This Is How Much the Average American Is Paying for Heat This Year. How Do You Compare?

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Many Americans will spend more than $1,000 over the winter months to stay warm. Here are some tips on how to lower your heating bill. 

Winter weather is already in full swing where I live in the South, with temperatures regularly dipping below freezing overnight. My heating bill is higher than it usually is this time of the year, and some Americans may be experiencing the same thing.

Last year’s high energy costs chilled Americans’ personal finances as residential gas prices reached their highest in over a decade.

Thankfully, there might be some relief this year. The U.S. Energy Information Administration estimates heating costs will be lower this winter than last. But that doesn’t mean heating your home will be cheap.

Here’s the estimate for total winter heating costs for November 2023 through March 2024 and their change compared to the previous winter:

Natural gas heating total cost: $611 (down 20%)Electricity heating total cost: $1,072 (down 1%)Propane heating total cost: $1,328 (down 4%)Oil heating total cost: $1,722 (no change)

Of course, your heating bill will vary depending on what you set your thermostat to, the local energy costs where you live, the energy efficiency of your home, and many other factors.

While you can’t control the temperature outside, you can do a few things to lower your monthly heating bill.

1. Lower the temperature on your thermostat

Cost savings: 1% to 3% for every degree

Turning down the thermostat is the simplest and cheapest way to lower your monthly heating bill. Turning the heat down may not seem like it will save you much money, but you could save 1% to 3% on your heating bill for every degree you lower your thermostat.

One of the best times to do this is at night when you’re less likely to notice when the heat is coming on. Using a programmable thermostat to automatically lower the temperature at night or while you’re away can also help you reduce your energy usage.

2. Seal leaks and add insulation

Cost savings: Up to 15% on heating costs

Another easy and inexpensive fix for high heating bills is to seal your home and add additional insulation. The Environmental Protection Agency (EPA) estimates that doing these two things could save you up to 15% on your heating bill and save you on your cooling costs in the summer.

Sealing up your home can involve covering any area where air leaks, including around doors, windows, and pipes. According to the EPA, the best places to add additional insulation are attics, floors over crawl spaces, and basements.

3. Replace inefficient older appliances

Cost savings: Up to 30% on energy bill

Replacing older appliances, like a heat pump or gas furnace, can be rough on your credit card bill, but the long-term cost-savings of lowering your energy bill by up to 30% will help offset the cost. The home repair website Angi says the cost to replace a mid-range gas furnace is between $1,000 to $3,500.

Even if you can’t replace your furnace or heat pump, you can still make your existing system work more efficiently by servicing it regularly and replacing your air filters every three months.

Sometimes, making minor changes to help with heating costs may not be enough to lower your bill. If that’s the case, some government programs may be able to help, including the Low Income Home Energy Assistance Program (LIHEAP) and the Weatherization Assistance Program (WAP). You can find out more information about both programs on the USA.gov website.

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