How to Reduce Electricity Consumption at Home

Almost every "energy saving" listicle on the internet gives you the same advice in roughly the same order. We've kept the format because it's useful — but we've ranked the items by what the data actually shows, and added price tags so you can pick the changes that fit your budget.

The single most useful starting point is your last 12 months of electricity bills. Plot the kWh per day across the year. The seasonal shape tells you whether your home's biggest cost is heating, cooling, or baseload (refrigeration, hot water, standby). That's where to focus.

Free changes (start here)

1. Adjust your thermostat by 1°C

Heat to 1°C lower in winter, cool to 1°C higher in summer. Average saving: 8–10% on heating/cooling cost. Probably worth $80–$180 a year.

2. Use cold water for laundry

Modern detergents work well in cold water. Heating water for washing is one of the biggest hidden electricity costs. Saving: $40–$90 a year.

3. Hang clothes to dry

Tumble dryers are the single most expensive household appliance per use. Even half the loads on the line saves $50–$120 a year.

4. Unplug what you're not using

Phone chargers in the wall, computers in sleep, soundbars and game consoles — they idle at 1–10 watts each. Hunt down the worst standby loads with a $20 plug meter.

Under $200 changes

5. Switch every remaining bulb to LED

Halogen and incandescent bulbs are 5–8× less efficient than LED. If you still have any, replacing them is the single best dollar-for-dollar saving. Payback in months.

6. Add a smart thermostat

Already covered in our home automation article. Realistic saving: 8–15% on heating/cooling.

7. Standby power-saving boards for AV gear

One smart board behind the TV switches off everything when the TV turns off. Saves 30–80 watts of permanent draw in many homes.

8. Heavy curtains and seals

Drafty windows leak conditioned air. Heavy curtains, weather stripping and door snakes are the simplest improvements you can make to your heating/cooling efficiency.

Under $2,000 changes

9. Switch to a heat pump hot water unit

A heat pump uses 60–70% less energy than a standard electric hot water cylinder. Capital cost is higher; payback typically 4–7 years, faster on time-of-use tariffs.

10. Heat pump (reverse cycle) for heating

If you still use bar heaters or oil-filled radiators, swapping to a split-system heat pump cuts heating energy by 60–75%. The newer units are dramatically more efficient than 10-year-old equivalents.

11. Insulation top-up

Most pre-2010 homes are under-insulated. Topping up ceiling insulation is one of the highest ROI changes you can make to a building.

12. Shift loads to off-peak with smart scheduling

Pool pumps, hot water, EV charging, dishwasher and dryer — schedule them between 12am and 6am if you're on a time-of-use tariff. Same kWh, half the cost.

Major upgrades

13. Solar PV

For most homes with a north-facing roof, solar pays back in 4–8 years and runs for 25+. Bigger systems are usually better value per watt. See our EV charger article for how this combines with home charging.

14. Home battery

Adding a battery to solar shifts payback to 8–14 years today, faster as battery prices fall. Worth doing if you value backup during outages or live in an area with high evening tariffs.

"Most homes can drop 20–30 percent without a single capital purchase. People skip the boring habits and jump to solar. Do the habits first." — A licensed electrician we work with.

FAQ