How to Save Money on Utilities

By Steve Ward and the Mercury Team

Every penny counts when you’re looking for ways to save money on utilities. While you can’t control the cost of electricity, gas, or water, you can control how much of them you use. Small, mindful adjustments can add up to big savings over time — and they don’t have to mean giving up comfort or convenience.

Let’s explore some effective strategies to help you cut down utility bills, boost your home’s efficiency, and reduce your carbon footprint.

How Can You Lower Your Energy Bill?

Energy bills tend to be the largest portion of most utility expenses. Whether you’re heating in the winter, cooling in the summer, or simply running household electronics, electricity costs can escalate fast. Still, there are plenty of budget-friendly changes that can help you save.

Switch to LED bulbs

Are you still using traditional incandescent bulbs? Consider switching to LED lighting, which uses up to 75% less energy and lasts up to 25 times longer. Replacing bulbs in high-use areas like kitchens, bathrooms, and living rooms is one of the fastest, most cost-effective changes you can make to cut energy costs.

Install programmable or smart thermostats

Heating and cooling account for over half of the average home’s energy use. A programmable thermostat automatically adjusts temperatures when you’re asleep or away, preventing wasted energy. Smart thermostats go even further, learning your habits and optimizing comfort while keeping bills in check.

Unplug devices when not in use

Many electronics — e.g., computers, TVs, stereo systems — continue to consume power even when they’re turned off. To conserve energy, unplug their power units when not in use or take advantage of a power strip to disconnect multiple devices simultaneously.

Use energy-saving modes

Take advantage of eco- or low-power modes. Most modern appliances, from washers to computers, have these features. They’re designed to give you nearly the same performance for less cost.

Take advantage of off-peak rates

Many utility companies charge more during peak demand times—typically weekday afternoons and early evenings—and less during off-peak hours like nights and weekends. Running major appliances such as washers, dryers, and dishwashers during those lower-cost periods can lead to noticeable savings, especially if you’re on a time-of-use (TOU) plan. Shifting your energy use also helps reduce strain on the power grid and supports a more sustainable environment.

Consider a home energy audit

If you’re not sure where to start, a home energy audit can give you a clear picture of how your house uses — and loses — energy. A professional auditor can identify hidden air leaks, poor insulation, or inefficient systems that may be driving up your bills. Many utility companies even offer free or discounted audits, making it an easy first step before deciding on bigger upgrades.

What Are Easy Ways to Reduce Water Usage?

Water might seem inexpensive, but waste adds up, especially when you factor in the energy used to heat it. Even modest changes in household water use can lead to noticeable savings and support long-term conservation.

Fix leaks quickly

A little drip can waste hundreds of gallons a year. Check under sinks, around toilets, and near outdoor spigots for leaks. If you notice higher water bills without an obvious cause, hidden leaks could be the culprit.

Run full loads only

Wait until your dishwasher or washing machine is full before starting a cycle. You’ll save water and the energy used to heat it.

Upgrade to WaterSense products

For even greater savings, look for WaterSense-labeled fixtures, a designation from the U.S. Environmental Protection Agency (EPA) for products that meet high water-efficiency and performance standards. These fixtures use at least 20% less water while performing just as well as standard models. Replacing older toilets, faucets, and showerheads can save thousands of gallons of water each year and hundreds of dollars in utility costs. A complete bathroom upgrade with WaterSense products may even pay for itself in about a year.

How Can You Make Heating and Cooling More Efficient?

Keeping your home comfortable doesn’t have to mean higher energy bills. A few practical updates and regular care can make a noticeable difference in efficiency—and your wallet.

Seal windows and doors

Drafty windows and doors can let in outdoor air, forcing your system to work harder. Use caulk or weatherstripping to seal gaps, especially before extreme weather seasons.

Replace air filters regularly

Dirty filters restrict airflow and strain your HVAC system, which increases energy consumption. Check filters monthly and replace them every one to three months.

