You will save more money with energy rebates if you are willing to change your electrical fittings and appliances to models that consume lower energy. Energy rebates are incentives that are offered by the state and utility companies.

These programs put money in your pocket for changing to appliances that are more energy efficient. Not only will you get some cash in your pocket, you will also have a substantial reduction in your monthly utility bill. Read on for more information.

• Types Of Rebates
• The Benefits Of Federal Tax Rebates
• Energy Rebates Can Give You Continual Savings
• What is Appliance Discounts in Rebates?
• How Much Money do You Save With Energy Star?
• How do Utility Companies Benefit From Rebates?
• How Does Energy Rebate Work?
• How Much Money Can You Save by Being Energy Efficient?
• Are ENERGY STAR Refrigerators Worth it?
• Does ENERGY STAR Cost More?
• What Are Utility Rebates?
• Why do Companies Use Rebates?
• What Are Utility Incentive Programs?
• How Much is The Energy Rebate?
• How Can I Reduce my Electric Bill?
• Why is my Electric Bill so High?
• How can I Reduce my Utility Bills?
• What is The Disadvantage of Energy Star Rating Appliance?

Types Of Rebates

Rebates are offered in different ways. There are community and city rebates, utility rebates, manufacturer rebates and federal tax credits. It is not possible to go into the details of the various types of incentives but you will be provided with enough details to open your eyes to what is available. This information will enable you to take the first step to save more money with energy rebates.

1. Product launches

When introducing new products, it is common to link spend on the new range to discounts on regular purchases.

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For example, a supplier might offer an extra 1% discount across the entire product range in exchange for a spend of $x on the new product. This type of deal is also a great way to move people from placing the same ‘regular’ order month in month out.

For the company who wants to stock the latest products anyway, this deal is enticing. Until, that is, it comes to reconciling money spent on one range with discounts achieved on another. Most standard purchasing systems can’t help with this, but unless accurate records are kept the deal can fail to be realized.

2. Growth incentives

Where the supplier is keen to increase the total volume not just the individual order volume, a rebate based on incremental growth in orders is often used.

This could take the form of a year on year target, with a supplier rebate applying if the purchased volume exceeds the growth baseline. That in itself can cause problems for buying groups or multi-branch operations who sometimes find it difficult to aggregate the total spend by product line from the previous year.

3. End of life promotions

As old versions are being phased out, suppliers might plan to ship as much of the remaining stock as possible before the new version appears. This is sometimes achieved through extra volume discounts on the old lines.

The same thing happens with changes to packaging design — buyers are encouraged through specific time-based discounts to shift quantities of the old design before the new one is released.

4. Product mix incentives

To encourage buying groups and distributors to make purchases across a range of products, suppliers might provide a rebate based on total spend over a period. Where the buyer usually buys only a few lines, this incentive is used to try to switch them away from other suppliers for other product lines.

Suppose you supply veterinary products and a buying group buys only medicines from you, and tends to get pet toys and accessories from elsewhere. The buying group may have a relatively fixed demand for your medicines, and therefore little in the way of negotiating power.

However, by offering a reduction if they include other product lines into the mix, they get a discount on their medicine purchases and the supplier gets larger orders across the whole product range.

5. Central distribution centre rebates

In order to cut logistics costs, some suppliers prefer to deliver to a central distribution centre (CDC). This leaves the buyer with the cost and task of distributing to their branches / buyers from their CDCs. For those companies who have existing transportation routes between their CDC and branches anyway, this can be an attractive proposition.

In these cases, whilst the purchasing company isn’t adding too much to their own costs by agreeing to ship from their CDC to branches, they can benefit from the discounts offered. In fact, we know of at least one case where the total value of central distribution centre rebates funds their own transportation division!

6. Marketing funds

Whilst these are not rebates per se, the provision of marketing funds conditional upon actually carrying out the marketing activity does impact financial reporting and needs to be accounted for — usually because the promised funds need to be accrued and claimed for after the event has taken place. The difficulty is that most purchasing systems don’t provide the means to collate all the evidence that is needed for a claim.

7. Conditional discounts

Any number of conditions could be applied to drive purchase decisions in support of the suppliers’ commercial and financial goals. Some examples include:

1. A volume discount across all products.
2. A rebate on a product range, provided the volume purchased exceed x in y months.
3. A discount on one product range dependent on purchases of another. If you buy x of these you will get a discount of y off those.

