Winter Heating Bills Are Breaking Records. Here's How to Bring Yours Down
Winter heating bills are expected to rise sharply this season, with costs projected to jump 9.2% compared to last year. New estimates from the National Energy Assistance Directors Association, or NEADA, show the average U.S. household will spend $995 on heating this winter — $84 more than last year.
Homes that rely on electric heating are likely to see the biggest jump, with costs up 12.2%, while households using natural gas can expect an 8.4% increase. Those using heating oil or propane should see little change from last year.
“These increases may not sound dramatic to higher-income households, but for families already struggling, they are devastating,” Mark Wolfe, executive director of NEADA, said in the report. “Millions of households are being pushed deeper into utility debt and closer to shutoffs simply because they cannot afford to keep their homes warm.”
Electricity costs are hitting new highs, reaching the highest in a decade after adjusting for inflation. Since the start of the year, the average monthly electric bill has jumped nearly 10%, growing faster than wages and overall inflation, according to the NEADA. A separate analysis from Climate Power found U.S. electric bills have risen roughly 13% in 2025, reflecting broader trends in energy supply and demand.
Since 2021, the average cost of electricity per kilowatt-hour has risen by 27.9%, while the average monthly bill is up nearly 30%, according to the NEADA.
NEADA points to several factors driving the increases, including higher grid financing costs, a growing reliance on natural gas, surging demand from data centers, aging infrastructure and regional capacity shortfalls.
Rising costs are likely to hit households that rely on government assistance the hardest. Funding for the Low-Income Home Energy Assistance Program, or LIHEAP — a federally funded program that helps cover immediate home energy needs — has fallen to $4.1 billion this year, down from $6.1 billion two years ago.
Roughly 6.7 million households are currently enrolled in the program, meaning even modest increases in heating costs could strain already tight budgets and force difficult trade-offs between paying utility bills and covering other essentials.
Tips to save on winter energy costs
For households facing higher energy bills this winter, experts say small, consistent changes at home can help blunt the impact.
"The quickest way to cut winter heating costs is to stop paying for heat you don’t get to keep — which means starting with insulation and air sealing before anything else," says Paul Hines, vice president of power systems at EnergyHub.
"Drafty doors, leaky windows and poor insulation force heating systems to run longer than necessary, driving up bills. Even simple sealing fixes can make a noticeable difference."
Another effective step is adjusting your thermostat.
"Being smart with your thermostat is one of the most effective ways to reduce your energy usage," says Kate Colarulli, chief strategy officer at CleanChoice Energy.
During the winter months, keeping indoor temperatures between 60 and 67 degrees Fahrenheit at night and around 68 degrees during the day can help keep heating bills down.
Colarulli also highlights the value of a smart thermostat, which can automatically lower temperatures when you're away or asleep. According to data from Energy Star, households that use a programmable or smart thermostat can save up to $180 a year in energy costs.
Using cold water for laundry can further cut costs. Heating water accounts for about 90% of the energy used in washing machines, and switching to cold water could save up to $0.80 per load (or about $160 a year if you wash up to four loads a week).
Matt Plouffe, an energy consultant at Efficiency Vermont, advises being strategic with space heaters. Electric space heaters are among the most expensive ways to heat a home, so he suggests using blankets or layering clothes whenever possible. If a plug-in heater is necessary, focus on heating the smallest room safely and make sure furniture, carpets and drapes don’t block airflow.
Finally, Hines says that many households miss out on savings simply by overlooking state and local utility incentives designed to lower energy costs: "Rebates for energy audits, weatherization and efficient heating systems like heat pumps can significantly reduce costs and make efficiency upgrades far more affordable."
Resources such as Rewiring America can help both homeowners and renters identify federal, state and utility programs they may qualify for based on where they live.
To see a real difference, experts recommend focusing on energy-conscious habits you can realistically maintain. Air-drying clothes, using appliances during off-peak hours and keeping thermostat settings consistent throughout the season can help households stay comfortable while limiting the impact of rising heating costs.
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Your Heating Bill Will Skyrocket This Winter. Here's What to Do About It