7 Ways To Lower Your Utility Bills in Retirement in 2026
Written by
Brooke Barley
Edited by
Levi Leidy
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During the colder months, it can be tough to resist turning up the heater. However, if you’re on a fixed income as a retiree, this can get expensive very quickly.
There are strategies to use that can help bring down the cost of your bills without sacrificing your comfort too much. Here are the tips experts suggest.
Evaluate Your Thermal Envelope
Before you sign any agreements, Dean Mahmoud, CEO of EcoGen America, said you should evaluate the thermal envelope of your home.
“The thermal envelope is the degree to which heat or cool air escapes from the walls and windows of your home. Air sealing these areas can result in a reduction of 15% or greater in the amount of heating and cooling required for your home,” Mahmoud said.
Power Purchase Agreements
Mahmoud has worked to provide fixed utility cost pricing through power purchase agreements (PPAs). Mahmoud said PPAs reduce the volatility of payments for renewable energy and don’t cost anything upfront.
“For example, we assisted a retired couple in New Jersey who were able to purchase electricity from their solar panel array for 15% less than what they would have paid had they remained connected to the local utility company,” he said. “As a result of the PPA they saved $1,240 in the last year and were able to protect their budget from potentially significant increases in the price of electricity provided by the local utility company.”
Check For Time-of-Use Billing
Mahmoud suggested checking to see if your residence offers time-of-use billing so you can coordinate your home activities accordingly.
“If your utility provider offers time-of-use billing, shifting energy-intensive activities like doing laundry or washing dishes to off-peak hours can also reduce your monthly utility bill by approximately 8%. Shifting these activities does not require any additional expenditure. It simply changes the timing of your energy usage,” he said.
Think About Appliances That Offer Tax Credits
You might have an appliance that will give you a break when tax season comes around. Ian Gardner, the director of sales and business development at Sigma Tax Pro, said it’s important to check and see if you own any appliances that will give you a tax credit, or if some might be in your budget to purchase.
“Some people who are eligible for federal and state energy efficiency tax credits may not be aware that they exist,” Gardner said. “They may qualify for tax credits when they replace aging HVAC systems, install smart thermostats or increase their home’s insulation. In many cases, the amount of the tax credit will cover some of the costs associated with installing the new equipment, which will save the consumer money over time and require no lifestyle changes.”
Get a Smart Thermostat
This is a tip that requires very little effort. Purchasing a smart thermostat can help decrease your energy usage without you having to constantly change the settings.
“A smart thermostat will adjust the temperature settings in your home automatically while you are sleeping or away from home, and this will continue to generate additional savings,” said Steven David, the co-founder and CEO of EZ Movers and Storage.
Switch To LED Bulbs
A simple and easy switch you can make at home to save money is to simply switch out some of your lightbulbs.
“Upgrading to LED saves over $200 on your energy bill,” Gardner said. “Additionally, there are LED options available that have the same cozy, ambient lighting as incandescent bulbs.”
Install a High-Efficiency Shower Head
A luxurious shower is a nice indulgence once in a while, but doing it everyday will run up your utility bill.
“Skip the more advanced options and go for a more efficient shower head,” Gardner said. “It will use up to 75% less water while reducing your water bill.”
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