With winter in full swing, the rising costs of home heating are taking a toll on Americans’ utility bills. A recent report by HOP Energy gives insight into the mounting impact of these increasing expenses on households across the nation, along with the strategies Americans are taking to cut these costs.
Americans are Struggling to Pay Utility Bills
The cost of living has surged in recent years, and it has left no stone unturned, affecting utility bills as well. Over half of Americans say their utility bills were higher in 2023 compared to past years – of all utility bills, 69% say electric bills increased the most.
A staggering 48% of Americans express stress over their utility bills, and 1 in 5 face challenges paying them on time. This financial strain is evident, with 19% having been late on at least one utility bill in 2023.
The consequences of nonpayment are significant, as 12% of respondents have experienced a utility bill shut-off due to nonpayment at some point in their lives. However, 6% have utilized hardship funds for utility bills in the form of government assistance.
Regardless of financial stability, paying bills on a monthly basis is a challenge for some – 28% have forgotten to pay a utility bill on time at least once.
Estimated versus Actual Utility Bill Costs
Despite so many Americans being stressed about utility costs and a large number struggling to make monthly payments, it turns out Americans are typically accurate when estimating their utility expenses. The average monthly utility bill for gas, electric, and oil was only off by a small percentage with an average inaccuracy of less than $10 across all utilities, with oil having the largest difference between estimation (Americans underestimated by an average of $17) and gas having the smallest, with an average discrepancy of $1.
Younger generations are typically known for being progressive on things like mental health, sustainability, and modern dating, and more knowledgeable in areas such as technology. Unfortunately, they’re behind on utility knowledge: 56% of Gen Z underestimated their monthly utility bills.
Among the findings, mobile homeowners emerge as the most accurate, with 63% providing precise estimates. In contrast, single-family homeowners exhibit lower accuracy, with only 39% accurately estimating their utility costs. The report further highlights that townhome owners have the highest percentage of overestimation at 41%, while multi-family homeowners have the largest percentage of underestimation at 39%. These nuanced details shed light on the varying degrees of accuracy among different homeowner types.
Top 10 Ways Americans Are Cutting Utility Costs in 2024
In response to the growing concern over utility bills, 71% of Americans are actively seeking ways to cut costs in 2024.
The most popular strategies include adjusting thermostats to align with outside temperatures, unplugging unused items, and using energy-efficient lightbulbs. Two in five will aim to keep unused rooms closed to concentrate heat, 29% are winterizing their home, and 28% will be getting energy-efficient appliances like smart home technology.
4 Tips to Cut Utility Costs in 2024, According to Experts
To cut utility costs in 2024, HOP Energy recommends four key strategies. Firstly, utilize programmable thermostats to schedule temperature changes, optimizing heating system efficiency during periods of absence or sleep, leading to energy conservation and financial savings. Secondly, implement zone heating by focusing on specific areas of the home, achieved through zoned HVAC systems, space heaters, or fireplace inserts, to minimize overall energy consumption. Thirdly, prioritize proper insulation by insulating walls, attics, and floors, sealing gaps, and installing energy-efficient windows to minimize heat escape and reduce heating expenses. Lastly, adopt weatherization strategies, including sealing gaps, adding insulation, ensuring airtight ductwork, and upgrading doors and windows, to enhance overall energy efficiency.