The Benefits Of Federal Tax Rebates

Federal tax rebates are beneficial because a tax credit has more value than a corresponding tax deduction. This is because tax credits lower your tax with the equivalent dollar amount while a deduction is based on a specific percentage of the tax that you owe.

As a consumer, you can add a list of your purchases to your federal income tax form and this will reduce the amount of federal tax that you will pay at the end of the year.

Energy Rebates Can Give You Continual Savings

The governments of most states have incentive programs that encourage the use of environmentally friendly technology. You can take advantage of the money back programs provided by the state or federal government if you are ready to install power saving devices and green technology appliances in your home.

A company can get tax reductions for replacing high pollution equipment with newer machines that are friendly to the environment. This incentive is provided by the government in other to reduce the level of pollution in the environment. A company that is ready to go green and cut down its emissions can take advantage of this opportunity. Rebates are also available for smaller businesses that are ready to go green.

Motorists can also save more money with energy rebates. Fuel discounts are usually provided for hybrid cars. Hybrids are vehicles that are designed to run on petrol as well as bio-fuel. The car runs most of the time on bio-fuel while the petrol tank is used as a reserve when bio-fuel is not available. Using this type of fuel supply considerably cuts down the carbon emission that is released into the atmosphere.

What is Appliance Discounts in Rebates?

Appliance discount is a form of rebate that is available to consumers. Appliance discounts make it possible to involve a larger percentage of the population in the drive to clean up the environment.

Consumers at various levels are encouraged to switch to appliances that use lower amounts of energy so as to qualify for rebates. Major appliance stores are also involved in this effort to save more money with energy rebates.

How Much Money do You Save With Energy Star?

Energy Star is a program by the Environmental Protection Agency and the Department of Energy. An appliance with an Energy Star label has been certified to save energy, money, and the environment. Many brands offer appliances that meet the Energy Star criteria, such as Samsung, GE, and LG, as well as Miele, Hotpoint, Blomberg, Beko, Insignia, Marathon, Daewoo, and Crosley.

In addition, there are Energy Star Best Value appliances for consumers on a budget.

“When it comes to comparing appliance models, the EnergyGuide label lets homeowners know how much energy a product uses and how that compares to similar models,” Daigle says. “One unique feature is that it includes an energy consumption indicator, which positions the model compared with the most efficient and least efficient models in the same class.”

Following are the energy-savings for popular appliances types.

Clothes washers

The average family funnels approximately 300 loads of laundry through the washing machine each year. An Energy Star certified washing machine can reduce your energy costs by 33% and cut your water costs by more than 50%. The EPA also notes that more efficient motors spin more water out of your clothes, which means your dryer doesn’t have to work as hard.

Clothes dryers

Admittedly, clothes dryers use a lot of energy to dry your laundry. However, a dryer that bears the Energy Star label uses 20% less energy than a standard model.

Refrigerators and freezers

An Energy Star certified refrigerator uses 15% less energy, and the EPA states that it uses less energy than a 60W light bulb.  An Energy Star certified freezer uses 10% less energy than one without the label.

Dishwashers

An Energy Star certified dishwasher uses 10% less energy and 20% less water. According to the EPA, over the lifetime of the dishwasher, you will save more than 1,900 gallons of water. The dishwashers that earn the certification are more advanced than older models and can clean much more efficiently.

Dehumidifiers

You may not have realized how much energy a standard dehumidifier uses. According to the EPA, it consumes more energy than a washing machine, dishwasher, and refrigerator combined! However, a model with an Energy Star label uses 15% less energy and will save you $175 over the lifetime of the appliance.

Room air cleaners and purifiers

Energy Star certified room air cleaners and purifiers offer significant energy savings. They’re 40% more energy-efficient, which means you would save $25 a year compared to using the standard versions of these appliances.

Room air conditioner

By replacing your room air conditioner with one that bears the Energy Star label, the EPA states that you will spend less than $75 a year to operate it. That’s because the appliances that have earned the label use higher quality insulation materials, and have a better seal between the window opening and the unit.

How do Utility Companies Benefit From Rebates?

Utilities set annual energy savings goals which they then strive to meet. Offering incentives to commercial customers is an energy-saving alternative to the greater capital expense of expanding power plant capacity. It is often more economical for utility companies to offer rebates than to build a new power plant and deal with increased infrastructure maintenance.