Use ceiling fans wisely

You may use your ceiling fan primarily in warm months, but it can actually be a year-round energy saver. Set it to spin counterclockwise in summer to push cool air down and make the room feel more comfortable without lowering the thermostat. In the winter, switch it to run clockwise at a low speed to pull cool air up and gently circulate warm air from the ceiling, helping your heating system work more efficiently.

Schedule annual maintenance

Having your heating and cooling systems serviced once a year can catch small issues before they turn into expensive problems, helping your system stay efficient and reliable. Regular tune-ups can also extend the life of your equipment and keep energy use in check. If you have a maintenance plan through your provider, this service might already be included, so it’s worth checking before scheduling your next appointment.

What Habits Help Cut Daily Utility Costs?

Good habits aren’t just for workouts or diets. Incorporate a few energy-friendly habits into your daily routine. Over time, they can help you cut waste and stretch your energy dollars further.

• Turn off the lights when leaving a room.
• Wash clothes in cold water — it’s just as effective for most loads.
• Shorten showers by even two minutes to save water and heating costs.
• Air-dry dishes and clothes when possible to reduce dryer and dishwasher energy use.
• Open curtains during the day in winter to let in warmth, and close them during summer afternoons to keep heat out.

“Harnessing natural lighting is one of the best ways to make your home more eco-friendly. Open curtains and blinds during the day to eliminate the need for artificial lighting,” says Steve Ward, Director, Strategic Planning & ERM. “You can also use light-colored curtains or reflective window films to brighten your space and reduce heat transfer.”

Are There Long-Term Investments That Save Money?

If you’re ready to go beyond short-term savings, consider home improvements that increase efficiency for years to come. While these upgrades require an upfront cost, they can lower bills and potentially boost your home’s value.

Upgrade to ENERGY STAR® appliances

ENERGY STAR® is a program that certifies products meeting strict energy-efficiency standards. These appliances use less power and water without sacrificing performance. Upgrading to ENERGY STAR-certified appliances can reduce your household utility bills by up to 30%, saving roughly $875 over the lifetime of each product while also helping the environment.

Add insulation

Proper insulation in areas like attics, walls, crawl spaces, and basements helps regulate indoor temperatures and keeps heating or cooling from escaping. According to the U.S. Department of Energy, upgrading insulation can save an average of 15% on home heating and cooling bills, or up to 10% of total energy costs.

Install solar panels

Homes with good sun exposure can benefit from solar energy. With continued use, panels can cut your electricity bill or even erase it in some cases. Certain incentives, tax credits, or rebates may also be available, making the initial cost of home solar panel installation more affordable than many homeowners expect.

Explore smart home systems

With smart home systems, devices such as lighting, thermostats, and sprinklers are all connected and can be controlled right from your phone or with a voice command. This technology helps automate energy savings, adjust settings based on your schedule, and give you better control over your home’s overall usage.

Can Insurance Play a Role in Utility Savings?

Insurance doesn’t directly lower your utility bills, but it can help protect your home — and your budget — from unexpected issues that drive costs up. Here’s how:

• Covers repairs after damage that impacts efficiency. If a burst pipe, roof leak, or electrical issue causes energy or water loss, your homeowners policy may help cover the repair costs.
• Prevents minor problems from becoming expensive ones. Covered damage caught early, such as leaks or faulty wiring, can reduce long-term energy waste and higher utility expenses.
• Protects major systems and equipment. Depending on your policy or add-ons, coverage may extend to heating, cooling, or electrical systems if they’re damaged by a covered event.
• Offers expert guidance and resources. Mercury Insurance provides support and information to help homeowners maintain safe, efficient properties year-round.

Smart Choices Add Up

By adopting energy-saving habits and making small changes around your home, you can significantly reduce your utility bills and lead a more eco-friendly lifestyle. Looking for another way to save money? Choose Mercury for your homeowners insurance or renters insurance and enjoy best-in-class coverage at an affordable rate. Contact us today for a fast, free quote!