Which Appliances Use the Most Electricity & How to Cut Costs

Electricity is essential in every home, but high energy bills can be frustrating. Many households in the United States struggle with rising electricity costs, often unaware of which appliances contribute the most to their monthly expenses.

From heating and cooling systems to everyday kitchen appliances, some devices consume more energy than others. Understanding which ones use the most power can help you take steps to reduce waste and save on your energy bill.

In this blog, we’ll explore the biggest energy-consuming appliances in your home and share practical tips to improve efficiency. Whether you’re looking to cut costs, reduce your environmental impact, or switch to more sustainable energy sources, this guide will help you make informed decisions.

Biggest Energy-Consuming Appliances

Some appliances use significantly more electricity than others, and knowing which ones are the biggest culprits can help you take steps to reduce your energy consumption. Below are the top energy-consuming appliances in most U.S. homes, along with tips on how to use them more efficiently.

1. Heating & Cooling (AC, Heaters, HVAC Systems)

Heating and cooling systems are the largest energy consumers in most households. According to the U.S. Energy Information Administration (EIA), heating and air conditioning account for about 50% of a home’s energy use. Extreme weather conditions make these appliances essential, but they also lead to higher electricity bills.

Why They Use So Much Energy:

Air conditioners and heaters work hard to maintain a comfortable indoor temperature, especially in extreme weather conditions.
Poor insulation and air leaks force HVAC systems to run longer, consuming more electricity.
Older systems tend to be less energy-efficient compared to modern, high-efficiency models.

How to Reduce Energy Waste:

Set your thermostat wisely – The U.S. Department of Energy recommends setting your thermostat to 68°F in winter and 78°F in summer to save energy.
Use ceiling fans – Fans help distribute air evenly, reducing the workload on your HVAC system.
Seal leaks and insulate – Proper insulation and sealing gaps around windows and doors can prevent energy loss.
Schedule HVAC maintenance – Cleaning air filters and servicing your system regularly can improve efficiency.
Upgrade to an energy-efficient system – If your HVAC system is over 10 years old, consider replacing it with an ENERGY STAR®-certified model.

Heating and cooling are necessary, but using them wisely can lead to significant savings on your electricity bill.

2. Water Heaters

Hot showers and warm water for daily chores come at a cost—water heaters are one of the biggest energy consumers in a home. They typically account for 14-18% of household energy use, making them second only to heating and cooling systems.

Why They Use So Much Energy:

Water heaters run frequently to maintain a set temperature, even when you’re not using hot water.
Traditional storage water heaters continuously heat water, leading to standby energy loss.
High-temperature settings increase electricity consumption.

Energy-Saving Hacks:

Lower the temperature – Setting your water heater to 120°F instead of the default 140°F can cut energy use without sacrificing comfort.
Use cold water for laundry – Many modern detergents work well in cold water, reducing the need for hot water.
Install a timer – A water heater timer can shut off heating during hours when hot water isn’t needed.
Insulate your water heater and pipes – Wrapping your tank and pipes in insulation helps retain heat and reduces energy loss.
Upgrade to an energy-efficient model – Tankless water heaters heat water on demand, reducing wasted energy. Heat pump water heaters are another green energy option that uses significantly less electricity.

Since hot water is a daily necessity, small changes in usage can lead to noticeable savings over time.

3. Refrigerators & Freezers

Refrigerators and freezers run 24/7, making them one of the highest energy-consuming appliances in a home. On average, they account for 10-15% of household electricity use. While newer models are more energy-efficient, older refrigerators can use up to 1,500 kWh per year, which adds up to a significant portion of your electricity bill.

Why They Use So Much Energy:

They must maintain a consistently low temperature, requiring continuous operation.
Older models are less energy-efficient compared to modern refrigerators.
Frequently opening the door lets cold air escape, making the appliance work harder.

How to Make Them More Efficient:

Upgrade to an ENERGY STAR® refrigerator – Newer models use up to 40% less energy than those made 15 years ago.
Keep the temperature settings optimal – Set your fridge to 35-38°F and your freezer to 0°F for maximum efficiency.
Keep doors closed – Avoid leaving the refrigerator door open for long periods to prevent temperature fluctuations.
Defrost when needed – Ice buildup makes the appliance work harder. Manual defrosting improves energy efficiency.
Clean the coils – Dust and dirt on the condenser coils reduce efficiency. Cleaning them every six months can improve performance.
Don’t overload or underload – A full fridge retains cold better, but overpacking restricts airflow, making the compressor work harder.