Rebates offer huge benefits to your business. By implementing lighting measures that reduce the energy used in a given space, you will save money on your electric bill. Utility companies “reward” those who install energy saving equipment by offering rebates – so essentially, you are being paid to save!

These rebates help lower the initial project cost of the energy-saving measures, which in turn shortens the payback period and makes the overall investment more attractive to property owners. Just as important as the financial implications of these rebate programs to a business owner is the benefit to our environment by utilizing energy efficient lighting.

How Does Energy Rebate Work?

Rebates work differently than tax credits by getting cash back into your hands more quickly after you make a purchase. There are no federal rebates for energy efficient purchases at this time. However, many state governments, local governments, and utilities do offer rebates for energy efficient purchases. Some manufacturers also sponsor special offers that can make efficient products more affordable.

Rebates and special offers can generally be combined with other incentives like tax credits, and many are only available for a limited time, so do your research before making a purchase. Search for tax credits and rebates on energy.gov and find incentives from ENERGY STAR partners.

In addition to incentives like tax credits and rebates, there are financing options available if you are interested in making energy efficient home improvements. The new PowerSaver Loans program offers loan options for:

• Smaller efficiency projects
• Larger efficiency projects that may require a second mortgage, such as solar installation
• Energy rehab loans for a first mortgage, either for a new home purchase or a refinance of an existing mortgage

How Much Money Can You Save by Being Energy Efficient?

The U.S. Department of Energy estimates that the typical household can save 25% on utility bills with energy efficiency measures, which amounts to over $2,200 annually.

Although energy efficiency is often the more expensive option in the short term when compared with conventional alternatives, utility bill savings over the life of the efficient product can fully offset the initial cost premium and yield an implicit return on investment for homeowners.

With the nominal prices of household site fuels only projected to rise over the next couple decades due to increasing production costs, this makes an even stronger case for an investment in energy efficiency today.

There are a variety of energy efficient upgrades you can make in your home, ranging from simply replacing your light bulbs to more intensive projects like sealing air leaks and replacing windows. Energy efficiency is known to be a cost-effective investment, but the actual amount of savings differs based on the upgrade in question.

Gross energy savings are positively correlated with the cost and difficulty of the upgrade, which means that more extensive home renovations will result in greater savings over time.

Furthermore, a combination of compatible upgrades in a “whole-house” approach will earn disproportionately greater savings relative to their total initial cost. In fact, the Department of Energy estimates that you can potentially reduce your utility bills by up to 30% through multiple energy efficient improvements in interior temperature regulation.

Are ENERGY STAR Refrigerators Worth it?

Replacing an older refrigerator with a newer model is also a great option to save you money, especially since refrigerators have seen significant gains in efficiency in recent years. Looking for ENERGY STAR-rated refrigerators is the best way to take advantage of efficiency gains and the benefits they provide for the planet and your pocketbook.

If you’re looking for the most energy-efficient refrigerator options to meet your needs, you are in luck. The U.S. Environmental Protection Agency’s ENERGY STAR Program, which helps businesses and consumers save money by certifying more energy-efficient products, has a refrigerator program.

ENERGY STAR refrigerators are excellent options because they use less energy and save money over time—usually about 9 percent over non-ENERGY STAR models. Given the improvements in the efficiency of refrigerators over the years, replacing an older model with a new ENERGY STAR model will save even more. The better energy efficiency in these newer ENERGY STAR refrigerators comes from improved insulation and more efficient compressor technology. 

The wattage of newer ENERGY STAR refrigerators is impressive. While refrigerators typically range in 100-150 in wattage, an ENERGY STAR model with the freezer on top can use less energy than a 60-watt light bulb.

When thinking about how many watts of electricity it uses, it is essential to remember that refrigerators don’t use power consistently throughout the day. The fridge’s compressor cycles on and off throughout the day; when it is on, it uses more energy. You can hear it too when your refrigerator kicks in and starts making noise.

Does ENERGY STAR Cost More?

First, let’s compare the prices of ENERGY STAR appliances versus non-certified models. Surely the ENERGY STAR products cost more, right? Well, you’d be surprised. It used to be the case years ago – non-certified appliances could cost anywhere from $30 to $200 less than their ENERGY STAR certified counterparts. That’s a lot of money just to hope the investment pays for itself.

