As temperatures rise this summer, the cost of cooling your home is expected to rise as well. Taking a few steps now will help you manage bills better.
Average seasonal electricity costs from June to September are expected to rise 8.5 percent to $778 this year, according to a forecast from the National Energy Assistance Directors Association. The group helps states secure federal funds to help low-income people pay their cooling and heating bills.
Households in the South will bear “a disproportionate share of the increase in summer cooling costs,” the forecast says. The region that includes Florida, Georgia and the Carolinas is forecast to see a 13.5 percent increase in electricity costs to a seasonal average of $860, while the region including Texas and Oklahoma is expected to see an 11.5 percent increase to $924.
Retail electricity costs continue to rise faster than inflation due to utility grid upgrades and demand for new data centers running artificial intelligence, as well as increased summer usage due to higher temperatures, the forecast said. The combination of rising prices and rising weather-related demand is leading to “persistently high and rising summer cooling costs,” said the forecast, based on data from the Energy Information Administration and the National Oceanic and Atmospheric Administration.
While Americans are already dealing with higher costs at the pump due to the war in Iran, the impact on electricity prices in the U.S. is more complex. Domestic supplies of natural gas, which powers power plants that generate electricity and has a major impact on the price of electricity, remain plentiful, said Kenneth Medlock, senior director at Rice University’s Center for Energy Studies.
“U.S. natural gas prices were not impacted by the conflict in the Middle East,” he said in an email.
But that could change if the war drags on, said Trevor Higgins, senior vice president for energy and environment at the Center for American Progress, a think tank. “If this war in Iran continues, it could be even more exposed to price volatility,” he said.
Mark Wolfe, executive director of the Energy Directors Association, had the simplest advice for consumers. “The best way to reduce your energy bill is to use less of it,” he said.
What steps can I take to keep my home cool?
Relatively inexpensive measures include shading windows during the day to block direct sunlight, installing weatherstripping in gaps around doors and windows to keep cool air in, and regularly replacing the filters in your traditional forced-air cooling system, said Shelby Gatlin, executive director of the Residential Energy Services Network, which sets standards for energy efficiency ratings of buildings in the United States.
“Filter changes are often overlooked and have an immediate impact,” costing about $15, she said. If the filter is clogged with dust and pet hair, the system has to work harder – and use more electricity. (If you don’t know how to change a filter, check out this video from the National Center for Healthy Housing.)
Should I have my air conditioning upgraded?
A preseason inspection to check refrigerant levels and optimize your cooling system can ensure it’s working efficiently and make costly failures less likely when the thermometer rises, said Ana Maria Carreño, climate program director at CLASP, a global nonprofit that advocates for the energy efficiency of everyday appliances.
When you buy new home appliances like refrigerators and dishwashers, look for the blue Energy Star seal, which indicates they are energy efficient, Ms. Carreño said. (The Trump administration had targeted the program for elimination, but it has survived so far, she said.)
Upgrading an older air conditioner to a more efficient model can save money in the long run, but is expensive up front. So first, make sure the ducts in your current system are properly sealed, Ms. Gatlin said. There’s no point in spending thousands of dollars on a new system if you’re effectively “cooling nature” with a leaky house, she said.
You can have a duct leak test done on your home, Ms. Gatlin said. You can find a list of rated contractors on the network’s website. Information about residential energy ratings can also be found on the Department of Energy website.
Some states may offer rebates to cover the cost of energy-efficient home improvements, Mr. Wolfe said. To verify, contact your state’s energy efficiency office.
Window air conditioners are relatively inexpensive but generally less efficient than other cooling systems, Ms. Carreño said. Make sure they are installed properly to minimize the leakage of cool air to the outdoors. Experts at This Old House magazine recommend keeping appliances out of direct sunlight if possible and keeping the filter clean to maximize efficiency.
What temperature should I set my thermostat to in summer?
Adjusting your central air conditioning thermostat can help you save on utility bills. In states with high summer temperatures, the Energy Directors Association recommends keeping the thermostat at 70 to 78 degrees Fahrenheit when people are present and at 78 degrees Fahrenheit when the house is empty. (Each degree of temperature increase between these temperatures saves about 3 percent on your electric bill.)
People without air conditioning can use fans. They speed up the evaporation of sweat from your skin and make you feel cooler. However, turn them off when the rooms are unoccupied. “There’s no reason to leave a fan on when you’re not in the room,” Ms. Carreño said. Dehumidifiers can also help make your home feel more comfortable.
Some communities offer air-conditioned cooling and hydration centers during times of extreme heat. Try calling your state’s public service 211 number or check the National Center for Healthy Housing website.
Can plug-in solar panels help?
Portable plug-in solar panels, sometimes called “balcony” solar panels, are popular in parts of Europe and are increasing in popularity in the United States as a way to reduce electricity costs. They consist of one or more solar panels and a small inverter that converts the electricity into electricity that can be used by your devices. Instead of requiring an expensive, permanent installation on the roof, the panels can be mounted on a balcony or placed on a patio. You can take them with you when you move, so both homeowners and renters benefit.
The systems are currently available starting at $2,000. Savings vary depending on the climate where you live and local electricity rates.
Utah became the first state to approve plug-in solar power in 2025. “People like it,” said Jennifer Eden, senior associate for climate and clean energy at Utah Clean Energy, a nonprofit group. “It’s small, simple and accessible.”
Maine and Virginia have also now passed laws, and more than a dozen other states are considering similar measures, according to Bright Saver, a nonprofit group that promotes these systems. The legislation generally facilitates coordination with electric utilities and establishes rules requiring safety certifications for the systems.
What happens if I have trouble paying my electric bill?
You’re not alone. According to the Energy Directors Group, one in six households in the United States are behind on their energy bills.
Both homeowners and renters can receive assistance with utility bills through the Low Income Home Energy Assistance Program, depending on income and family size. The federal government finances the program and the states distribute the money.
About half of states offer summer cooling assistance through programs, Wolfe said. However, the programs differ in how much money is available and who qualifies. The Department of Energy offers a map with contacts in each state. Or you can search at www.energyhelp.us. States often set eligibility at 150 percent of the federal poverty level — about $49,500 for a family of four, Mr. Wolfe said. However, some have higher income limits.
Some states offer additional help, but the rules and amounts vary, he said. It is therefore best to contact your energy supplier.