Due to rising prices, inflation, and the possibility of economic downturn, American seniors, especially those living on limited incomes in retirement, need to budget carefully. On average, Americans pay $429.33 per month for utilities, making it a good area to cut expenses.
However, it’s easier said than done. According to CBS News’ price tracking data, the cost of electricity has increased from $0.14 per kilowatt-hour in 2019 to $0.18 in 2024, a substantial 28.5% rise.
Fortunately, there are ways to lower household expenses. Here are some practical suggestions to help reduce energy costs and save more money:
Upgrading appliances to ENERGY STAR certified models, if financially feasible, is a good idea. These appliances are more energy-efficient than older ones and can effectively reduce utility bills. The average household using ENERGY STAR certified products can save around $450 per year on energy costs.
You can also try using energy-saving devices like induction stoves and solar water heaters. These devices can significantly save energy compared to traditional appliances.
According to the U.S. Department of Energy, the average American household wastes between $200 to $400 per year due to drafts around windows and doors and inefficient heating and cooling systems. Sealing drafts in the home can save 10% to 20% on energy expenses.
To address these issues, you can take the following steps:
– Seal drafts. Check for drafts around windows, doors, and electric curtains, and use sealants or weatherstripping to prevent drafts and reduce energy loss.
– Insulate properly. Ensure adequate insulation, especially in the attic and basement. Good insulation can maintain proper room temperature, reducing overuse of heating or cooling.
Even better, for these home improvements, you may be able to do it yourself.
Window treatments and shading can significantly reduce a household’s energy consumption. Data shows that curtains can reduce up to 33% of heat gain, while shading devices can reduce up to 77% of heat gain.
Maximizing energy savings:
– Choose appropriate shading devices like curtains, blackout curtains, blinds, or reflective films.
– Optimize placement. Hang curtains as close to the windows as possible.
– Choose suitable colors. Use neutral-colored curtains year-round. Light-colored curtains are suitable for reflecting sunlight in summer, while dark-colored curtains retain heat in winter.
By implementing these methods, you can create a more comfortable, energy-efficient, and cost-effective home.
Increasing the efficiency of heating, ventilation, and air conditioning systems can reduce household heating and cooling costs. Firstly, replace air filters every three months, or as per the manufacturer’s instructions. Subscribing to an air filter service may also save you some costs.
Additionally, you should have technicians perform annual maintenance on heating, ventilation, and air conditioning systems to check for leaks or damages that could affect system performance.
Smart thermostats can adjust temperatures automatically based on your daily habits, saving energy when you are away or sleeping. Some models even come with remote control capabilities for adjusting temperatures anytime, anywhere.
On average, you can save around $50 or 8% on heating and cooling costs annually. However, the amount saved may vary depending on climate, personal preferences, living conditions, and variations in heating, ventilation, and air conditioning equipment.
By choosing the right light bulbs, you can reduce your energy costs by hundreds of dollars annually. For example, switching to LED bulbs consumes less energy compared to traditional incandescent or fluorescent bulbs.
LED bulbs have a longer lifespan, significantly reducing lighting costs.
Moreover, you can open curtains and blinds during the day to utilize natural light for illumination, reducing the need for artificial lighting.
Conserving water is another area that is often overlooked. By following water-saving methods, you can reduce water expenses:
– Fix leaky pipes immediately to prevent water waste, as even small leaks can lead to high water bills over time.
– Install low-flow devices like showerheads, faucets, and toilets to effectively reduce water usage.
– Go green in gardening. Consider planting drought-resistant plants and installing rainwater collection barrels for garden watering.
When doing laundry, use cold water whenever possible. According to Consumer Reports, around 90% of energy used for laundry goes into heating the water.
Additionally, the Alliance to Save Energy notes that washing clothes with cold water can save $63 on electricity costs annually. This change is easy to implement, as most detergents work better in cold water.
Using ceiling fans can save on energy costs, as they consume only 10% of the energy used by central air conditioning.
In summer, set ceiling fans to rotate in a forward (counterclockwise) direction to push cool air from the floor upwards for a refreshing breeze. In winter, adjust ceiling fans to rotate in reverse (clockwise) to circulate warm air from the ceiling back down into the living space.
Energy-consuming appliances are known as “energy vampires” as they continue to draw power even when not in use if left plugged in.
Dan Mock, Vice President of Operations for Mister Sparky, a national electrical network, explains that unplugging rarely used small appliances and electronics can not only save on electricity bills but also protect devices from damage due to lightning storms or power surges.
According to research from Just Energy, a Canadian-based retailer of natural gas and electricity, the highest power-consuming “energy vampires” include:
– Electric toothbrushes
– Televisions
– Thermostats
– Computers
– Kitchen appliances
While not suitable for everyone, downsizing living spaces could be considered. After all, smaller living spaces require less energy for heating and cooling.
Moreover, using a microwave or toaster oven to cook small portions of food can consume significantly less energy than conventional ovens.
Asking never hurts, right? Many utility companies offer discounts to seniors to help them afford basic living expenses on fixed incomes.
For instance, Lifeline provides discounted basic services for seniors, including new phone installation services and monthly fees. Even if the discount on each bill is small, it adds up over time.
Low-income seniors may benefit from assistance programs provided by government agencies and utility companies. By doing a little research, you can find local programs, including the following potential options:
– Low-Income Home Energy Assistance Program (LIHEAP). This program helps low-income families purchase energy at a reduced rate, offering economic aid to cover heating and cooling expenses and ensuring healthy and safe indoor temperatures. Additionally, the program provides assistance in energy-related home repairs and weatherization.
– Weatherization Assistance Program (WAP). This program offers services such as insulation, sealing, heating, and cooling system upgrades to improve the energy efficiency of homes. It not only saves energy but also reduces utility bills, making home living more comfortable and secure. Moreover, the program conducts energy audits to identify the most effective energy improvement measures for each household.
– Emergency assistance. Emergency assistance is available in many states to ensure uninterrupted electricity for low-income households. You can call 1-866-674-6327 or 1-866-367-6228 (relay service) to inquire about assistance programs in your area.
If financially feasible, consider investing in renewable energy sources like solar panels. Although the initial investment may be high, in the long run, it can significantly reduce electricity expenses while supporting an environmentally friendly lifestyle.
Additionally, you may be eligible for energy tax credits for making energy-efficient home improvements. Under the 2022 Inflation Reduction Act, many energy-efficient home renovation projects qualify for tax credits and reductions. Through the Energy-Efficient Home Improvement Tax Credit program, homeowners can claim up to $1,200 in tax credits annually.
Even if you’ve implemented all the above measures, you can further reduce electricity costs by requesting a free energy audit from your utility company. During the assessment, they will check for issues such as window sealings, ductwork, and doors that may affect your home’s energy efficiency. Based on your home’s energy efficiency, they will provide improvement and repair recommendations.
Implementing these strategies can help seniors enjoy more financial freedom and significantly reduce living expenses. In the long run, these small changes can add up to substantial savings.
(Note: The original article was entitled “Cosy and Cost-Effective: Energy-Saving Tips for Seniors” published on the Due blog website. The content is for general informational purposes only and does not constitute investment, tax, legal, financial planning, real estate planning, or other personal finance advice. The accuracy and timeliness of the content are not guaranteed.)