Thanks to the high demand of ENERGY STAR products over the past few years, manufacturers have developed more certified appliances than non-certified. This means the cost has decreased so much that ENERGY STAR products no longer cost more than their counterparts, and, in some cases, cost even less.

So now that we know we won’t be investing extra money by choosing an ENERGY STAR over a non-certified product, let’s see how much we can actually save with our decision. The following chart pulls information from ENERGYSTAR.gov to give you a quick overview of key household appliances and their cost savings.

Bill Savings for 2015 ENERGY STAR vs. 2015 Non-certified Models

	Cost Savings per Year	5-year Savings*	Average Lifespan	Lifespan Savings*
Clothes Washer	$40	$189	11 years	$415
Clothes Dryer	$16	$67	12 years	$160
Dishwasher	$2	$10	10 years	$20
Dehumidifier	$17	$71	7 years	$100
Refrigerator	$6	$30	12 years	$72
Freezer	$4	$20	11 years	$44
Air Conditioners	$11	$55	9 years	$99
Air Purifier	$27	$119	9 years	$215

What Are Utility Rebates?

States, local governments and utilities offer rebates to promote the installation of renewable energy systems and energy efficiency measures. The majority of rebate programs that support renewable energy are administered by states, municipal utilities and electric cooperatives; these programs commonly provide funding for solar water heating and/or photovoltaic (PV) systems.

Most rebate programs that support energy efficiency are administered by utilities. Rebate amounts vary widely based on technology and program administrator.

Utility rebates are part of a program to support renewable energy and energy efficient upgrades. They’re administered by states, municipal utilities, organizations, and electric cooperatives. And the good news is, they can save you a lot of money as you take your first steps towards energy efficiency.

As the need for Eco-Friendly changes and clean energy initiatives increase, many companies and organizations have begun offering financial incentives for businesses looking to decrease pollution and implement energy efficient programs.

Why do Companies Use Rebates?

For companies, rebating provides numerous advantages: it induces prospective customers to try their products; it boosts company sales and visibility; it relieves problems of excess inventory; and it attracts interest from retailers, who often help promote the offer and expand the shelf space allotted to the manufacturer’s goods accordingly.

Rebate promotions can thus help a company increase its leverage with retailers and develop brand loyalty and repeat business among consumers over the long run. Indeed, a study conducted by United Marketing Services (UMS) found that rebates are an effective means of establishing product awareness with consumers. In addition, the information consumers provide on rebate forms can be used to target future promotions.

What Are Utility Incentive Programs?

At one time, the incentive programs launched by utility companies often centered around rebates for purchases of energy-saving equipment. While these programs are still around, many utilities are shifting course.

“Now, the trend is to offer a financial incentive per unit of energy saved,” says Howard Geller, executive director with Southwest Energy Efficiency Project, a public-interest organization promoting greater energy efficiency and clean transportation in Arizona, Colorado, Nevada, New Mexico, Utah, and Wyoming. “It’s ‘pay for performance’ versus paying for hardware.” As part of this shift, many programs also strive to help energy consumers build a culture around energy efficiency.

The concept of pay-for-performance has been around for about twenty years. However, it now is “entering a new paradigm,” says Giselle Procaccianti, commercial and industrial energy efficiency program manager with Northeast Energy Efficiency Partnerships, a non-profit accelerating energy efficiency in the Northeast and Mid-Atlantic states. Previously, it wasn’t uncommon for utilities to estimate savings and offer incentives before any new equipment was even installed.

Now, some pay-for-performance programs require minimum energy savings targets, and some evidence the facility has met them. This is largely a result of advances in metering systems that make it easier for energy users to monitor and adjust their usage in near real time, Procaccianti notes.

Another driver behind the changing incentive programs is the fact that many of the easy wins — say, replacing T12 lighting systems with more efficient T8 or LED systems — have already occurred. In addition, advances in other technologies, such as energy storage systems, make a wider range of incentive programs feasible.

Changing the culture

One of the most significant shifts among utility incentive programs is to a focus on promoting organizational cultures that incorporate continuous improvements in energy efficiency. For instance, some utilities offer incentives when organizations boost the efficiency of their equipment through better scheduling and fine-tuning the set points, Geller says.

Some work with organizations to help them set energy savings goals over multiple projects, extending over multiple years, and then track progress toward these goals. “It’s a commitment to continuous improvement versus just one-off projects,” he adds.

