances, then through local utilities that deliver it safely to your home. From there, it’s ready to light your rooms, run your appliances, and power the things you use every day. 

Let’s see how that electricity actually reaches your outlets and how it powers your home from the inside out. 

What Is the Difference Between Energy and Electricity? 

The difference between energy and electricity is simple: energy is the power that makes things work, and electricity is just one form of that energy; the form that runs most of your home to power appliances and devices. 

The best way to decipher  the difference is through heating!  When your furnace burns natural gas, it’s using chemical energy to warm your home.  

But when you turn on an electric space heater, it’s using electrical energy flowing from your outlets to create that same warmth. Same end result, it’s just a different type of energy. 

The same idea applies to lighting. Sunlight brightening your living room is radiant energy from nature, while your lamp uses electrical energy that’s been generated, delivered, and converted into light indoors. In both cases, energy is doing the work; electricity is simply the delivery method inside your home! 

How Electricity Uses Energy to Power Your Home 

First, electricity has to be made. It’s made from power plants converting energy into electrical power homeowners can use to power their home.  

Once electricity is made, it travels a long path before it ever reaches your light switch. After leaving the power plant, it moves through high-voltage transmission lines that carry it across cities and towns. It then passes through smaller local power lines connected to your neighborhood and finally enters your home through a service line. 

Inside your home, electricity flows through a network of wires hidden in your walls. These wires connect to your electrical panel or breaker box, the gray box that controls and protects your home’s circuits. When you plug something in or flip a switch, you complete a circuit, allowing the electric current to flow through your appliance or light fixture. 

That electrical current is what powers everything from your refrigerator and washer to your TV and phone charger. It’s a constant, invisible stream that keeps your home comfortable, safe, and running smoothly every day. 

How Electricity and Energy Powers Everyday Devices 

Once electricity is created through energy and reaches your home, it starts doing work the moment you turn something on. Every device or appliance you use takes the electric current flowing through your walls and converts it into another form of energy, like light, heat, or motion. 

For example, when you turn on a lamp, the electrical energy in the wire becomes light and a small amount of heat inside the bulb. When you run your washing machine, that same electrical energy turns into motion (energy) that spins the drum. And when you use your heater on a cold night, electricity changes into heat energy that warms the air in your room. 

Every appliance is designed to make this conversion safely and efficiently. And according to appliance leader EnergyStar, the more efficient the device, the less electricity it needs to do the same job, and the lower your energy costs will be. 

Electricity and energy might be invisible, but you experience its power every day through the light you see, the comfort you feel, and the technology you use. It’s what keeps modern homes running smoothly and life feeling connected. 

How Electricity Is Measured: Watts, Volts, and Kilowatt-Hours 

When you look at your electric bill, you’ll often see the term kilowatt-hours (kWh), but what does that really mean? To understand how much energy your home uses (and what you’re paying for), it helps to know how electricity is measured. 

Electricity is measured in three simple units that describe how it moves, how much power your devices use, and how that adds up over time. 

1. Volts (V): Volts measure the pressure that pushes electricity through wires,  similar to how water pressure pushes water through a hose. The higher the voltage, the stronger the flow. 
2. Watts (W): Watts measure how much electricity something is using at a specific moment.  
3. Kilowatt-hours (kWh): Kilowatt-hours measure the amount of electricity that’s used over a specific period of time (usually an hour). This is the most common unit of measurement for electricity and it is what you’ll see on your monthly electricity bill.
   If you keep a light on all evening, or run your dishwasher after dinner, both activities use kilowatt-hours which is what your utility tracks on your electric bill each month. 

Together, volts, watts, and kilowatt-hours help you see how electricity flows, how fast it’s being used, and how it adds up on your bill. Knowing this makes it easier to spot which appliances use the most power and find simple ways to save. 

Why Does Energy and Electricity Matter? 

Energy and electricity matter because it affects almost every part of daily life at home, from comfort and safety to costs and conservation. When you know how electricity flows and how energy is used, you can make smarter choices that reduce waste, protect your home’s systems, and lower your monthly bills. It also helps you spot areas where you can save, like using energy-efficient appliances or choosing the right energy plan.  

When you understand how energy truly works, you’re better equipped to manage it — turning knowledge into savings, comfort, and control over your home’s power. 

FAQs 

Is electricity the same as energy? 

No — electricity is one form of energy that we use to power homes and devices. 

What type of energy is used in homes? 

Mostly electrical energy, plus chemical energy from natural gas. 

Who supplies my electricity? 

Your supplier (like Santanna Energy Services) provides your energy plan; your utility delivers it. 

How does time affect electricity costs?  

Using appliances during high-demand hours can cost more depending on your plan or utility rate structure. 

Energy and electricity keep your home running every day — from heating your rooms to powering your lights and appliances. Knowing how they work helps you make smarter choices, save money, and use power more efficiently. 

With Santanna’s Unlimited Energy plan, you can keep your supply charge steady and your home comfortable all year long.* Explore the Unlimited Energy plan and see how simple managing your energy plan can be. 

* Restrictions apply. Enrollment based upon program eligibility. Customers using more than 125% of normal monthly usage as determined by Santanna may be required to switch plans.