Summer Cooling Costs How to Save on Air Conditioning Bills in 2025

Why Summer Electricity Bills Spike

Summer bills can double or triple compared to spring/fall. Why bills spike:

❄️ AC = 50% of summer electricity use (EIA)
❄️ Central AC: 3,000-5,000 watts/hour when running
❄️ Adds $100-$200/month to average bills

Factors increasing AC demand:

🌡️ Higher outdoor temps = longer run cycles
🌡️ Northeastern humidity = AC removes moisture AND heat

💡 Understanding these factors helps you target the most effective savings strategies.

Optimal Thermostat Settings for Savings

DOE recommended settings:

🏠 78°F when home and awake (optimal comfort/efficiency)
🚗 85°F or off when away 2+ hours
📈 Each degree below 78° = 3-4% higher costs

Smart thermostat benefits:

🤖 Programmable: 10% annual savings
🤖 Smart (Nest, Ecobee, Honeywell): Learn your patterns automatically

💡 Ceiling fan tip: Fans let you raise thermostat 4°F while maintaining comfort — moving air feels cooler on skin.

Air Conditioning Efficiency Tips

Maintenance essentials:

🔧 Replace air filters monthly during heavy use (dirty filters = 5-15% more energy)
🔧 Annual professional maintenance: refrigerant, coils, electrical
🔧 Keep outdoor unit clear: 2+ feet clearance for airflow

Ductwork and vents:

🔌 Seal duct leaks (can waste 20-30% of cooled air)
🔌 Keep all vents open and unobstructed

Reduce heat gain:

🪟 Close blinds on south/west windows during afternoon

Understanding Peak Demand and Timing

Peak pricing periods:

⚡ Weekday afternoons: 2 PM - 7 PM
⚡ Electricity costs MORE during these hours

Savings strategies:

💰 Pre-cool in morning (lower rates)
💰 Raise thermostat during peak hours
💰 Run dishwashers/laundry in early morning or evening

Utility programs:

📋 AEP Ohio, Duke, PECO offer demand response programs
📋 Get bill credits for allowing slight temp increases during grid emergencies
📋 Check with your utility about time-of-use rates

Reducing Heat Gain in Your Home

Insulation and sealing:

🏠 Attic insulation: R-49 or higher
🏠 Seal air leaks: windows, doors, electrical outlets
🏠 Reflective window film on south/west windows

Daily habits:

🍳 Use exhaust fans when cooking/bathing
🍳 Avoid ovens in hot afternoons — grill or use microwave
💡 Switch to LED lighting (incandescent = 90% heat)

Long-term improvements:

🏠 Light-colored roofing reflects rather than absorbs solar heat
🏠 Exterior shading devices on sunny windows

When to Consider Equipment Upgrades

SEER ratings comparison:

📊 Systems 10-15 years old: SEER 10 or lower
📊 Current minimum: SEER 14
📊 High-efficiency: SEER 20+
📊 SEER 10 → 16 = 40% energy reduction

Upgrade options:

⚡ Heat pumps: cooling AND heating efficiency
⚡ Variable-speed systems: adjust output vs on/off cycling

Financial assistance:

💰 Federal tax credits
💰 Utility rebates

💡 Consider replacement if: Repair costs > 50% of new system price, or frequent repairs needed.

Shopping Electricity Rates Before Summer

Lock in rates before peak season:

💰 Competitive suppliers often beat utility default rates
💰 Fixed-rate contracts protect against summer price spikes

Where to compare:

💻 ElectricRates.org
💻 PUCO Apples to Apples
💻 PAPowerSwitch.com

What to consider:

Contract length (12-month locks rates through next summer)
Green energy options (some competitively priced)
Monthly service fees (factor into total cost)

✅ Switching takes minutes with no service interruption.

Frequently Asked Questions

What is the most cost-effective thermostat setting for summer?

The Department of Energy recommends 78°F when home and awake as the optimal balance between comfort and efficiency. Each degree lower increases cooling costs by 3-4%. Using ceiling fans allows you to raise the setting by 4 degrees while maintaining comfort. Set to 85°F or off when away for more than two hours.

How much can I save by upgrading my air conditioner?

Upgrading from an older SEER 10 system to a new SEER 16 unit reduces cooling energy consumption by approximately 40%. For a household spending $200 monthly on summer cooling, this translates to $80 monthly savings. Federal tax credits and utility rebates can offset purchase costs.

Do ceiling fans actually reduce air conditioning costs?

Ceiling fans do not cool air but create wind chill effect making you feel 4 degrees cooler. This allows raising your thermostat setpoint by 4 degrees while maintaining comfort, reducing AC runtime and costs. Turn fans off in unoccupied rooms since they cool people, not spaces.

When is electricity cheapest during summer days?

Electricity typically costs least during overnight hours from 9 PM to 6 AM when demand is lowest. Peak pricing occurs weekday afternoons from 2 PM to 7 PM when air conditioning use peaks. Time-of-use rate plans from some utilities offer lower prices for off-peak usage.

Should I switch electricity suppliers before summer?

Shopping rates before summer peak season often reveals competitive fixed-rate offers below utility default rates. Locking in fixed rates protects against summer price increases. Compare offers through your state comparison tools like Apples to Apples or PA Power Switch. Switching takes minutes with no service interruption.

About the author

Brad Gregory

Consumer Advocate

Brad moved from California to Texas in 2009 and got confused by electricity shopping—something that didn't exist where he came from. That confusion led him to build ComparePower.com. At ElectricRates.org, he's applying the same approach to Ohio, Pennsylvania, and Massachusetts.

Energy plan comparisonCustomer experienceDeregulated electricity marketsEnergy shopping strategiesResidential rate comparison

Topics covered

summer energy costs air conditioning efficiency cooling costs energy savings electricity bills thermostat settings peak demand

Sources & References

DOE - Energy Saver Tips (U.S. Department of Energy): "DOE recommends 78°F for optimal balance of comfort and AC efficiency"Accessed Jan 2025
ENERGY STAR - Central Air Conditioning (U.S. Environmental Protection Agency): "ENERGY STAR explains SEER ratings and air conditioner efficiency standards"Accessed Jan 2025

Last updated: December 10, 2025