Energy Trust of Oregon works with five investor-owned utilities to deliver energy efficiency programs to 1.6 million residential, commercial, and other customers in Oregon. Its Market Solutions program is designed for construction of small- to medium-sized buildings, and helps building owners and managers select energy efficient equipment. The incentives they can earn increase as their energy savings increase.

The program offers varying packages of incentives. For instance, facilities that achieve a 15 percent reduction in lighting power density, and install code-required automatic lighting controls and advanced power strips at all workstations may earn up to $.20 per square foot. Facilities that cut lighting power density, and install automatic lighting controls in all spaces and advanced power strips at all workstations can earn up to $.40 per square foot.

How Much is The Energy Rebate?

The Family Energy Rebate helps NSW family households with dependent children cover the costs of their energy bills.

If you receive your bill directly from your energy retailer and you meet the eligibility requirements, you can apply for the Family Energy Rebate online.

Eligibility

To be eligible for the NSW Family Energy Rebate in a given financial year, you must:

• be a NSW resident
• be the account holder of an energy retailer
• have been the recipient of the Family Tax Benefit (FTB) for the previous financial year and have had your entitlement to the FTB payments finalised by Centrelink
• ensure the person in your household who’s registered as the FTB recipient lodges the application. The recipient is the person who receives correspondence on FTB from Services Australia.

What you need

Before you apply you’ll need to have:

• lodged your tax return for the last financial year with the Australian Taxation Office. If you or your partner didn’t need to lodge a tax return, notify Services Australia of this. They cannot finalise your FTB until they have this information.
• received a confirmation letter from Services Australia that your FTB has been finalised for the last financial year. 

When you’ve done both these things, you’re ready to apply for a rebate. You’ll also need:

• your Services Australia Customer Reference Number (CRN)
• your Department of Veterans’ Affairs (DVA) number (if applicable)
• your personal and contact details
• a copy of your recent energy bill.

How to apply

1. Check the eligibility requirements.
2. Select the ‘Apply online’ button.
3. Complete and submit your application.

If you do not wish to apply online:

1. Download and complete the Family Energy Rebate Application Form 2021-2022 – PDF.
2. Attach a copy of your most recent energy bill.
3. Lodge your application by post or email to the details on the form.

How Can I Reduce my Electric Bill?

Keeping the lights on isn’t cheap — never mind the air conditioning, furnace and hot water heater. In fact, the typical family spends more than $1,400 per year on utilities, according to the Energy Department.

Tweaking your usage can lower your bill by as much as 25%. Try these effective ways to save money:

Heating and cooling

Home heating and cooling are the biggest culprits behind hefty utility bills — and the best places to look for cost-cutting opportunities.

1. Check seals on windows, doors and appliances: Make sure your fridge and freezer are well sealed to keep the cold air where it belongs. The same goes for doors and windows. A bad seal allows energy to seep out, draining your wallet in the process.

2. Fix leaky ductwork: Improve the efficiency of heating and cooling systems by repairing leaky heating, ventilation and air conditioning ducts.

3. Give your thermostat a nudge: Set your thermostat back 10 to 15 degrees when you’re asleep or away from home. Doing so for eight hours can lower your annual heating and cooling costs by around 10%. A programmable thermostat does the work for you.

4. Adjust your fridge and freezer temperature: Set your fridge to 38 degrees and your freezer between 0 and 5 degrees. This will keep your food fresh, but your fridge and freezer won’t need to work as hard to maintain the temperature.

Water

Hot water is the second-largest expense in powering most homes, according to the Energy Department. Cutting back on your hot water usage — in the shower, laundry and dishwasher — can make a sizable dent in your overall energy bill.

5. Take shorter showers: Trimming two minutes off your shower time can cut your water usage by five gallons.

6. Replace your showerhead: An efficient showerhead can reduce your water usage by 2,700 gallons per year. Look for one with the WaterSense label, which is certified to meet efficiency criteria set by the Environmental Protection Agency.

7. Don’t wash clothes in hot water: Stick to warm or cold water when you do laundry and cut your per-load energy usage by at least half.

8. Fix leaky faucets: That drip, drip, drip isn’t just annoying, it wastes gallons of water.

9. Adjust the temperature on your water heater: The default temperature setting on water heaters is typically 140 degrees. Lowering it to 120 degrees can reduce your water heating costs by up to 10%. Leaving town for a few days? Turn your water heater to the lowest setting to conserve energy usage.

