Winter Heating Bills Are Breaking Records. Here’s How to Bring Yours Down

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Winter Heating Bills Are Breaking Records. Here's How to Bring Yours Down By: Liliana Hall Liliana Hall Reporter | Joined March 2025 Liliana Hall joined Money in 2025. She is an Austin-based reporter for Money, where she covers a range of topics, including financial news, policy, banking, investing, passive income, financial planning and student loan debt. Has also written: Nervous About Jobs and the Economy? You're Not Alone Will the Fed Cut Rates Again in December? It's Complicated Some Social Security Recipients Will Get Paid Twice This Month You Can Still Grab a Free Thanksgiving Turkey at These Grocery Stores Millennials Are Finally Joining the Ranks of 401(k) Millionaires See full bio Editor: Katherine Peach Katherine Peach Associate Editor | Joined January 2025 Katherine Peach is an associate editor with a focus on news and email at Money. Her writing and editing work has been featured in Investing Daily, Clever, Investor Junkie, The Palm Beach Letter, Truth & Plenty, Independence Monthly, NICHE, AmericanStyle, AntiqueWeek, Millennial Money, Money Done Right, TheStreet, Sure Dividend and many others. Has also written: Debit Card Fraud Is on the Rise. Here's What I Did When It Happened to Me New Bill Aims to 'Actually' End Taxes on Social Security Inflation's Silver Lining: The Social Security COLA Estimate for 2026 Is Up Social Security Recipients Are on Track for a 2.5% Raise Next Year Why Some Social Security Recipients Won't Get Payments in June See full bio Published: Dec 19, 2025 8:30 a.m. EST 6 min read Money; Getty Images Winter heating bills are expected to rise sharply this season, with costs projected to jump 9.2% compared to last year. New estimates from the National Energy Assistance Directors Association, or NEADA, show the average U.S. household will spend $995 on heating this winter — $84 more than last year. Homes that rely on electric heating are likely to see the biggest jump, with costs up 12.2%, while households using natural gas can expect an 8.4% increase. Those using heating oil or propane should see little change from last year. “These increases may not sound dramatic to higher-income households, but for families already struggling, they are devastating,” Mark Wolfe, executive director of NEADA, said in the report. “Millions of households are being pushed deeper into utility debt and closer to shutoffs simply because they cannot afford to keep their homes warm.” Ads by Money. We may be compensated if you click this ad.AdCompanyDescriptionGet QuoteMORELESSBy using our website, you agree that you have read Money’s Terms of Use and Privacy Notice and consent to both the processing of your personal information and the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. Electricity costs are hitting new highs, reaching the highest in a decade after adjusting for inflation. Since the start of the year, the average monthly electric bill has jumped nearly 10%, growing faster than wages and overall inflation, according to the NEADA. A separate analysis from Climate Power found U.S. electric bills have risen roughly 13% in 2025, reflecting broader trends in energy supply and demand. Since 2021, the average cost of electricity per kilowatt-hour has risen by 27.9%, while the average monthly bill is up nearly 30%, according to the NEADA. NEADA points to several factors driving the increases, including higher grid financing costs, a growing reliance on natural gas, surging demand from data centers, aging infrastructure and regional capacity shortfalls. Rising costs are likely to hit households that rely on government assistance the hardest. Funding for the Low-Income Home Energy Assistance Program, or LIHEAP — a federally funded program that helps cover immediate home energy needs — has fallen to $4.1 billion this year, down from $6.1 billion two years ago. Roughly 6.7 million households are currently enrolled in the program, meaning even modest increases in heating costs could strain already tight budgets and force difficult trade-offs between paying utility bills and covering other essentials. Tips to save on winter energy costs For households facing higher energy bills this winter, experts say small, consistent changes at home can help blunt the impact. "The quickest way to cut winter heating costs is to stop paying for heat you don’t get to keep — which means starting with insulation and air sealing before anything else," says Paul Hines, vice president of power systems at EnergyHub. "Drafty doors, leaky windows and poor insulation force heating systems to run longer than necessary, driving up bills. Even simple sealing fixes can make a noticeable difference." Another effective step is adjusting your thermostat. "Being smart with your thermostat is one of the most effective ways to reduce your energy usage," says Kate Colarulli, chief strategy officer at CleanChoice Energy. During the winter months, keeping indoor temperatures between 60 and 67 degrees Fahrenheit at night and around 68 degrees during the day can help keep heating bills down. Colarulli also highlights the value of a smart thermostat, which can automatically lower temperatures when you're away or asleep. According to data from Energy Star, households that use a programmable or smart thermostat can save up to $180 a year in energy costs. Using cold water for laundry can further cut costs. Heating water accounts for about 90% of the energy used in washing machines, and switching to cold water could save up to $0.80 per load (or about $160 a year if you wash up to four loads a week). Matt Plouffe, an energy consultant at Efficiency Vermont, advises being strategic with space heaters. Electric space heaters are among the most expensive ways to heat a home, so he suggests using blankets or layering clothes whenever possible. If a plug-in heater is necessary, focus on heating the smallest room safely and make sure furniture, carpets and drapes don’t block airflow. Finally, Hines says that many households miss out on savings simply by overlooking state and local utility incentives designed to lower energy costs: "Rebates for energy audits, weatherization and efficient heating systems like heat pumps can significantly reduce costs and make efficiency upgrades far more affordable." Resources such as Rewiring America can help both homeowners and renters identify federal, state and utility programs they may qualify for based on where they live. To see a real difference, experts recommend focusing on energy-conscious habits you can realistically maintain. Air-drying clothes, using appliances during off-peak hours and keeping thermostat settings consistent throughout the season can help households stay comfortable while limiting the impact of rising heating costs. Ads by Money. We may be compensated if you click this ad.AdDon't overpay for Car Insurance. Compare rates today!Save up to $793 a yearGet Started More from Money: Your Heating Bill Will Skyrocket This Winter. Here's What to Do About It 3 Ways Smart Home Devices Can Save You Money Gas vs. Electric Heat: Which Is Cheaper? SHOWHIDEAds by Money. We may be compensated if you click this ad.AdDon't overpay for Car Insurance. Compare rates with Progressive today!View Rates