If your electricity and other utility bills have gone up recently, you’re not alone. Why is my electricity bill so high is a question many people asked in early 2020 a month or so after countries around the world started shutting down and quarantines were put in place due to COVID-19.
Once the first round of utility bills started arriving, people suddenly realized there was a cost to the convenience of working from home. And they quickly realized how their utilities add up when spending more time around the house.
Working from home can increase electricity and energy costs 15% or more if there are multiple people working or doing home schooling. The top using energy appliances are space heating and cooling as well as hot water heating, all of which tend to increase in use the more time we spend at home.
For many people, the benefit of no commute was a time and cost savings. The average person probably didn’t think too much about the increased costs to them in terms of energy and water consumption in their home especially as they didn’t see the results until their first bills were received and they saw the cost. But if the decreased cost of commuting is lower than the increase in utility costs, you’re aren’t any further ahead.
Putting electricity usage into perspective
Electricity usage is measured in kilowatt hours (kWh) where 1 kWH = 1,000 watts. So for example when you see that your 55″ LCD Smart TV uses 110 watts on average, you can calculate the cost to use it. To calculate the cost for any appliance in your home by usage time, you use the following equation:
Wattage of Appliance x Number of Hours of Usage/1,000
1,000 represents 1 kWh.
So if you use your aforementioned 55″ LCD Smart TV for 2 hours, you would use:
110 watts x 2 hours/1,000 = 0.22 kWh.
If you pay $0.13 per kWh, your 2 hours of tv usage costs you about 3 cents. Not much to be sure but over time it adds up. More so when you start adding in the real energy hogs in the home, which we’ll detail shortly.
What does 1 kWh look like in reality?
Here are some common appliances found in the home and the amount of time you can utilize each to consume 1 kWh of power.
| Appliance | Usage type and time |
| Air conditioner | 10 minutes of operation for a 600 watt AC unit |
| Cellphone | 2 hours of daily charging for one month |
| Coffee maker | 12 pots of coffee |
| Microwave oven | 2 – 3 minutes of usage per day for one month |
| 1 desktop computer | 4 hours of usage |
| 60 watt light bulb | Leaving the light on from sunrise to sundown |
| Fan | 1.5 hours of operation of a 70 watt fan |
| Clothes iron | Iron your clothes for 22 minutes |
| 55″ LCD Smart TV | Watching a 110 watt-rated TV for about 9 hours |
| Clothes dryer | 1 hour using a 3000 watt dryer |
| Washing machine | 30 minutes using a 2000 watt washer |
| Vacuum cleaner | 37 minutes using a 1600 watt vacuum cleaner |
| Water heater | 15 minutes using a 4000 watt water heater |
Top 5 energy using appliances in the home
The average home consumes energy in the five main ways and degrees listed in the table below. You’ll notice that the most common energy source is electricity but gas is popular too.
| End Use | Share of Total | Energy Type |
| Space Cooling | 15% | Electricity |
| Space Heating | 15% | Gas, Electricity |
| Water Heating | 12% | Gas, Electricity |
| Refrigeration | 6% | Electricity |
| Clothes Dryer | 5% | Electricity |
Next on the list is lighting which interestingly was number 5 on the previous year’s list. Lighting now uses less as a total percentage of energy usage perhaps due to increasingly energy efficient low wattage bulbs.
Why is my electricity bill so high?
According to the US Energy Information Administration the average US household uses around 877 kWh per month or 10,523 kWH per year. At a rate of $0.13 per kWh, that results in a yearly electricity cost of $1,368 excluding taxes or any other fees that your provider may charge.
Estimates are that working from home could increase a household’s electricity costs alone by about 10% – 15% especially if there is more than one person working there and more so if kids are home doing online schooling. For the most expensive electricity states like Hawaii, Alaska, New York and California, it could be much higher.
When you work from home you are using many energy-reliant devices and appliances when you’d otherwise be at work:
- Electricity for your computers, cellphones, printers and other devices.
- Air conditioning and heating during the day.
- More use of lights.
- More cooking and use of coffee makers and kettles.
- More opening and closing of the fridge, windows and doors which increases energy costs.
- More hot water usage for hand washing and bathing.
- Use of the television and other electronics.
- Leaving more electronics plugged in even after they’ve been charged.
And if you’re a couple suddenly working from home, some of these costs will go up even more.
Children suddenly being home-schooled? Your above costs can go up even more still.
It’s not just electricity…water usage is higher too?
Not surprisingly around the world in 2020, commercial water usage went down and residential water usage went up. When you’re working or doing school at home and you’re told to wash your hands more frequently with soap, of course your water bill is going to increase.