Since refrigerators are essential, maintaining them properly ensures they run efficiently without wasting sustainable energy.

4. Washing Machines & Dryers

Laundry appliances are another major energy drain, especially when using hot water and high-heat drying cycles. Together, washing machines and dryers account for about 5-10% of household electricity use.

Why They Use So Much Energy:

Hot-water washes consume significantly more electricity than cold-water cycles.
Dryers use a large amount of energy to generate and maintain heat.
Inefficient loads (such as overloading or running small loads) increase power consumption.

Best Energy-Saving Practices:

Wash with cold water – Most clothes clean well in cold water, reducing the need for energy-intensive hot water washes.
Use high-efficiency detergent – These detergents work well in cold water and can help reduce re-washing.
Run full loads – Avoid washing small loads to maximize efficiency.
Air dry when possible – Hanging clothes instead of using the dryer saves energy.
Clean the lint filter – A clogged lint trap makes the dryer work harder, increasing energy use.
Use dryer balls – Wool dryer balls reduce drying time by improving airflow.
Upgrade to an energy-efficient model – ENERGY STAR® washers and dryers use 25-30% less energy than standard models.

Reducing laundry-related electricity consumption can make a noticeable impact on your monthly bill while also promoting a more sustainable way of using energy.

5. Ovens, Stoves & Microwaves

Cooking appliances contribute significantly to household electricity use, especially when used frequently. While they may not run all day like refrigerators, ovens, and stoves require high wattage and can quickly spike your bill if used inefficiently.

Why They Use So Much Energy:

Electric ovens and stoves require a lot of power to generate and maintain high temperatures.
Long cooking times increase electricity use.
Preheating and leaving the oven door open cause heat loss, making the appliance work harder.

Efficient Ways to Use Them:

Use the right-sized burner – Match pots and pans to the burner size to prevent heat loss.
Cook with lids on – Trapping heat inside reduces cooking time and energy use.
Opt for smaller appliances – Microwaves, toaster ovens, and slow cookers use significantly less energy than traditional ovens.
Batch cook meals – Cooking multiple dishes at once reduces the need for multiple cooking sessions.
Turn off the oven early – Residual heat can finish cooking your food, saving energy.
Consider an induction cooktop – Induction stoves use less energy than traditional electric stoves and heat food faster.

Switching to energy-efficient cooking methods can save on your energy bill while still allowing you to prepare delicious meals.

6. Dishwashers

Dishwashers provide convenience, but they also contribute to electricity usage, mainly due to their hot water and drying cycles. While they consume less water than hand-washing dishes, their energy use can add up, especially if run frequently.

Why They Use So Much Energy:

Heating water accounts for most of a dishwasher’s energy consumption.
Heated drying cycles use extra electricity to remove moisture from dishes.
Running half-full loads wastes both energy and water.

Smart Washing Tips:

Run full loads – Keep your dishwasher running efficiently by only running it when it’s full.
Use the energy-saving or eco mode – Many dishwashers have a setting that reduces water and electricity use.
Skip the heated dry cycle – Let dishes air dry instead. Simply opening the door after the wash cycle can save energy.
Scrape, don’t rinse – Modern dishwashers are designed to handle food debris, so rinsing dishes beforehand wastes water and energy.
Use cold water for pre-rinsing – If you must rinse, do it with cold water to avoid unnecessary energy use.
Upgrade to an ENERGY STAR® model – These dishwashers use up to 12% less energy than standard models.

A few small changes in how you use your dishwasher can lead to noticeable energy savings over time.

7. TVs, Computers & Gadgets

Electronics may not seem like major energy consumers, but when combined, they add up quickly—especially if they remain plugged in and on standby mode. Devices like televisions, gaming consoles, desktop computers, and streaming devices contribute to 5-10% of household electricity use.

Many electronics continue to draw power even when turned off, a phenomenon known as phantom load or standby power drain. A typical home can waste $100 or more per year on devices left plugged in but not actively in use.

Why They Use So Much Energy:

Standby power waste – Many devices continue drawing electricity even when turned off.
High screen brightness settings – TVs and monitors use more power when brightness is set to maximum.
Gaming consoles & streaming devices – Leaving them in idle mode instead of turning them off completely increases energy consumption.

