How to save money on heating costs this winter

The winter months are not only colder than usual, but they’re hitting Americans’ wallets hard. With temperatures dropping and energy prices rising, homeowners are seeing significant increases in heating costs.

According to the National Energy Assistance Directors’ Association (NEADA), heating costs for U.S. homes are expected to rise by 9.2% on average this season. Households relying on electricity could see an increase of up to 12.2%, while those using natural gas may face an 8.4% hike.

While we can’t control the weather or energy market fluctuations, we can take steps to reduce heating bills without sacrificing comfort.

What you’ll learn:

• Why heating costs are rising
• Quick fixes to lower your bill today
• Benefits of investing in long-term heating solutions

Why heating costs are rising

The major price surges are hitting homes that use electricity or natural gas for heating. While oil and propane users may see smaller increases, if any at all. Several factors are driving these higher costs:

• Rising energy demand from data centers, AI, and electric vehicles.
• Aging power grid and underinvestment in infrastructure.
• Extreme weather is increasing demand during the colder months.
• Global events disrupting energy supply chains and causing an increase in oil and gas prices.

Electricity users are especially affected due to increased demand and supply challenges, making energy efficiency more important than ever.

Quick fixes to lower your bill today

Looking for easy and immediate ways to save? Try these simple strategies:

• Lower your thermostat: Every degree you reduce can save you 1-3% off your heating bill.
• Use programmable settings: Adjust your temperature throughout the day for some savings. You can even lower the temperature when you are out of the house and raise it slightly when you are home.
• Dress in layers: Add some cozy socks, sweatshirts, and blankets to your winter wardrobe. By dressing in layers, you can stay warm without cranking up the heat.

Benefits of investing in long-term heating solutions

While decreasing the temperature on the thermostat and dressing more warmly will help offset heating costs, in the short-term, investing in energy efficiency will pay off long-term. Consider these upgrades:

• Add insulation: Attics are major heat-loss zones. By adding insulation to attics, walls, and crawl spaces, the Environmental Protection Agency estimates you can save an average of 15% on heating costs.
• Check your windows and doors: If your windows and doors are letting in a lot of cold air, you might have to make some repairs or look into upgrading. Drafty windows and doors can account for 20-25% of heating costs, according to the U.S. Department of Energy. Using caulking or weatherstripping can help seal gaps and cracks, but investing in a more energy-efficient model can deliver year-round savings.

While these long-term solutions are more costly, they will help you save more throughout the year and not just during the colder months. You can also open a Home Equity Line of Credit (HELOC) to help spread out the expense over time.