Controllable factors include thermostat settings, equipment efficiency, rate selection, and usage timing. This guide ranks 12 proven strategies by annual savings potential, implementation cost, and difficulty level.
All savings estimates are based on North Texas electricity rates and consumption patterns from U.S. Energy Information Administration data.
Quick Reference: All 12 Strategies Ranked
| Rank | Strategy | Annual Savings | Cost | Difficulty |
|---|---|---|---|---|
| 1 | Raise thermostat to 78°F | $100-150 | $0 | Low |
| 2 | Shop electricity rates annually | $100-300 | $0 | Low |
| 3 | Install smart thermostat | $150-200 | $150-300 | Medium |
| 4 | Use 7-10°F setbacks when away | $75-150 | $0 | Low |
| 5 | Switch to time-of-use plan | $100-200 | $0 | Medium |
| 6 | Close blinds on south/west windows | $30-50 | $0 | Low |
| 7 | Run appliances after 7 PM | $50-100 | $0 | Medium |
| 8 | Replace air filters monthly | $25-50 | $60-120/yr | Low |
| 9 | Annual AC tune-up | $50-150 | $100-200 | Low |
| 10 | Seal air leaks | $50-100 | $50-200 | Medium |
| 11 | Upgrade to high-SEER system | $150-250 | $8,000-15,000 | High |
| 12 | Add attic insulation | $100-200 | $1,500-3,000 | High |
Maximum combined savings potential: $500-800/year
Tier 1: No-Cost Behavioral Changes
Raise Thermostat to 78°F
The U.S. Department of Energy recommends 78°F as the optimal summer setpoint for balancing comfort and efficiency. Each degree above 78°F reduces cooling costs by 6-8%.
| Current → Target | Change | Monthly Savings | Annual Savings |
|---|---|---|---|
| 72°F → 78°F | +6° | $72-108 | $144-216 |
| 74°F → 78°F | +4° | $48-72 | $96-144 |
| 76°F → 78°F | +2° | $24-36 | $48-72 |
Tip: Use ceiling fans to maintain comfort (fans allow 4°F higher setpoint with same perceived comfort).
Use 7-10°F Setbacks When Away
Raising thermostat 7-10°F for 8+ hours daily (while at work or sleeping) reduces annual cooling costs 5-15%, according to U.S. Department of Energy research.
Common concern: "Won't my AC work harder to cool back down?" No. The energy saved during the setback period exceeds the energy needed for recovery. Homes lose heat slower when indoor-outdoor temperature difference is smaller.
Close Blinds on South/West Windows
South and west-facing windows receive the most direct sunlight and heat gain. Closing blinds during afternoon hours reduces solar heat gain by 45-65%. Close south blinds by 10 AM, west blinds by 2 PM.
Tier 2: Low-Cost Upgrades ($50-300)
Install a Smart Thermostat
ENERGY STAR certified smart thermostats save approximately 8% on heating and cooling costs through learning algorithms, geofencing, and optimized scheduling — without requiring manual programming. Payback period: 1-2 years.
| Model | Price | Key Features |
|---|---|---|
| Google Nest Learning | $249 | Auto-learning, sleek design |
| Ecobee Smart Premium | $249 | Room sensors included, voice |
| Honeywell T6 Pro | $150 | Budget option, reliable |
| Amazon Smart Thermostat | $80 | Basic smart features, low cost |
Texas-specific savings: $150-200/year (vs. ~$50 national average) due to North Texas's extended 7-month cooling season.
Replace Air Filters Monthly
Dirty filters restrict airflow, forcing HVAC systems to work harder. A clogged filter can increase energy consumption 5-15%. Replace monthly during cooling season (April-October).
Annual AC Tune-Up
Professional maintenance restores system efficiency by cleaning coils, checking refrigerant charge, and identifying problems. Unmaintained systems lose 5% efficiency annually. Schedule in spring before cooling season.
Tier 3: Rate Optimization (Free)
Shop Electricity Rates Annually
Texas's deregulated electricity market means you can choose from dozens of retail electricity providers. Rates vary significantly — shopping annually ensures competitive pricing.
- Find current rate on recent electricity bill
- Visit Power to Choose to compare Texas electricity rates
- Enter zip code and usage (use 1,000 kWh as baseline)
- Sort by price and compare total monthly cost
- Review contract terms (length, early termination fees)
- Switch online — takes 5 minutes, no service interruption
Switch to Time-of-Use Plan
Time-of-use (TOU) plans charge different rates based on time of day. Peak hours (1-7 PM weekdays) cost more; off-peak hours cost less.
| Period | Hours | Rate |
|---|---|---|
| Peak | 1-7 PM weekdays | $0.18-0.25/kWh |
| Off-peak | 7 PM-1 PM | $0.09-0.12/kWh |
| Super off-peak | 11 PM-6 AM | $0.07/kWh |
Best for: Homes unoccupied 1-7 PM weekdays, EV owners who charge overnight, pool owners who can run pump overnight.
Tier 4: Major Equipment Upgrades
Upgrade to High-SEER System
Upgrading from an old SEER 10-14 system to SEER 18+ reduces cooling energy consumption 30-45%. However, efficiency savings alone rarely justify replacement cost — this strategy makes sense when combined with end-of-life replacement.
| Upgrade Path | Energy Savings | Annual $ Savings |
|---|---|---|
| SEER 10 → 18 | 44% | $200-250 |
| SEER 12 → 18 | 33% | $150-200 |
| SEER 14 → 18 | 22% | $100-150 |
| SEER 14 → 20 | 30% | $125-175 |
Recommendation: When replacing end-of-life equipment, upgrade to SEER 18 minimum. The incremental cost over SEER 15 ($2,000-3,000) pays back in 10-15 years in North Texas climate.
Use our repair vs. replace decision guide to determine if it's time for new equipment, and learn about available rebates and tax credits.
Combined Savings Example
Starting point: 2,500 sq ft home, SEER 14 AC, 72°F setpoint, 1,500 kWh summer consumption
Starting monthly bill: 1,500 kWh × $0.16 = $240/month
| Strategy | Savings | New Bill |
|---|---|---|
| Raise to 78°F | -$43 (18%) | $197 |
| Smart thermostat | -$16 (8%) | $181 |
| TOU rate shift | -$18 (10%) | $163 |
| Air filter + tune-up | -$8 (5%) | $155 |
Total reduction: -$85 (35%) | New bill: $155/month | Annual savings: $510 (summer months only; year-round impact higher)
Data Sources
- • U.S. Department of Energy (energy.gov)
- • U.S. Energy Information Administration (eia.gov)
- • ENERGY STAR (energystar.gov)
- • Public Utility Commission of Texas (puc.texas.gov)