10. Purchase energy-efficient appliances: If you’re in the market for a new washer, dishwasher or water heater, buy an energy-efficient model to yield long-term savings. A dishwasher with the Energy Star label is required to use 3.5 gallons of water or less per cycle, compared with the more than 10 gallons used by some older models. Prioritize appliances that run most often, like the fridge, HVAC system, water heater, dehumidifier, TV, washer and dryer.

11. Ask about discounted rates: Some utility providers offer cheaper rates during certain times of the day, making laundry and other energy-intensive chores 5% to 25% less expensive during off-peak times.

Power and lighting

Keeping the lights and electronics on accounts for roughly 11% or more of a home’s energy usage.

12. Swap out your lightbulbs: Save $75 per year by swapping out the bulbs in your five most-used light fixtures with compact fluorescent or LED bulbs that bear the Energy Star label.

13. Install dimmer switches: Dimmers let you set the brightness in a room to suit your needs, setting the mood and saving electricity.

14. Use smart power strips: Some electronic gadgets never truly power off; instead, they sit in standby mode using a trickle of power that can add up over devices and time. These are usually — but not exclusively — items with a remote control, because the remote sensor needs power while waiting for your input. Plug these electronics into a smart power strip, which cuts off the current when the devices aren’t in use.

15. Do an energy audit: Utility providers will often conduct a home energy audit, sometimes for free, and can identify additional ways to reduce your energy usage.

Why is my Electric Bill so High?

Are you the type of person who dreads receiving your electricity bill every month? It can be daunting to maintain a budget when you’re not sure how much your utilities will cost each month. While it’s usually easy to blame your provider for hiking up rates, your bill is actually much more likely to be high because of your usage.

To help you start saving money, we’ve identified a few of the culprits behind high household power usage and reminders for how to lower your rate of use.

1. Letting Vampire Appliances Bleed You Dry

One of the main reasons your electric bill may be high is that you leave your appliances or electronics plugged in whether you’re using them or not. While that might not have been such a problem years ago, most modern appliances and gadgets draw electricity when turned off. This is mostly because much of modern technology never really powers down.

When you press the “Power” button on your DVR, computer, or television, it actually transitions to a standby mode so it can be turned back on faster, either for continued use or to carry out a scheduled task like recording a TV show or brewing a pot of coffee.

The problem is, these devices are sitting idle, sucking electricity out of your home while waiting for a command from you, or waiting for a scheduled task to run. Anything with a clock, such as microwave ovens and coffee makers — and even older technologies, like VCRs — need the power to keep time while turned off.

Solution:

You can start saving energy by connecting devices to power strips and turning off the power strips when you’re not using them. That way off will really mean off as you’ve effectively disconnected the device from the power source.

2. Feeding Energy Hog Appliances

Big appliances, like dishwashers, clothes washers, and clothes dryers have insatiable appetites for electricity, and using them too often can drive your electricity bill way up. In fact, the average American family does almost 400 loads of laundry a year and uses almost 40 gallons of water for a full load. However, many of those “loads” may not actually be using the appliance to its fullest capacity.

Solution:

For your dishwasher, make sure that you fill it to capacity before you run it, choose an appropriate wash cycle, and change the drying setting to use no or low heat. For clothes washers and dryers, try having only one laundry day each week, fill your loads to capacity and select low heat for drying

When it comes to lighting, many people make the mistake of using lights to affect the brightness of an entire room, which can contribute to high electric bills. However, lighting is efficient only when used directly to provide light to specific areas of a room, such as couches, chairs, kitchen tables, and workspaces.

Full room ceiling lights are much less effective than individual lamps for providing the light you need. You’ll also pay more on your electric bill if you keep lights on when nobody’s using them.

Ceiling fans only affect the temperature of the room in which they’re installed, so it doesn’t make sense to leave a ceiling fan on if nobody’s in the room. Additionally, ceiling fans have a toggle switch that allows the blades to switch direction for optimal efficiency based on the season.

Solution:

Use lighting only for specific areas that are occupied and make sure to turn off lights when those areas are no longer in use. Change out inefficient incandescent light bulbs for energy-efficient CFL bulbs to save money when the lights are on.

