Change This Utilities Setting Immediately Before Summer Bills Spike
There's a simple way to make the most of your home's airflow, and it could save you big in an age of rising utility costs.
According to the consumer advocate nonprofit Powerlines, residential gas costs are up by 40% since 2019. Electricity costs have risen 40% since 2021, both of which have far outpaced general inflation — and anyone who’s been to a gas station since the war in Iran began knows the conflict hasn’t been kind to the price of oil.
The Powerlines report found that 80 million Americans are struggling with their utility bills, with many cutting back on basic needs like food and healthcare just to keep the lights on. However, adjusting just one setting in your home can slash your bills by double-digit percentages, helping budget-minded households endure the coming summer, when demand spikes and energy prices rise.
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A Few Degrees Can Save You Many Dollars
The weather is still cool in much of the country, which provides an opportunity to lower your energy bills without sacrificing too much in the way of comfort.
According to the Department of Energy (DOE), lowering your thermostat by just 7 to 10 degrees from its regular setting for eight hours a day can reduce your heating bills by 10% annually. The DOE recommends setting the thermostat lower when you’re away from home and asleep at night, letting your blanket do the heavy lifting for your heating system while you snooze.
Set Your Thermostat Based on Facts, Not Internet Rumors
The DOE cautions against believing a common myth that keeps many people from lowering their thermostats.
The myth: Furnaces must work harder to bring a cool space back up to a comfortable temperature after the thermostat is set lower, thereby negating any savings.
The truth: Your home loses energy to the surrounding environment more slowly the moment it drops below its normal temperature, which actually increases long-term savings.
In Summer, the Same Rule Applies in Reverse
Just as heat loss slows when your home’s interior temperature cools in the winter, the same principle applies in reverse during the hot months. By raising your thermostat when it’s warm, the higher interior temperature will leak energy to the surrounding environment more slowly, reducing your energy use and utility bills.
Of course, there are only so many blankets you can take off in the summer and sleeping in a sweltering room is a hard tradeoff for saving a few bucks on energy. However, Constellation Energy reports that running a ceiling fan counterclockwise in the summer can buy you back several degrees by blowing air down, just as reversing the blades to run clockwise can increase the interior temperature by a few degrees in the winter.
How Much Do You Stand To Save?
CNET conducted an experiment to test the savings potential of a few degrees on a variety of smart thermostats. While consumers must consider the upfront cost — $100 to $350 or more for top models — smart thermostats can pay for themselves fairly quickly, with average annual savings of $131 to $145.
The test found that nearly all models start delivering savings after one or two years and CNET cited Google Nest data showing that the savings potential exceeds even the DOE’s estimates, with 12% to 15% energy savings achieved in ideal settings with no other major adjustments.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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