20 Tips on How to Reduce Electric Bills in India at Home (2024)
As the third-largest energy consumer globally, India faces increasing electricity demands. According to the International Trade Administration report, peak consumption has risen by 3.4% in 2023 compared to the previous year, reaching a record 223 gigawatts (GW). The cost of electricity has also been steadily rising in recent years. It is now more important than ever to find ways how to reduce your electric bill. Conserving energy not only saves you money but also has a significant environmental impact.
With electricity prices and utility charges rising to Rs. 8 – Rs. 10 per unit across India, finding ways how to save electricity at home can be challenging. As shown below, the average cost of state electricity supply in India from the financial year 2010 to 2024 has been constantly rising.
Average Electricity Cost in India per kilowatt hour (source: Statista Report)
Here is a video you can watch to know how to save electricity bill at home:
Video Source: Home Clevr
Tip 1: Reduce Energy Bills by Upgrading to Energy-Efficient Appliances
The Bureau of Energy Efficiency (BEE) gives star ratings on a scale from 1 to 5 for appliances to indicate their energy efficiency. To reduce your electricity bills, you need to replace your non-star-rated or low-star rated appliances with high-star rated ones.
Did you know? You can reduce Rs. 850 on your energy bills every year by replacing a non-star rate fan with even a 1-star rated fan (as per a report in ToI).
However, we will recommend that you buy a fan with a 5-star rating. The initial cost may be higher, but the long-term savings can be significant.
Here is another example: replacing an old un-starred refrigerator with a new BEE 5-star model could save your electricity consumption around 620-803 units per year. This means you can save an average of Rs. 3,000 to Rs 4,000 annually.
Tip 2: Implement Lighting Solutions to Reduce Energy Usage
According to the U.S. Department of Energy, LED bulbs use about 90% less energy and last 25 times longer than traditional incandescent bulbs. Switching just frequently used light bulbs to LEDs can save electricity at home. LEDs produce minimal heat, less than 5% of the consumed electricity goes into heat generation. On the other hand, CFLs emit approximately 80% of their energy as heat and last 5 times less.
Tip 3: Optimise Heating and Cooling Systems and Lower Energy Bills
Programmable thermostats can help you cut down your electricity bill by up to 10% on your heating and cooling costs. Simply lowering your thermostat by one degree in the winter and raising it by one degree in the summer can make a big difference.
Tip 4: Using Renewable Energy Sources to Lower Light Bill
One of the best tips on how to reduce power bills is adopting renewable energy sources like solar power. Solar panel installation throughout India is becoming increasingly popular.
A 1 kW solar system can generate around 4-5 units of electricity each day thus generating 120-150 units of electricity per month. As a result, you can save Rs. 960-1200 (taking the average electricity tariff as Rs. 8) each month on electricity units imported from the grid leading to a reduced electricity bill per month.
By installing a 3 kW solar system, you can reduce almost 360 to 450 units of electric bill per month.
If you are interested in adopting solar energy for your home, business or factory, you can contact us to get solar installation quotations.
While the initial investment in solar panels can be substantial, its payback period can be as low as 4-5 years. That means, whatever amount you generate after that period, will be your profit.
The Government of India’s PM Surya Ghar Muft Bijli Yojana scheme offers financial incentives for subsidised rooftop solar panel installations, accelerating the pace of solar adoption. You can get a subsidy of up to Rs. 78,000 under this scheme.
Image Source: MOSPI
India currently has an installed solar capacity of 84.27 GW as of May 2024, while the state-wise potential of 2109.654 GW shows enough room for improvement.
Tip 5: Lower Your Electric Bill by Sealing and Insulating Your Home
Sealing air leaks around windows and doors can save your electricity consumption on heating and cooling, thereby you can lower electricity bills.
Image Source: EnergyStar
Adding insulation to your attic, walls and basement will also help maintain a consistent temperature in your home. Weather stripping around doors and windows is another effective way to prevent drafts. As a result, your room heating and cooling system will consume less energy.
Tip 6: Save on Electricity Bills by Using Double Pane Low-E Windows
When you install double-pane windows, which have two glass panes with a space in between, you can reduce heat loss by up to 50%. Double pane windows come with 2 glass with an air gap in between to reduce the transfer of heat.
If you use low-emissivity (low-E) glass in these windows, it further reduces energy loss. Low-E glasses prevent ultraviolet and infrared light to a large extent.
You can also use window treatments like blinds, shades or reflective films to control how much heat gets into or out of your home. As a result you can cut down the electricity consumption from ACs and room heating systems.
Tip 7: Lower Energy Bills with Efficient Water Heating
Did you know that by lowering your water heater temperature from 60°C to 49°C, you can save 4-22% on your energy bill each year? If your home uses 150 litres of hot water daily, consider using a tankless water heater, which can be 24-34% more efficient than traditional water heaters (source: report from US Department of Energy). Additionally, insulating your water heater and pipes can further reduce heat loss and save electric energy. These are little adjustments on water heating facility that will reduce your electric bill.
Tip 8: Save Electricity by Properly Maintaining Appliances
Regularly cleaning and servicing your appliances is necessary to retain their efficiency. Replacing filters in Heating, Ventilation and Air Conditioning (HVAC) systems and refrigerators as needed can also help them run more efficiently. Ensuring proper ventilation around appliances can improve their energy efficiency and reduce electricity consumption.
Tip 9: Reduce Energy Usage with Efficient Refrigeration Practices
Setting your refrigerator to maintain a temperature between approximately 2 to 3 degrees Celsius and your freezer between -18 to -15 degree Celsius ensures efficient operation. Find 9 ways to be more efficient with your fridge and save electricity at home.
