How to Reduce Your Home Energy Bills

You do not need to spend thousands of pounds to start cutting your energy costs. Small changes to heating, draughts, insulation and the way you use energy can make a real difference.

Reducing your energy bills does not have to begin with solar panels, a heat pump or a major home renovation.

For many households, the best place to start is much simpler.

Heating controls that are set incorrectly, unnecessary draughts, poor loft insulation, rooms being heated when nobody is using them and inefficient hot water settings can all add to the amount of energy a home consumes.

Some improvements cost thousands of pounds.

Others cost almost nothing.

The important thing is to tackle them in the right order.

Start by Understanding Where Your Energy Goes

Before trying to reduce your bills, it helps to understand what is using the energy.

For most homes, heating and hot water are the biggest areas to investigate. The Energy Saving Trust estimates that heating and hot water account for more than half of the energy used in a typical home.

That means reducing heat loss and controlling the heating properly can often make a greater difference than worrying about whether a television is left on standby.

Look at your gas and electricity bills over the year rather than concentrating on one winter month.

Think about:

• How much energy you use

• When you use it

• Which rooms are being heated

• How warm you keep the house

• Whether the heating comes on when nobody is home

• How much hot water you use

• Whether your electricity consumption has increased

Understanding the problem comes before buying the solution.

Turn the Heating Down Slightly

This is one of the simplest ways to reduce heating costs.

You do not need to make your home uncomfortable.

The aim is to find the lowest temperature at which you are comfortably warm.

Energy Saving Trust guidance suggests that somewhere around 18°C to 21°C will be suitable for many households, although individual needs will vary.

If your thermostat is routinely set higher than necessary, reducing it slightly can make a noticeable difference over an entire heating season.

The important word is comfortable.

Saving energy should not mean sitting in a freezing house.

Only Heat Rooms When You Need Them

A home does not always need to be heated to the same temperature everywhere.

Bedrooms, spare rooms, studies and living areas may all be used at different times.

Thermostatic radiator valves allow individual rooms to be controlled separately.

A programmer or smart heating control can also help prevent the boiler heating an empty house unnecessarily.

Energy Saving Trust estimates that homes without suitable controls could save around £100 a year by adding a programmer, room thermostat and thermostatic radiator valves.

Sometimes better control is more valuable than replacing the heating system.

Check Your Boiler Flow Temperature

Many modern condensing boilers are set to send water around the radiators at a higher temperature than the home actually needs.

Reducing the boiler flow temperature can allow a condensing boiler to operate more efficiently.

This needs to be done sensibly.

If the temperature is reduced too far, the radiators may no longer produce enough heat during colder weather.

Homes with a separate hot water cylinder also need particular care because the system must still heat the stored water to a safe temperature. Energy Saving Trust advises that systems using one control for both heating and a cylinder should be capable of heating the cylinder to 60°C.

If you are unsure about your system, obtain advice before changing its settings.

Stop Unwanted Draughts

Cold air entering around windows, doors and floors means the heating system has to replace the heat that is being lost.

Typical draught locations include:

• Windows

• External doors

• Letterboxes

• Floorboards

• Skirting boards

• Gaps around pipes

• Unused fireplaces

• Loft hatches

Simple draught proofing can be inexpensive and can also make a home feel much more comfortable.

Energy Saving Trust currently estimates that dealing with draughts around windows, floors and doors could save around £55 a year for a typical home in Great Britain.

But do not simply seal every opening.

Ventilation provided for gas appliances, bathrooms, kitchens, trickle vents and the general health of the building should not be blocked.

Check Your Loft Insulation

If you have an accessible loft, this is one of the first places worth looking.

Warm air rises and an inadequately insulated roof can allow a substantial amount of heat to escape.

Older properties may have some loft insulation but nowhere near the amount normally installed today.

In other homes insulation may have been compressed, moved or disturbed over the years.

Improving loft insulation is often relatively straightforward compared with insulating walls or floors and should normally be investigated before expensive heating technology.

Do Not Forget the Hot Water

Heating water costs money too.

Small improvements can include:

• Insulating exposed hot water pipes

• Using appropriate hot water controls

• Repairing dripping hot taps

• Reducing unnecessary shower time

• Using efficient shower heads where suitable

• Making sure a hot water cylinder is properly insulated

Energy Saving Trust estimates that fitting an appropriate insulating jacket to an uninsulated hot water cylinder can save around £45 a year in Great Britain.

Again, it is not one huge saving.

The benefit comes from several sensible improvements working together.

Use Your Washing Machine and Dishwasher Efficiently

Heating water is usually the expensive part of washing clothes and dishes.

Where appropriate:

• Wash clothes at lower temperatures

• Run full loads rather than several small loads

• Use economy programmes

• Avoid unnecessary tumble drying

• Dry clothes outside when conditions allow

• Avoid repeatedly boiling a full kettle for one drink

None of these measures will transform your finances individually.

Together they reduce unnecessary electricity use every day.

Change the Lights You Use Most

LED lighting uses considerably less electricity than older incandescent and halogen lighting.

You do not necessarily need to walk around the house replacing every working lamp immediately.

Start with the lights that are used for several hours every day.