If you’re working out at home instead of at a gym and having a second shower, you’re using more water and more hot water specifically which also adds to your electricity and possibly your natural gas bill if your water heater is gas-fired. In 2020 and 2021, stores could barely keep up with the demand for free weights, stationary bikes, bicycles and treadmills. More working out at home = more hot water used for showers.
And you’re flushing your toilet multiple times per day instead of at work, using more water to drink and for coffee and tea. It all adds up.
What about natural gas usage?
Overall, natural gas usage was down globally due to COVID-19 according to the International Energy Agency (IEA). While both residential and commercial gas usage was down due to lockdowns which did lead to an overall reduction in total consumption, mild temperatures in winter also helped to reduce the natural gas requirements. Without these mild temperatures, one would expect residential natural gas usage and costs to go up with more people working and remaining at home.
While the IEA expects natural gas demand to increase from 2021 – 2025, the ongoing lack of demand can have longer term implications on supply and price which could positively or negatively impact residential customers.
And if winter is colder, expect to see an uptick in natural gas and electricity usage for heating if you’re still at home. Dress warmly at home during the winter because turning the thermostat up even a few degrees adds to your energy bill.
Reduce energy costs when working from home
How many people were cut off electricity, gas or water in 2020 due to unpaid utilities bills? This hasn’t been publicly released but in 2016 in “better” times it was reported by Food and Water Watch that 1/20 people had their electricity disconnected due to lack of payment. It’s likely that this number was much higher in 2020 and in 2021. And probably for water and gas too.
For some people a 10% – 15% rise in utilities costs is something they can cover if begrudgingly. But for many others it’s the difference between having the utilities and being cut off even if they have a job.
While home offices have been the norm for many businesses particularly online ones, most people physically go to their place of work and didn’t have a choice to work from home. Suddenly you’re at home, the utility bills go up and you’re unsure how to cope. Here are some thoughts on keeping your energy usage in check:
Take advantage of natural light
As shown above, space heating and cooling tends to be the two biggest energy hogs in your home. During sunny days (even in winter) you can take advantage of natural light to not only keep electricity bills down by using your lights less. In winter, keeping the drapes and blinds open during a sunny day helps to heat the house naturally so you can save money on heating costs. In the summer, close the shades to keep the heat out and lower your air conditioning bills.
When seasons change as it goes from hot to cold and cold to hot, you can also delay using your furnace and AC respectively for a month or longer and save more.
Lower your water heater temperature
Water heating is third on the list of energy usage for the average household. Set your water heater temperature no higher than 120 degrees. It’ll save on heating costs and you won’t notice the difference as water will still be hot enough. Also, keep an eye on your water heater age. The older it gets the less energy efficient it becomes not only due to age but also due to debris settling on the bottom and lowering its efficiency.
Plus, newer water heaters including tankless models are released regularly which are cheaper to operate due to their increased energy efficiency.
Adjust your fridge settings
Refrigeration is the fourth highest energy use in a home since a fridge is plugged in 24/7. Ensure that there is enough clearance – about 1″ on either side and 1″ from the wall and top of the fridge – to allow for proper airflow. Keep your fridge away from heat sources like the stove or from a heater.
If you have a separate freezer, ask if you really need it? A full size freezer may cost $90 – $120 per year in electricity and perhaps more if it’s not full. Freezers and fridges tend to run more efficiently when they’re full.
Clothes dryer energy reduction
Clothes dryers are 5th on the list on energy-consuming appliances in the home. Other than ensuring you’re using an energy efficient dryer, ensure you aren’t over packing your dryer with clothes. While a washing machine can be filled to its limit, a dryer needs empty space for air flow. When you pack heavy, wet clothes into the dryer, there needs to be space to tumble them.
Also remember to clean the lint collector and ensure the exhaust hose leading outside the house is clear. Shortening the exhaust hose can also save energy: The shorter the hose the less energy is expended to push warm exhaust air outside the home.
Tip: If you have a small amount of clothes to dry quickly, throw in a dry towel for 10 – 15 minutes to help absorb the moisture. Under filling the dryer can also prevent proper drying as a small amount of clothing can be difficult to tumble.
Also, resist the urge to open the dryer to check on clothes or to add new, wet clothing halfway through the cycle. When you open the dryer door it lets heat out and lowers the efficiency.
Use low consumption bulbs
As mentioned above, lighting is the sixth most common use of electricity in a home. More energy efficient low wattage light bulbs have helped to reduce usage but if you’re at home for work or school, you will probably need more light for working or online calls. Look for LED light bulbs which have lower wattage than older style incandescent bulbs but emit the same light using less power.
