5 Ways to Slash Your Home’s Heating Bills

Cut your energy costs by 20 percent or more this winter

Kerri Anne Renzulli,

Updated January 14, 2026

AARP

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Published December 18, 2024

/ Updated January 14, 2026

home thermostat with a shredded dollar bill running through it

Matt Chase

Home heating and cooling costs are surging. From March 2022 to June 2025, the average monthly energy bill rose from $196 to $265, a 35 percent spike, according to a study by the Century Foundation, a think tank dedicated to addressing inequality. Moreover, the average U.S. home will spend nearly $1,000 on heating this winter, a 9.2 percent uptick from last year, according to a report from the National Energy Assistance Directors Association, which represents state governments in securing federal funding.

The bright spot: Keeping your home’s energy costs manageable when the temperature drops doesn’t require wearing three sweaters or installing a new heating system. Making changes to your home and daily habits at little or no cost could improve its energy efficiency and slash your heating bills by 20 percent or more.

Adjust your thermostat

Setting your thermostat a few degrees cooler than you usually do can lead to significant savings. Knocking the temperature back by 7 to 10 degrees for eight hours per day can save you up to 10 percent annually on heating costs, according to the U.S. Department of Energy.

“The closer you match the thermostat to the temperature outside your home, the easier it will be on the heating unit and your wallet,” says Caroline Fountain, a spokesperson for Duke Energy, a Charlotte, North Carolina-based electric and natural gas utility company with customers in seven mostly Southern states.

But don’t get too carried away. Drastically lowering the temperature or turning the heating off can force your home’s heating system to work harder — and could even cause pipes to freeze and burst. Kelly Ziegler, department manager of New York-area utility Con Edison’s mass market energy efficiency programs, recommends setting your thermostat to around 68 degrees during the day and lowering the temperature when you’re sleeping or out of the house for more than six hours.

You can automate this process by installing a programmable or smart thermostat, says Todd Berreman, director of energy efficiency programs at Houston-based CenterPoint Energy, which provides electricity and natural gas in Texas and five other states. These devices allow you to set temperature controls and schedule when your heating turns on, so you can sit back and forget about adjusting it manually.

Some energy companies offer rebates to customers who install smart thermostats. Others provide bill credits or compensation to customers who permit their smart thermostats to be temporarily adjusted by the utility company during peak demand periods. Duke Energy, for instance, pays customers $150 when they enroll in its EnergyWise Home program and $50 every year after.

Pay attention to your water heater temperature as well. It accounts for almost 20 percent of your home’s energy use. Lowering the setting to 120 degrees or less can help reduce your heating bill.

Stop the leaks

Preventing hot air from escaping your home through gaps and cracks can greatly reduce your heating costs. Sealing air leaks with caulk and weatherstripping can cut your energy bill between 10 and 20 percent, and the materials typically cost less than $30.

“Warm air will always find ways out of your home,” says Berreman. “Adding caulking, door sweeps, anything that seals gaps can help.”

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To identify your home’s air leaks, the Department of Energy recommends focusing on exterior areas where different building materials meet, such as corners and outdoor faucets. Inside, cracks and gaps commonly occur around doors and window frames, mail slots, foundation seals, attic hatches, electrical outlets, baseboards, air conditioners, dryer vents, and cable, TV and phone lines.

Your fireplace can be a big source of heat loss, too. “A wood-burning fireplace is kind of like an open window,” says Berreman. “Your heat goes right up the chimney and out the house if the damper isn’t closed and operating properly.”

Keep the damper closed when a fire isn’t burning and make sure the seal is snug. When a fire is lit, consider lowering the thermostat setting to between 50 and 55 degrees to save money, the Department of Energy suggests.

Look after your equipment

Carefully maintaining your heating system can prolong its life and help ensure its efficiency, reducing heating costs by 10 percent or more.

“We recommend doing regular maintenance on your heating equipment every year,” says Berreman. “A clean burner, fan motor and heat exchanger will make the furnace run more efficiently, saving you money over a long winter.”

Servicing and preventive checkups may require the expertise of a qualified HVAC technician, but most people can at least make sure the area around the heating system is free of debris such as weeds and leaves, remove rusty water that can accumulate in your boiler and replace the air filters, which should be changed regularly to ensure efficiency.

“A dirty filter clogs a heating system and makes it work much harder, which uses more energy and can lead to higher costs,” says Fountain. To help you remember to replace air filters according to the manufacturer's maintenance schedule, Berreman recommends setting a calendar notification on your phone.

If you need a new heating system, consider an Energy Star-certified one that meets strict efficiency guidelines set by the U.S. Environmental Protection Agency and can reduce energy costs. For example, an Energy Star-certified furnace uses $30 to $80 less energy per year than other models.