Moreover, it is better if your room temperature is above 30 degrees Celsius. It may not be your hand to control the weather but you can try to avoid closing the door of the refrigerator too often and for long periods. This will help you save your electric bill every month.
Watch the video below to know more regarding the use of refrigerator in energy efficient way:
Video Source: BM InfoGuide
Tip 10: Utilise Smart Home Technology to Save Energy
Using home automation systems can give you better control over how much energy you use, leading to significant electricity savings. For example, smart thermostats can learn your heating and cooling preferences and automatically adjust temperatures. You can also use smart plugs to set when your appliances turn on and off, which can help you save money on your electricity bill.
Using app-controlled devices to manage appliance usage can provide greater control over your energy consumption. They offer features such as remote control, voice control and scheduling to ensure appliances are off when not needed.
Tip 11: Reduce Energy Usage by Landscaping
Effective landscaping can significantly cut down on energy usage. Planting trees strategically around your home can provide natural shade. This reduces the need for air conditioning, cutting your electricity expenses by up to 35% [Source: Preen]. Installing reflective roofing materials like concrete tiles can reflect sunlight and heat away from your home, lowering your costs for cooling rooms.
Tip 12: Save on Electric Bills by Optimising Your Laundry Practices
To maximise energy efficiency, always wash full loads of laundry, meaning the drum is filled to its recommended capacity. Additionally, drying clothes on a clothesline or drying rack instead of using a dryer can significantly cut down on energy usage. Using high-efficiency washing machines and dryers can also reduce electric consumption.
Tip 13: Save Energy with Efficient Cooking Practices
Microwave ovens and toasters use significantly less energy. For example, a microwave uses about 60% less energy than a conventional electric oven [Source: Cnet]. Cooking multiple dishes at once reduces oven usage, and keeping lids on pots can retain heat and reduce cooking time. This way, you can cut down electricity consumption at home for cooking.
Tip 14: Implement Passive Solar Heating and Cooling
This tip to reduce electric bills is mainly for cold regions in India like Darjeeling, Ladakh and Jammu & Kashmir. Designing your home to maximise natural sunlight during winter can provide free heating. Using thermal mass materials, such as concrete or brick, can absorb and release heat, helping to maintain a comfortable temperature.
Tip 15: Reduce Standby Power Consumption
Even when turned on but not in use, electronics still use energy when they are plugged in. Unplugging chargers and electronics when they are not in use can also help eliminate passive energy consumption.
This standby power consumption or phantom load can add up over time, accounting for the total electricity consumed. Thus, turning off devices that are not in use to cut off standby power can reduce energy usage.
Tip 16: Save Electricity at Home by Using Ceiling Fans Efficiently
Ceiling fans can help circulate air and create a wind chill effect. This makes you feel cooler and allows you to raise the thermostat setting by up to 2 degrees Celsius in the summer.
Setting fans to rotate counterclockwise in summer can create a cooling breeze while setting them to rotate clockwise in winter can distribute warm air throughout the room. Turning off fans when leaving a room can save additional electricity.
Tip 17: Save on Electric Bills with Energy-Efficient Office Equipment
Laptops typically consume significantly less energy than desktop computers, using up to 80% less electricity [source: Econnex]. A laptop typically consumes between 15 to 60 Watts, whereas a desktop consumes around 60 to 300 watts.
Further, enabling power-saving modes on office equipment and ensuring monitors and printers are turned off when not in use can further reduce energy consumption.
Tip 18: Lower Electricity Consumption on Television
Optimising your home entertainment systems can lead to significant energy savings. Start by using energy-efficient devices like LED TVs, which consume less power than older models. Turn off devices when not in use. Consider using smart power strips that automatically cut off power to devices that are not in use.
Adjust the brightness settings on your TV to a lower level, which can also reduce energy consumption. Streaming devices can be set to energy-saving modes, and using a soundbar instead of a full home theatre system can also save electricity bills.
Tip 19: Save on Energy Bills with Efficient Outdoor Lighting
Outdoor lighting can significantly impact energy consumption. Opting for solar-powered LED streetlights can eliminate electricity costs entirely. A solar-powered LED streetlight produces the energy required for it during the day, stores the energy and uses it at night. This will result in substantial savings on electricity bills.
Moreover, you can install motion sensor lights for security. These lights are lit only when needed, potentially saving up to 90% of lighting energy.
Tip 20: Participate in Demand Response Programs
Global Electricity Price Trends
Household Electricity Prices as of 2023 in U.S. dollars per kilowatt-hour (Image Source: Statista Report)
As shown above, electricity prices around the world have risen due to geopolitical factors and rising energy costs with Europe seeing the highest prices. The average global price of electricity rose by 18% in 2022 compared to the previous year. Moreover, IEA in its Global Electricity Report states that electricity demand is projected to grow by 3.4% yearly through 2026. The combined effect of these factors is putting a strain on household budgets and squeezing profit margins for businesses around the world.
The good news is that you can take control of your electricity usage and mitigate the impact of rising prices. The tips to reduce electicity bill outlined above can help you significantly in keeping the utility bill minimum. Understanding how to reduce power bills not only helps you save money but also supports environmental sustainability. Another way, you can address both these concerns is by solar installation in home.
If you want to go solar and find an installer for that, we have here with the solution. On our platform, you can request solar installation quotations free of cost. You will get quotations from plenty of solar installers. You just have to compare their quotes and select the best.
You can decrease your electricity usage and cut electric bills, by following these tips on how to reduce electric bill. Whether it is by upgrading to energy-efficient appliances, adopting energy-saving habits or making use of smart home technology. There are numerous ways to conserve energy and save money on electric bills. Each small adjustment can have a significant impact in the long run.
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