Simple Tricks to Cut Power Use:

Unplug devices when not in use – Chargers, gaming consoles, and laptops still consume power even when idle.
Use smart power strips – These automatically cut power to devices that are not in use, reducing standby electricity consumption.
Enable energy-saving modes – Many TVs and computers have eco settings that lower energy use.
Reduce screen brightness – Lowering the brightness on your TV or computer can slightly reduce electricity use.
Turn off instead of standby – Shutting down computers and gaming consoles completely prevents unnecessary power drain.

By making these small changes, you can reduce energy waste while still enjoying your favorite gadgets.

8. Lighting

Lighting is an essential part of every home, but inefficient bulbs can add unnecessary costs to your electricity bill. Traditional incandescent bulbs consume far more energy than modern LED options, making lighting a simple yet impactful area to improve energy efficiency.

Incandescent vs. LED Bulbs:

Incandescent bulbs waste about 90% of their energy as heat, making them highly inefficient.
LED bulbs use 75% less energy and last 25 times longer than incandescent bulbs.
Compact fluorescent lamps (CFLs) offer some savings but are still less efficient than LEDs.

Smart Lighting Solutions:

Switch to LED bulbs – LEDs are the most energy-efficient lighting option available.
Use motion sensors & timers – These automatically turn off lights when they’re not needed.
Take advantage of natural light – Open curtains during the day to reduce the need for artificial lighting.
Opt for dimmable lights – Using dimmers lets you adjust brightness and conserve energy.
Install smart lighting systems – Smart bulbs and automated systems allow remote control, reducing unnecessary electricity use.

Why Should You Care About Energy Consumption?

The Hidden Costs of High Energy Use

High electricity consumption isn’t just about higher utility bills—it also has a broader financial and environmental impact. Every kilowatt-hour (kWh) used contributes to energy demand, which affects electricity costs, resource depletion, and carbon emissions.

The Financial Impact:

The average U.S. household uses about 886 kWh per month, leading to an annual electricity bill of over $1,500.
Electricity prices continue to rise due to demand, fuel costs, and infrastructure upgrades.
Phantom energy loss from appliances on standby mode can cost households $100-$200 per year.

The Environmental Impact:

High electricity consumption increases carbon emissions, contributing to climate change.
Many power plants still rely on fossil fuels, though the future of renewable energy is expanding.
Using sustainable energy sources like solar power, geothermal energy, and biomass energy can reduce dependence on fossil fuels.

How to Cut Electricity Costs

Reducing electricity consumption doesn’t mean sacrificing comfort—it’s about using energy more efficiently. By making a few strategic changes, you can save on your energy bill while also reducing your environmental impact.

1. Upgrade to Energy-Efficient Appliances

Look for ENERGY STAR®-rated appliances—they consume 10-50% less energy than standard models.
Replace old refrigerators, washing machines, and dishwashers with high-efficiency models.
Consider an induction cooktop, which heats food faster and wastes less energy than traditional electric stoves.

2. Use Smart Power Strips & Timers

Many appliances continue drawing power even when turned off. Smart power strips automatically cut power to idle devices.
Timers and motion sensors help manage lighting and electronics more efficiently.

3. Invest in Renewable Energy

Solar power is becoming more affordable, and homeowners can benefit from federal tax credits.
Geothermal energy is an excellent option for heating and cooling efficiently.
If installing solar panels isn’t an option, consider switching to a green energy plan from the best energy supplier in your area.

4. Adjust Daily Habits to Reduce Energy Waste

Set thermostats to 78°F in summer and 68°F in winter to balance comfort and efficiency.
Run dishwashers, washing machines, and dryers during off-peak hours to lower costs.
Take shorter showers to reduce water heater usage.
Use LED bulbs and maximize natural daylight.

Switching to a 3-month energy plan or monitoring electricity usage with smart meters can also help track consumption and optimize savings.

Making small, consistent changes can lead to long-term savings and a more energy-efficient home.

Conclusion

Understanding which appliances use the most electricity is the first step toward lowering your energy bills. Heating and cooling systems, water heaters, refrigerators, and laundry machines are some of the biggest energy consumers in a home, but even smaller appliances like ovens, dishwashers, and electronics contribute to overall electricity use.

At City Power and Gas, we’re committed to helping customers save on their energy bills while promoting sustainable energy sources. Making small changes today can lead to long-term savings and a greener future.