Turn your ceiling fans off when nobody’s in the room and be sure to set the toggle switch so that the blades run counter-clockwise during the summer and clockwise during the winter to circulate air more efficiently.

4. Using Appliances Past Their Prime

Using old appliances is probably one of the bigger reasons why you’re paying more on your electric bill. The fact is old appliances simply use more energy than new energy-efficient models. That old-fashioned refrigerator or oven might be cute and trendy in your retro kitchen, but they also drive your electric bill through the roof.

Even your dishwasher, washing machine, and dryer that was built in the 1990s are sucking you dry, as Energy Star didn’t begin rating those appliances until after 1997.

Solution:

This one’s easy. Upgrade your appliances with new energy-efficient models. A new energy-efficient refrigerator, for example, uses about four times less electricity than an older model. You can even get a new model with a retro design to keep your kitchen trendy.

5. Device-Charging Frenzy

Look around your home at all the technology that uses chargers: cell phones, MP3 players, iPads and tablet PCs, electric razors, electric toothbrushes, laptops, portable game systems, and a whole slew of similar devices. The more tech- and gadget-oriented you are, the more likely you are to have these devices plugged in and sucking energy from your home — and the more likely you are to pay an expensive electric bill because of them.

Solution:

Unplug AC adapters and chargers from sockets when not actively charging a device, as they’ll pull electricity simply from being plugged in. Also, make sure to only charge your devices when they need it. Unnecessary charging not only costs money, but it can also shorten your gadget’s battery life.

So, the next time your electric bill sends you into a wave of budgetary panic, consider the source before calling out your energy provider. Chances are, you have a thing or two to change about your household energy consumption.

How can I Reduce my Utility Bills?

The average family spends $126.65 per month on their electric bill. That adds up to more than $1,500 per year. And when money is tight, reducing your electricity bill is one of the quickest ways to save each month. But if you’re like many people, you may not be sure how to do that. After all, we all have to use electricity, right?

We’ve rounded up a few of the best free ways to reduce your utility bill and save money right now.

1. Shop around

You comparison shop for cars, clothes and loans; you should also shop around for a cheaper utility provider, Greutman says.

“Call your power company and ask for a list of energy providers that they use; once you get this list compare prices and pick the lowest price provider,” she says. “You can save hundreds just by making this one simple phone call.”

2. Control your thermostat

Keeping your home too cool or too warm when nobody’s home is simply a way to transfer wealth from you to your utility provider.

So, if you son likes the house super cool to sleep in warm weather months, that doesn’t mean setting the temperature to a chilly temperature when he wakes up at 7 a.m. and heads off to work for the day. Or setting it to 66 degrees at 11 p.m. and keeping it at that low setting all night.

“Set the thermostat (higher) during the day when you aren’t home and at night when you are sleeping,” says Greutman. “By using a program, you won’t forget to lower it before you leave and wind up heating an empty home. I hate when this happens!”

To best execute that plan, a smart thermostat or a programmable one is the way to go. “I have one and schedule it to go down 6 degrees at night and turn back on when I wake up in the morning,” Greutman says. “You can also program it to go down during peak hours.” You may see annual savings of up to 1% per 8-hour period for each degree you turn down your thermostat, according to the U.S. Energy Department, or energy.gov.

Here’s a tip from this reporter: when freezing temperatures are past and spring is near, turn the heating system off completely and don’t start running the A/C until it starts getting uncomfortably warm in late May. You can basically get two months of heating and cooling for free.

3. Cool down your hot water heater

Sure, a hot shower feels good to get the day going. But heating the tank is a big energy hog. The average household spends $400 to $600 a year just to heat water, which accounts for 14% to 18% of the total utility bill, according to energy.gov. The default setting on hot water heaters is 140 degrees, but it’s OK to drop it down and still enjoy a warm water shower.

“Turn your water heater down to 120 degrees to save money,” Greutman says.

4. Run appliances late at night

Save money when you’re sleeping. Run appliances like the dishwasher and clothes dryer late in the evening or before bedtime, when energy goes on sale.

“Utility companies will charge more for energy that’s being used during peak times,” Greutman says. “Plan to run these appliances when costs are cheaper.”

5. Don’t forget about filters

Keep your heating and air conditioning unit running efficiently by changing the filters regularly, before they get filthy and start bogging your system down. Maintenance is good. Change your filter as recommended by the manufacturer, which can be monthly or quarterly depending on the quality of the filter you use.

