How to Save on Heating Costs This Winter: Warm Home, Lower Bill

Winter brings a unique set of challenges, from biting temperatures to the predictable rise in heating costs. At the Alliance for Competitive Power (ACP), we are dedicated to ensuring you have the tools and information to manage your energy destiny. These expert-backed strategies - updated for the 2026 landscape will help you maintain a toasty home without the sticker shock.

Turn the Thermostat Down, Not Your Spirits

Lowering your thermostat is the single most effective way to reduce your winter heating bill. According to the Department of Energy, you can save up to 10% a year on heating by turning your thermostat back 7°–10°F for eight hours a day.

2026 Pro Tip: For the best balance of comfort and savings, experts recommend setting your thermostat to 68°F while you are awake and lower while you are asleep or away. In 2026, many homeowners are using "smart away" features to ensure the house is only heated when someone is actually there.

Spin Your Ceiling Fans for Warmth

Ceiling fans aren't just for summer. Most fans have a small switch on the motor housing that reverses the blade direction.

  • Clockwise Rotation: In winter, set your fan to spin clockwise at a low speed. This creates an updraft that pushes warm air, which naturally rises to the ceiling back down into the living space.

  • The Savings: This simple trick can make a room feel significantly warmer, allowing you to lower the thermostat by a few degrees without losing comfort.

Weatherization: The Sneaky Power Saver

Weatherizing your home ensures the heat you pay for actually stays inside. Sealing leaks and adding insulation can slice up to 15% to 30% off your energy tab.

Where to Start:

  • Seal Drafts: Use caulk or weatherstripping to seal gaps around windows and doors.

  • Insulation: Ensure your attic and crawlspaces are properly insulated. As of 2026, new high-efficiency insulation materials can provide even better thermal barriers than traditional fiberglass.

  • Window Treatments: Heavy drapes or thermal curtains act as an extra layer of insulation against cold glass. Open them during sunny days to let in free solar heat and close them at night to trap warmth.

The Power of Small Habits

Consistency is key. Small, daily choices aggregate into large seasonal savings:

  • Layer Up: Put on a favorite sweater or fuzzy socks before reaching for the thermostat.

  • Vent Management: Ensure furniture and rugs aren't blocking heat vents. A blocked vent forces your furnace to work harder and wastes energy.

  • Sun Power: Use the "greenhouse effect" by keeping south-facing curtains open during the day.

Upgrade for the Long Run

If your furnace is over 15 years old, it may be time to consider an upgrade. Modern systems are significantly more efficient than those built a decade ago. Moving from an older 80% AFUE model to a 95% AFUE (Annual Fuel Utilization Efficiency) furnace can instantly reduce your heating costs by at least 15%.

Financial Help: In 2026, many states offer expanded tax credits and rebates for high-efficiency HVAC systems, making the initial investment much more manageable.

Let Technology Do the Hard Work

Smart thermostats have moved from a "luxury" to a "necessity" for the budget-conscious homeowner. In 2026, advanced models use geofencing and learning algorithms to optimize your heating schedule automatically.

  • Automation: They adjust the heat based on whether you are home or even which rooms are currently occupied.

  • Remote Access: Use your phone to lower the heat if you're staying late at work or to warm the house up just before you arrive.

Why Open Energy Markets Are Your Ally

Beyond home efficiency, the structure of the energy market plays a massive role in your bill. States with competitive, open energy markets provide consumers with the power to shop for providers. Our FTI study shows that competition leads to:

  • Slower rate increases compared to monopoly-run utilities.

  • Higher grid reliability through market-driven infrastructure improvements.

  • More innovative green energy plans that let you support renewables while you save.

Take a look at our latest post on energy competition success to see how choice can lower your bottom line.

Frequently Asked Questions (FAQ)

  • How low should I set the thermostat? Experts recommend 68°F when home and dropping it further when away.

  • Is weatherizing expensive? Basic projects like caulking and weatherstripping usually cost less than $50 and pay for themselves in one season.

  • When should I upgrade my furnace? If it's over 15 years old or frequently breaks down, an upgrade will likely save you money in the long run.

  • Why use a smart thermostat? It automates savings so you don't have to remember to adjust the dial every morning.

Conclusion: Your Warmth, Your Way

High heating bills don't have to be a winter inevitability. By combining home efficiency tweaks with the advantages of a competitive energy market, you can take control of your winter budget.

Ready to see how competition can work for you? Connect with us at ACP or visit our homepage to learn more about your rights as an energy consumer.

Alliance for Competitive Power

The Alliance for Competitive Power believes we must keep energy markets open and competitive and not allow electricity monopolies to dictate prices and limit your choices. By protecting and encouraging competition in electricity generation markets, we can drive down costs while working to make sure power generation doesn’t fall back into the hands of an elite few.

https://www.allianceforcompetitivepower.org/
Previous
Previous

The Ultimate Guide to Energy-Efficient Home Improvements

Next
Next

Stay Cool for Less: Top Ways to Reduce AC Costs This Summer