How Do You Save Money on Heating Bills This Winter?

Summary

Heating your home in winter often costs more than anything else on your utility bill. This article breaks down the most effective ways to lower those costs. It covers how heat escapes from homes, which systems may be running inefficiently, and what upgrades or small changes can reduce waste.

Key Takeaway

Most homes lose heat through leaks, poor insulation, and outdated equipment. Fixing those issues such as sealing gaps, improving insulation, and maintaining your heating system can reduce winter heating bills by up to 30%. Combining these steps with available rebates and tax credits makes saving money easier.

Have you ever opened your heating bill in January and wondered why it’s so high even though nothing about your routine changed?

It’s a common question: How do you save money on heating bills this winter?

Many U.S. households face the same challenge each year. Heating uses more energy and costs more than any other system in the home. According to the U.S. Department of Energy (DOE), heating typically accounts for about 29% of your total utility bill. That’s nearly a third of what you pay every month, especially during colder seasons.

Understanding why this happens and how to lower the heating bill in winter without making your home uncomfortable can make a big difference. 

This article looks at common causes of high heating bills, explores how homes lose heat, and outlines various ways to reduce energy use in simple, practical terms.

Why Heating Costs So Much in Winter

In colder months, most heating systems have to work harder and run longer to keep indoor temperatures stable. Heat naturally escapes through windows, doors, walls, floors, and roofs. If a home isn’t well-insulated or properly sealed, a lot of warm air can leak out—making the heating system run longer to compensate.

Some older systems also operate less efficiently due to age, wear, or lack of maintenance. Others may use more expensive fuel sources. And even small issues, like a clogged air filter or drafty door, can increase costs over time.

The DOE notes that weatherizing a home can reduce energy use by 30% and also helps reduce environmental impact.

What Makes a Home More Energy Efficient in Winter?

Saving on heating usually comes down to two main strategies:

1. Reducing heat loss — This involves sealing leaks, improving insulation, and using materials or technologies that trap heat inside the home.
2. Improving system efficiency — This means making sure heating systems, thermostats, and other related components are working as efficiently as possible.

Let’s go through some of the most effective steps that tend to help homeowners lower their heating bills in winter.

Heating System Checkups Can Prevent Waste

Many homeowners go years without having their heating system inspected. But regular checkups may help catch small problems early like clogged filters, worn-out parts, or airflow blockages that cause systems to work harder than necessary.

A professional tune-up for a heating system typically includes:

• Inspecting the heat exchanger for cracks
• Checking for gas leaks or carbon monoxide
• Lubricating moving parts
• Replacing or cleaning filters
• Testing the thermostat

According to the DOE, a well-maintained heat pump can use up to 25% less energy than one that hasn’t been serviced.

If your system is running but not warming the house, there may be an issue beyond efficiency such as airflow problems, faulty sensors, or fuel delivery concerns. Here’s what it could mean if your heater is blowing cold air.

Energy Audits Show Where the Energy Goes

An energy audit is a professional evaluation of a home’s energy use. Trained auditors use tools like blower doors and thermal imaging to locate leaks and measure insulation performance.

Homeowners often learn where they’re losing heat, whether it’s through the attic, around ducts, or through windows.

Typical audits include:

• Evaluating insulation levels
• Checking the furnace or boiler efficiency
• Inspecting ductwork
• Detecting air leaks

Prices range from $211 to $700, though some local utilities offer free or subsidized audits.

Audits may uncover issues that, once addressed, can significantly lower heating bills in winter.

Hot Water Systems Can Be Insulated for Added Savings

Water heaters and hot water pipes can lose heat, especially if located in uninsulated areas like basements or garages. Wrapping exposed hot water pipes with foam sleeves can reduce heat loss and help retain water temperature longer.

Adding a water heater blanket (roughly $30) may also help, depending on the unit. These wraps are especially useful for older water heaters that aren’t well insulated.

Window and Door Leaks Are Often Overlooked

Heat tends to escape through the tiniest of gaps. Common problem areas include:

• Window frames
• Door edges
• Baseboards
• Light switches and outlets on exterior walls

A simple test with a lit stick of incense or a damp hand held near suspected areas may show where air is entering.

When leaks are identified, many homeowners use:

• Weather stripping for doors and operable windows
• Caulking for stationary seams
• Foam gaskets behind outlet covers
• Plastic film over windows during winter months

These materials are affordable and available at most hardware stores. Foam gaskets for outlets cost less than $10 for a multi-pack. Door sweeps and draft stoppers typically cost under $15 and can block noticeable drafts.

Replacing or Upgrading Windows Helps Retain Heat

In homes with older windows, basic sealing may not be enough. Upgrading to low-emissivity (low-e) storm windows or full window replacements can make a noticeable difference in comfort and winter energy savings.

Low-e windows have a special coating that reflects heat back into the room during winter and reduces heat gain during summer.

According to the DOE, replacing single-pane windows can reduce heating and cooling costs by 25–30%.

For those not ready for full replacement, temporary storm window kits can serve as an interim solution.

Attic Insulation Is Often Inadequate

The attic is one of the most common areas where heat escapes. Warm air rises and moves toward cooler spaces in a process known as the stack effect.

If attic insulation is missing, thin, or uneven, that warm air may quickly exit the home.

Signs that insulation may need to be added:

• Seeing attic floor joists exposed
• Drafty upper rooms
• Uneven temperatures in the home

The Energy Star program provides region-specific guidelines for recommended insulation levels (measured in R-values). In colder climates, insulation with R-49 or higher is often suggested.