“Make sure that you maintain regular service of your furnace (and A/C) by keeping it clean and changing the filter,” says Kumiko Love, founder of The Budget Mom blog.

When they get clogged up with dust, dirt and pet hair, the airflow becomes blocked, making your air-conditioning unit work harder until it decides to call it quits, says the PennyHoarder.com.

6. Lower lighting costs

You don’t have to sit in the dark to save money on your electric bill. Some lights use less energy than others. And you can also save by using timers that turn lights off automatically when they’re not being used, Love says.

“Switching out your incandescent light bulbs for LEDs can save money during the lifetime of the bulb,” says Love. “These types of bulbs use less energy, which in turn keeps money in your pockets.” LED lights last 42 times longer than incandescent bulbs and use 80% less power, according to superbrightleds.com.

Another good option for cost savings is using compact fluorescent lamps, or CFLs. “These work great in outdoor lighting that is left on for longer periods of time,” Love says. An ENERGY STAR-qualified CFL uses about one-fourth the energy and lasts ten times longer than a comparable traditional incandescent bulb, according to energy.gov.

7. Do use ceiling fans

“If you have ceiling fans, take advantage of them,” says Love. The reason: she says your A/C uses about 25% of your household’s energy, or roughly 36 cents an hour, the most of any appliance. “On the flip side, a ceiling fan costs only about a penny an hour,” she adds. And while a fan won’t bring down a room’s temperature, they can make a room “feel cooler.”

By using a fan and bumping up the temperature on your thermostat by 4 degrees, you can save $104 on summer cooling costs, she says. 

8. Unplug when offline

“I unplug everything that I’m not using,” Love says. Coffee makers and microwaves are perfect examples. Even in standby mode, there are a lot of things in your home that uses power. Computers and TVs consumer a lot more power, so unplugging these appliances can save you a lot of money.”

9. Wash clothes in cold water

Use the cold water setting on your clothes washer to use less energy on heating water. Water heating makes up about 90% of the energy it takes to operate a clothes washer, according to energystar.gov.

10. Remember, every penny counts

The more proactive steps you take to reduce your home’s energy consumption, the more you will save each month.

“It doesn’t have to be a lot of changes to see a difference in savings,” Love says.

What is The Disadvantage of Energy Star Rating Appliance?

Purchasing an appliance with the energy star sticker, in the United States, means the appliance will save the consumer anywhere between 20 to 30% more energy than what the government currently deems as efficient. Taking a closer look at the energy star rating systems, the following disadvantages must be considered.

1. Unreliability

Purchasing an energy star rated appliance is sometimes more costly. You purchase the appliance under the preconceived notion that you will save a great deal of money on the utilization of this rated appliance as compared to a less expensive, non-rated product for energy star efficiency. The claims you read and see regarding the energy star cost savings may be unreliable.

Many of the benefits that have been discussed and broadcasted are hard to verify and cannot be accurately measured. So be aware that in purchasing a new energy star appliance, you may not be saving as much in energy or in money as you had anticipated.

2. Reduction of greenhouse gases

For the environmentally-conscious consumer, you purchase an energy star rated appliance or consumer good based on the fact you will be helping the environment and reducing harmful greenhouse gases.

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As late as an audit performed in 2008, the program is coming under fire and scrutiny for the claims they have made regarding the reduction of greenhouse gases. The benefits from Energy Star may not be as fully understood as the committee once thought because of a lack of empirical and independently verifiable data.

3. Loopholes in ratings

Forgetting about unreliability for a second, energy star ratings can be obtained for individual appliances if you know how to circumvent some of the rules. For example, one test has shown the efficiency of a refrigerator. The refrigerator received a fantastic energy star rating.

However, during the testing process, the refrigerator’s ice maker was turned off. It is fairly unrealistic to think that most households use their refrigerator with the ice maker turned off.

4 – Out-dated testing rules

The rules and regulations for testing an energy star appliance are slow to evolve and change. Developed in the early 1990s, the ratings and regulations have not changed much since then. Therefore, the regulations become outdated and the benefits from an energy star rating are less known.

5. Lack of independent results

Manufacturers are generally responsible for testing their own products. There are no rules or regulations that require a manufacturer to provide independent results that verify their test results. Testing their own results may and do cause misleading statements and product ratings to consumers.