Unplug your cords
When you leave your charger(s) plugged in, it continues to use a bit of power whether you still have the actual device (cellphone, tablet, computer) plugged in or not. When you’re finished charging, take the plug out of the wall. It’s a small thing but it adds up and doesn’t take much effort.
Standby is not the same as turning off
Putting a laptop or other device on standby still uses electricity. Turning it off shuts it down completely and stops the power usage. While a single device left on standby won’t use much power on its own, if your household has multiple devices left plugged in and on standby or otherwise not shut down, the costs add up. Remember that you also have appliances like your tv and microwave that remain plugged in for convenience and they use a small amount of electricity even when not in use. Might as well as save by doing the small things like shutting down devices rather than leaving them on standby.
Regarding the actual setting of a fridge, use the Eco setting if one exists. The FDA suggests the fridge itself be set no higher than 40° F (4° C) and the freezer at 0° F (-18° C). Any lower and you’re potentially wasting electricity.
Compare utility providers
If you live in a state with deregulated electricity and gas like New York, Ohio, Texas, Pennsylvania, Rhode Island and others, you have even more options to potentially lower your bill.
If you live in a regulated state, contact your supplier to understand if there are discounts or rebates available to you that you might not be aware of. These companies won’t contact you to let you know about the discounts. You need to inquire.
Check here for a list of states that have deregulated electricity, gas and in some cases both markets.
Washing machine and dishwasher usage
If you live in an area with time of use electricity, try to run these appliances during off peak hours. Either way, fill them up and don’t run them half empty. You might be surprised to learn how much more water and electricity you use hand washing dishes, too.
Vampire energy usage may be higher than you think
First off, what is vampire usage? As mentioned above, some appliances continue to use energy when plugged in even when they are not in use. Any device that has a memory feature like a clock on your stove or microwave, your televisions, and tv converters all use energy to maintain settings even when you aren’t using them. So does your modem.
About 31% of total energy consumption in the US is from “other” uses such as small electric devices, heating elements and outdoor lighting among others. So the “other” electricity uses in your home might be more significant than you think and it adds up over time. Where can you reduce your other consumption that might not come to mind immediately?
Expense reimbursement for remote workers
Should your employer reimburse you for expenses you incur by working from home when you would normally work in their facility?
A Dutch study from the National Institute for Family Finance Information showed that employers normally pay €2 ($2.40 USD) per employee per day for various workplace expenses that they would normally receive at no charge such as coffee and tea, toilet usage, Internet access and other utility costs. The Dutch government decided to pay each government employee a bonus of €363 ($429 USD) as a result although private employers were not required to follow suit.
In Germany in late 2020, the federal government announced up to €600 ($725 USD) in tax rebates for employees working from home due to COVID. All German workers already receive a €1,000 credit each year for job-related expenses like transport and work clothing so this new credit might be on top of what they already receive.
US states such as District of Columbia, California, Illinois, Iowa, Massachusetts, Montana and New York all have laws requiring employees to be reimbursed for necessary business expenses. With COVID introducing mandatory lockdowns and more companies offering permanent work from home options, it’s worth checking with your employer and state or local government to see what the law prescribes. You might be entitled to expense reimbursement that you’re not aware of.
Also familiarize yourself with the Fair Labor Standards Act (FLSA) as it determines among other things that an employer can’t force employees to cover work-related expenses if it would cause the employee’s wages to fall below the legal minimum wage at the time. You may also get some help lowering energy costs while working from home.
Summary
Lowering energy costs during quarantine or in general results in after tax savings that stays directly in your wallet. Want to figure out how much each of your appliances uses and learn how to lower your usage? Check out this handy Energy Consumption Calculator to plug in specifics about your major energy using appliances to calculate their kWh usage to see how much they cost you.
While the costs of energy in your home may not be the single largest expense in your home – a mortgage or rent, groceries and other costs could certainly be higher – reducing those energy charges just a bit saves you after tax money that you can invest or use elsewhere.
And while the focus of this article was on the topic of reducing electricity costs, you might be surprised at how much real money you can save by switching (if you already haven’t) to low flow, dual flush toilets. I changed three relatively water-friendly toilets to more water efficient ones and our water bill plummeted. If you’re working from home or otherwise spending more time in your house, your water usage will go up and toilet usage is at the top of the list for many people.
Click here to read my story about how we crushed our water bill by changing to toilets that flush with less water than the ones they replaced.