Get a home energy audit

Analyzing your home and energy use can turn up ways to improve your property’s efficiency and comfort. While you can perform a home energy audit yourself, you'll likely get a more thorough examination by hiring a professional who has specialist equipment, such as infrared cameras. An assessor should do a room-by-room examination and review your past year’s energy bills to create a report with personalized recommendations that could slash your energy costs between 5 and 30 percent if implemented.

However, a professional energy audit can be pricey, typically running between $200 and $700, according to Angi, a contractor-referral website.

Check if your utility company offers free or discounted energy assessments. For instance, PSEG, which operates in New Jersey and Long Island, offers customers free professional energy audits, while PPL Electric Utilities in Pennsylvania provides rebates worth up to $350 for customers who get an audit from one of its partner contractors.

If you can’t get a free or significantly discounted audit, Ziegler recommends skipping it. The money you’d spend on a full-price audit "is better spent on doing an energy-efficient upgrade to your home,” she says. “There is a fairly small list of things people can do to improve their home’s efficiency and it doesn't vary a lot house by house. Instead of spending $500 on an audit, you could hire a professional to check your insulation and improve it.”

Prep your home for winter

Small, seasonal lifestyle changes can help keep your home nice and warm and your heating bills down.

Fountain recommends running ceiling fans clockwise in winter to push warm air back down into the room, helping disperse heat. Most ceiling fans have a switch on the base or remote that allows you to reverse the motor.

Embrace the sun’s warming rays by opening the blinds, curtains or drapes over your windows, especially those on the south-facing side of your home. Covering the windows when the sun goes down can help insulate the home at night — drawing your drapes can prevent up to 10 percent of a warm room’s heat from escaping, according to the Department of Energy.

If closing drapes isn’t cutting it, consider investing in more efficient windows. Upgrading from single-pane to Energy Star-certified options can lower your heating bill by up to 13 percent, as heat loss through windows accounts for 25 to 30 percent of all heating energy use.

You may also want to upgrade your home’s insulation, says Berreman.

“I hear people say, ‘New windows will solve all my heating problems,’ but many homes lose a majority of heat through the attic or walls,” he says. “The most effective way to keep the house warm is proper air sealing of the attic, especially in older homes that usually don’t have adequate insulation.”

How to get help with your energy bills

If high winter heating costs are straining your budget, your local utility company might be able to help you cut your bills. Federal programs may provide assistance, too.

Utility company program

Your utility provider should be your first call if you’re struggling to pay your heating bills. Most utilities offer a one-time payment deadline extension or will work out a payment plan to split your bill into smaller increments over a set period.

Of course, paying those installments on top of your current charges can be tricky when you’re already financially stressed. Ask if the company can connect you with community action programs, which can help you access federal, state or other aid to get back on track, says Berreman.

Some energy companies have funds set aside to help customers who’ve fallen behind on their bills. For instance, Duke Energy's Share the Light Fund works with community agencies to distribute aid to struggling customers.

Low-income households receiving benefits from certain government assistance programs, like Supplemental Nutrition Assistance Program (SNAP) or Supplemental Security Income (SSI), may receive low-rate discounts from their heat provider. Some utility companies offer budget-billing programs that let you pay a set amount each month based on your usage history, making your energy bills predictable even when consumption fluctuates. If your usage spikes, though, your monthly payments could rise or you could get hit with a big bill at the end of the year.

Low Income Home Energy Assistance Program

LIHEAP, as it's known, is a federal program administered by state governments that helps low-income families afford their energy bills. While eligibility requirements and program details vary by state, benefits can be used to cover heating costs, prevent energy shutoffs, reconnect services, improve a home’s energy efficiency and repair or replace heating equipment.

To see if you qualify, use the LIHEAP Eligibility Tool or call the National Energy Assistance Referral hotline at 866-674-6327. The program operates on a first-come, first-served basis, but older people and medically homebound individuals typically get priority.

Weatherization Assistance Program

This program, called WAP, helps limited-income households lower their energy bills by improving their home’s energy efficiency. It provides funding to all 50 states and the District of Columbia to deliver weatherization services at no cost to participants.

To qualify, you must meet strict income limits, and your state may have additional eligibility requirements. Households with someone age 60 or older, children or a member with a disability are given priority. You can apply through your local WAP agency.

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Kerri Anne Renzulli has worked as a personal finance and careers reporter for Newsweek, CNBC, and Money. Her writing has appeared in the Wall Street Journal, USA Today, Fortune, Time, Mansion Global, Glamour, Business Insider and Architectural Digest.