The 411 on Utility Bills: Average Costs and Ways to Save

Moving to a new home? Mortgage or rent payments won’t be the only thing leaving your bank account. Unfortunately, homeowners and renters must also pay for the cost of utilities, which (trust us) add up quickly. In fact, according to the U.S. Department of Energy, the average U.S. family spends at least $2,200 a year on home utility bills. Many American households spend even more. Of course, there are several factors that affect the cost of an average utility bill, including the size of a household, number of residents, overall usage, geography and climate.

Fortunately, there are ways to cut back on utility costs. Simply purchasing more energy efficient appliances and household products can make a dramatic difference in your utility bills. In addition, homeowners and renters should make a concerted effort to turn off lights when they leave the home and close windows to conserve AC and heat. These small changes are sure to save you money in the long run. For more information on average utility bill costs and tips on how to save, keep reading.

Average Utility Bill Costs and Ways To Save

What are utilities?

Utilities are organizations or companies that provide basic and important home services to homeowners, renters and businesses. Publicly-owned utilities supply communities with basic services and are regulated by local groups, city governments or federal regulators. If you own or rent a home, you’ll very like need essential utilities, such as water and sewerage, trash pick-up, gas and electricity. Many also choose to pay for popular non-essential utilities, such as cable and internet, security monitoring, satellite and phone service.

What does the average household utility bill look like?

Homeowners, renters and businesses typically pay utility bills once a month. The monthly cost of utilities varies depending on usage – though some of your utility bills may be fixed. Utilities that tend to vary in cost include electricity, natural gas and water. Some utility companies may offer a fixed, monthly service charge, but then charge extra fees if usage extends beyond the standard amount. Typically, utility companies will send customers a bill in the mail every month. They may also allow customers to sign up for electronic delivery, where the bill is emailed to the customer. A bill may include usage data from the month, total amount owed and total new charges. It should also tell you when the bill is due.

How much should I expect to pay in utilities each month?

If you’re renting, your landlord or property manager may roll all of your utilities into one monthly bill. Those living in an HOA community may also roll certain utility costs, such as water and gas, into their monthly HOA fees. These fees may stay the same every month. If you’re not renting or living in an HOA community, you can expect utility bills that fluctuate from month to month depending on usage. For instance, the cost of heating and cooling your home will change depending on the season. Here’s a look at average utility bill costs:

The average monthly electric bill in the U.S. is $104.52.
The average monthly water bill in the U.S. is $70.39 for a family of four using 100 gallons per person per day.
The average monthly natural gas bill in the U.S. ranges from $4 to $58 depending on the state.
The average monthly internet/cable/phone bill in the U.S. is $165.
The average monthly security monitoring service bill in the U.S. is $30 a month.

All in all, American households should budget anywhere from $200 to $500 (or more) for utilities each month. Utility costs vary widely depending on geographic location, number of household residents, size of the home, types of appliances and energy usage.

How do I save money on utility bills?

To save money on utility bills, you must work towards making your home more energy efficient, overall. According to the U.S. Department of Energy report, an abundance of energy is wasted each year “through leaky windows or ducts, old appliances, or inefficient heating and cooling systems.” The U.S. Department of Energy provides the following tips to help American save money on energy costs:

Install programmable thermostats to manage heating and cooling system more efficiently.
Air dry dishes instead of using a dishwasher’s drying cycle.
Turn lights, TVs, computers and power strips off when not in use.
Lower thermostat on water heater to 120 degrees Fahrenheit.
Take shorter showers and use low-flow showerheads for additional energy savings.
Air dry clothes.
Only wash clothes and dishes when you have a full load.
Make sure windows and doors are closed when using heating and cooling systems.
Use ENERGY STAR appliances and products.

To save money on non-essential utilities, such as internet, cable and security monitoring services, we recommend: cutting back on expensive TV channels, changing your cable plan to the most basic plan available, bundling cable and internet together, comparing company rates, comparing package options, and paring down your security equipment.

How do I transfer my utilities when I move?

Transferring utilities is a tedious yet necessary task when moving to a new home. We recommend contacting your utility service providers several weeks prior to the move to inform them of your change in address and to schedule set-up and installation dates. Keep in mind that cable, internet and security system providers may need a month’s notice to schedule installation appointments. When scheduling your connect and disconnect days with essential utility providers (think electric and gas), we recommend turning these on in the new home on moving day. This way, you’ll have electricity, heating and cooling during the move. You’ll also want to keep your basic utilities up-and-running in the old home until you move out. For more information about transferring your utilities, check here.

Preparing to move to a new home?

Transferring utilities is just one item on a very long checklist of to-dos when moving to a new home. Fortunately, Moving.com’s moving checklists can help. For a customizable moving checklist, personal tasks list, email reminders and coupons to help you stay organized during a move, check out our move planner tool. Need help finding a reputable moving company? Our extensive network of reliable movers makes it easy to book the best moving company for the job. All relocation companies in our network are licensed and insured, so you can rest assured that your move will be in good hands.