Why Your Neighbor’s Electric Bill Is Half of Yours (It’s Not Solar)
Written by
Martin Dasko
Edited by
Jenna Klaverweiden
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According to Climate Power, household electric bills rose 13% nationwide in 2025. A survey by Third Way and Impact Research found that concerns about electricity prices were at an all-time high, with 83% of respondents reporting that their energy bills had increased in recent years. With 51% of respondents reporting that energy costs have increased significantly, environmental advocates believe that renewable energy alone can help bring prices down.
For those who have noticed that their neighbor’s energy bill is higher than theirs, there are still practical tips that you can apply to save money. Here are some reasons your neighbor’s electric bill could be lower than yours and what you can do to save money on your next bill.
You Don’t Have a Smart Thermostat
You may be paying more for your electric bill because you’re simply keeping your house warm or cool when you don’t have to.
“With a smart thermostat, it’s easy to preprogram the heat for times when people aren’t home,” said Sequoya Cross, the vice president of energy storage at Briggs & Stratton Energy Solutions. “For example, when parents are at work, and children are in school, the home doesn’t have to be kept as warm in the winter. In the evenings, when the household is in bed, the temperature can once again be adjusted to save money.”
The Environmental Protection Agency estimated that homeowners can save an average of 8% annually, or $50, on their utility bills by using a smart thermostat. You can also check with your local utility provider to see if it offers incentives or rebates for installing a smart thermostat.
You Don’t Know Where Your Energy Goes
Cross noted that many homeowners don’t know where their energy goes. An easy way for homeowners to lower their utility bills is to know which appliances use the most energy.
Cross advised that you buy a power consumption meter, which costs $25 or less. You should plug every appliance into the meter to see how much power it draws. Based on the numbers, you’ll know which items to unplug when they’re not in use. You could also determine what devices may need to be replaced or thrown out because of the impact they have on your energy bill.
You Haven’t Done an Energy Audit
Christine Ciavardini, a client relationship manager with MD Energy Advisors, advised that you take the opportunity to get a free home energy audit. She noted that these are available to homeowners or you can ask your landlord to contact the utility company.
By reviewing your entire house to pinpoint areas where the home is losing energy, these audits can identify issues that may reduce your bill by 10% to 20%. There could be a window that needs to be sealed or an appliance that’s due for an upgrade that you didn’t even consider.
You Haven’t Eliminated Vampire Energy
“Eliminate vampire energy draws, which are electrical devices that draw power even when they are turned off,” Cross said. “Take a walk around your home, and you’ll quickly identify items like your laptop, printer, coffee maker, phone chargers and other items that can easily be unplugged.”
You may have many devices, like a TV or video game console, that use energy even when turned off because they’re still plugged in. As a general rule, you’ll want to unplug appliances like toasters, coffee makers and whatever else you have when they’re not being used.
You Don’t Use Energy When It’s Cheap
Since utility companies charge more during periods of higher energy demand, peak-hour charges are like surge pricing. This means you’ll pay more for energy consumption during certain periods.
“Off-peak hours are typically run from the late evening to the early morning, so that’s the best time to run the dishwasher, do laundry, and meal prep items for the coming days,” Cross explained. You can lower your next energy bill by simply changing the time that you perform certain household chores.
Cross recommended reviewing your utility bill and keeping an eye out for terms like peak hours or time-of-use rates (TOU). TOU means your utility charges more for electricity use during peak hours. You could be spending more money on your electric bill than your neighbor because you’re doing all of your household chores at the same time instead of waiting until later.
You’re Not Optimizing Your Home
The experts agreed that you can lower your electric bill by optimizing a few things around your house to help lower energy consumption.
Here are a few quick ways to optimize your home to save on energy costs:
- Open the curtains during the day when there’s sunlight and then close them when the sun goes down to capture natural heat in your bigger rooms.
- When you turn the oven off, leave the door slightly ajar to keep the kitchen warm for a while.
- Ciavardini recommended keeping furnace filters clean and changing them regularly, as this will affect your furnace’s efficiency and energy use.
- Set your hot water heater to 120 degrees instead of 140 degrees.
- Seal windows and doors to prevent cold drafts that let hot air escape your home. Not only are you paying more to heat your home, but you’re also causing your furnace to run more, which puts more wear and tear on it and may shorten its life span.
You want to review this list to identify minor mistakes that are raising your energy costs. The good news is that you could see significant results on your next electric bill if you start to implement some of these changes.
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