Hiring a professional insulation contractor ensures proper installation and air sealing.

Basements and Crawlspaces Also Need Attention

Heat doesn’t just escape upward, it can also leak out below. Basements and crawlspaces tend to have uninsulated walls or floors.

Sealing gaps around ductwork, installing rigid foam insulation along basement walls, and insulating floors above crawlspaces can reduce heat loss and improve indoor comfort.

It’s often best to consult a contractor for this work, since basements may involve moisture and combustion risks.

Thermostats Can Adjust Heating More Efficiently

A programmable or smart thermostat makes it easier to match heating schedules to daily routines.

Setting the temperature lower at night or during work hours tends to reduce heating system run time. Most experts suggest setting the temperature 10% lower for at least 8 hours per day.

Smart thermostats can also learn preferences over time and adjust accordingly. Some models connect to phone apps, allowing remote control from anywhere.

Sunlight Offers Free Daytime Heating

Keeping curtains or blinds open during the day can warm indoor air naturally. South-facing windows typically receive the most sunlight and can heat living spaces without using the furnace.

Closing curtains at night helps trap that warmth inside.

Thermal or insulated curtains add another layer of defense against heat loss, particularly on older or single-pane windows.

Budget Billing Spreads Heating Costs Evenly

Some utility companies offer budget billing programs that average monthly bills over a year. This helps avoid high winter spikes by distributing costs more evenly.

It doesn’t reduce total spending but can make monthly payments more predictable and easier to manage.

Customers interested in this option can contact their utility provider directly to see what plans are available.

Tax Credits and Rebates Reduce Upgrade Costs

Homeowners who invest in energy-efficient heating upgrades may qualify for federal tax credits and rebates.

The Inflation Reduction Act provides incentives for improvements such as:

• Insulation
• Energy-efficient windows and doors
• Electric heat pumps
• Smart thermostats

These credits can cover up to 30% of project costs, with limits of $1,200 annually for weatherization and up to $2,000 for heat pumps.

In addition, there are local and state-level incentives, along with zero-interest financing options in some areas. The DOE maintains an up-to-date list of rebates.

Replacing Air Filters Keeps Systems Running Smoothly

Air filters in heating systems trap dust and debris. Over time, they become clogged and reduce airflow, making systems work harder.

Replacing filters regularly typically every 1 to 3 months may improve efficiency and indoor air quality.

Dirty filters not only raise costs but can shorten the life of the system. Most filters are inexpensive and easy to install.

Simple Habits Can Add Up

In addition to these larger improvements, small everyday habits also contribute to energy efficiency:

• Wearing warm layers indoors
• Using area rugs to insulate floors
• Keeping furniture away from vents and radiators
• Closing doors to unused rooms

Each of these steps alone may not save much, but together they help reduce strain on the heating system.

Final Thoughts

Heating costs are rising in many parts of the country, especially for households that rely on natural gas. The U.S. Energy Information Administration projects that heating costs will remain consistent or increase slightly this winter, depending on location and fuel type.

But energy efficiency isn’t just about comfort, it’s about control. Homeowners who understand where their energy goes are better equipped to manage costs and make informed decisions.

And while the question may start as: how do you save money on heating bills, the better question might be: how do you make your home smarter, safer, and more sustainable over time?

One Hour Heating & Air Conditioning helps homeowners in Hampton Roads make their homes more energy efficient with heating system tune-ups, insulation guidance, thermostat installation, and more.

Looking to lower your heating bill this winter or prepare your home for colder months?

Contact us today to schedule a home heating inspection or consultation. We’re here to help you stay warm without overspending.

Frequently Asked Questions

1. What temperature should I set my thermostat to in winter to save money?

Most experts recommend setting your thermostat to 68°F (20°C) while you’re home and awake. If you use a traditional furnace, lowering the temperature by 7–10 degrees while you’re asleep or away for at least eight hours can help cut heating costs by up to 10% a year. However, if you have a heat pump, avoid large temperature setbacks, this can trigger inefficient backup heat strips. Instead, consider using a smart or programmable thermostat designed for heat pump systems to make gradual, efficient adjustments.

2. How often should I replace my furnace or heating system filter?

Replace or clean your heating system’s air filter every 1 to 3 months during the heating season. A clean filter improves airflow, boosts efficiency, and helps keep your system running smoothly.

3. Are space heaters a good way to lower heating bills?

Space heaters can be cost-effective if you only need to heat a small area for a short time and lower your central thermostat. However, they should be used safely and not left unattended. For whole-home heating, improving insulation and sealing drafts is more effective.

4. What is the most cost-effective way to insulate my home?

Start with areas that lose the most heat, such as attics, basements, and around windows and doors. Adding insulation to the attic and sealing leaks with weatherstripping or caulk are affordable steps that offer a strong return on investment.

5. Do smart thermostats really save money on heating bills?

Yes, smart thermostats can help you automate temperature adjustments based on your schedule. Many homeowners see savings of about 8% on heating and cooling costs by using programmable or smart thermostats.

6. How can I tell if my home is losing heat through windows or doors?

Check for drafts by holding a lit stick of incense or a damp hand near window and door frames. If the smoke wavers or you feel cold air, there’s likely a leak. Sealing these gaps with caulk or weatherstripping can reduce heat loss and lower bills.

7. Are there any rebates or tax credits for making my home more energy efficient?

Yes, federal, state, and local programs often offer rebates and tax credits for improvements like insulation, energy-efficient windows and doors, heat pumps, and smart thermostats. Check the Department of Energy’s website or your local utility for current incentives.