Kitchens, living rooms, hallways and outside lighting may give the greatest benefit.

As older lamps fail, replace them with efficient LEDs.

Use a Smart Meter to Find the Energy Wasters

A smart meter display can help you understand how much electricity the home is using at any particular moment.

Try turning appliances on and off and watching what happens.

You may discover that:

• An old fridge is using more electricity than expected

• An electric heater is extremely expensive to operate

• Underfloor electric heating has been left running

• A heated towel rail operates continuously

• Outside lighting stays on unnecessarily

• Equipment is running overnight

Knowing where the electricity goes makes it much easier to decide where to save it.

Check Your Energy Tariff

Reducing the amount of energy you use is only half of the equation.

The price you pay for that energy matters too.

Check whether your current tariff remains appropriate.

Homes with electric vehicles, batteries, heat pumps or significant overnight electricity consumption may particularly benefit from tariffs offering different electricity prices at different times.

But do not choose a complicated tariff merely because the headline overnight rate looks attractive.

Look at when your household actually uses electricity.

Improve the Insulation Before Buying More Energy

There is little point continually paying to generate heat and then allowing it to escape.

Depending upon the property, worthwhile improvements could include:

• Loft insulation

• Cavity wall insulation

• Internal wall insulation

• External wall insulation

• Floor insulation

• Improved glazing

• Draught reduction

The appropriate solution depends on how the property is constructed.

Older homes in particular need insulation and ventilation to be considered together.

Do You Really Need New Windows?

Old windows can certainly waste heat.

But replacing every window in a home can be expensive.

Before spending thousands of pounds, consider what the actual problem is.

It could be:

• Single glazing

• Failed double glazing

• Draughts around the frames

• Poor seals

• Damaged opening sections

• Uninsulated surrounding walls

Sometimes repair, draught reduction or secondary glazing may be worth considering before complete replacement.

The right answer depends on the property.

Solar Panels Can Reduce Electricity Bills

Once the inexpensive improvements have been considered, solar panels can potentially provide a much larger long term reduction in electricity purchased from the grid.

A solar system is particularly interesting for households that can use a reasonable proportion of the electricity while it is being generated.

Solar can also work alongside:

• Battery storage

• Heat pumps

• Electric vehicles

• Electric hot water

• Air conditioning

But solar is an investment.

It should be assessed against the home's actual electricity consumption, roof potential and future energy requirements.

Battery Storage Can Change When You Buy Electricity

A battery can store surplus solar electricity for later use.

It can also potentially charge from the grid when electricity is cheaper and supply the home when electricity is more expensive.

That can be useful, but battery storage is not automatically financially worthwhile for every property.

Your electricity consumption and the times at which you use energy matter enormously.

Could a Heat Pump Reduce Your Bills?

Possibly, but the answer depends on the property and what heating system it is replacing.

A heat pump can be an extremely efficient way of producing heat.

But installing one in a poorly insulated home without considering heat loss, radiators and heating controls first may produce disappointing results.

This is why the order of improvements matters.

Improve the home first, then choose the system that is going to heat it.

Check Whether You Can Get Help With the Cost

Do not assume you have to pay for every improvement yourself.

Government schemes, local authority programmes and energy company support can sometimes help with insulation, heating and other improvements.

For winter 2026 to 2027, the Warm Home Discount provides eligible households with a £150 reduction on their electricity bill. The scheme is due to reopen in October 2026.

Other funding may be available for larger improvements.

We have a separate Green Home Grants and Funding guide explaining the main schemes and the types of work they may support.

Always check what assistance is available before placing an order.

If You Are Struggling to Pay Your Energy Bills

Do not wait until the debt becomes unmanageable.

Ofgem advises customers who are struggling to contact their energy supplier as early as possible.

Suppliers are required to work with customers to agree affordable repayment arrangements and may also be able to offer payment reductions, more time to pay or access to hardship funds.

Some households may also qualify for additional support through the Priority Services Register, including people of pension age, families with young children and people whose circumstances mean they need additional assistance.

Asking your supplier what help is available costs nothing.

Start With the Improvements That Cost the Least

If money is tight, there is no reason a Green Home Plan needs to start with expensive technology.

A sensible first approach could be:

Understand your bills

Check the heating controls

Reduce unnecessary heating

Find and deal with unwanted draughts

Check the loft insulation

Reduce unnecessary hot water use

Identify wasteful appliances

Check your tariff

Then consider the larger improvements.

That might eventually mean insulation, new windows, solar panels or a different heating system.

But you will already have reduced energy waste before spending thousands of pounds.

Spend Less on Energy Before Spending More on Technology

The cheapest unit of energy is the one your home does not need to use.

That is why improving a home should not simply mean adding expensive green technology.

Sometimes the biggest difference comes from a combination of relatively modest changes.

For another property, a major investment may make financial sense.

APN Green Homes looks at the whole property and helps identify which improvements should come first.

The aim is simple.

Reduce waste first. Then spend money where it will make the biggest difference.

Every home is different. Your green home plan should be too.

Before spending thousands improving your home, find out which changes could reduce your energy costs and which should come first.

Green Home Assessment £495 + VAT

Tip: Before you spend thousands improving your home, find out where your money will make the biggest difference.