What Arbor Recommends for Thermostat Settings to Maximize Your Electricity Savings

Heating and cooling systems account for nearly 50% of residential energy consumption, according to the U.S. Department of Energy. Households in deregulated electricity markets have two opportunities to reduce costs: securing a lower supply rate and optimizing thermostat settings to use less energy.

Arbor, an automated energy-switching platform operating in 12 deregulated states, addresses the first opportunity by finding lower fixed-rate plans. Documented savings across the platform have reached $7.5 million. Thermostat management addresses the second.

What Temperature Should You Set Your Thermostat to Save Money?

Department of Energy guidelines recommend 68°F during winter months when home and awake, and 78°F during summer months. These settings balance comfort with energy efficiency for most households.

Adjusting from these baselines produces measurable savings. Each degree raised in summer or lowered in winter reduces heating and cooling costs by approximately 3%. Setting the thermostat back 7 to 10 degrees for eight hours daily, such as during work hours or overnight, can cut annual heating and cooling costs by up to 10%.

Recommended Settings by Season

Winter:

• 68°F when home and awake
• 60°F to 65°F when away or sleeping
• 55°F for extended absences (prevents frozen pipes while minimizing costs)

Summer:

• 78°F when home and awake
• 85°F when away for more than two hours
• 72°F maximum for sleeping (National Sleep Foundation recommendation for quality rest)

ENERGY STAR research found that homes with high heating and cooling bills can save approximately $100 annually with a smart thermostat that automates these adjustments.

Which Household Habits Make the Biggest Difference in Reducing Electricity Costs?

HVAC optimization delivers the largest single impact because heating and cooling dominate residential energy use. Direct Energy’s analysis found that HVAC systems consume more than half of average home electricity, with central units using over 2,000 kWh annually.

High-Impact Habits Ranked by Savings Potential

• Thermostat setbacks during absence: 10% annual savings on heating and cooling
• Regular HVAC filter changes: Dirty filters force systems to work harder, increasing energy consumption
• Ceiling fan use: Fans make rooms feel 4°F cooler, allowing higher AC setpoints without discomfort
• Sealing air leaks: Caulking and weatherstripping around windows and doors prevents conditioned air from escaping
• Water heater temperature reduction: Setting to 120°F instead of 140°F reduces water heating costs, which account for 14% to 18% of home energy use

Combining these habits produces compounding effects. Households that adjust thermostat settings, use ceiling fans strategically, and seal air leaks can reduce HVAC costs by 20% to 30% without equipment upgrades.

What Are the Easiest Ways to Lower Your Electric Bill at Home?

Low-effort changes produce meaningful savings. These require no upfront investment and take effect immediately.

Immediate actions:

• Adjust thermostat 2 to 3 degrees from current settings (saves 6% to 9% on heating/cooling)
• Run ceiling fans counterclockwise in summer, clockwise in winter to improve air circulation
• Close blinds and curtains during peak sun hours in summer
• Turn off lights in unoccupied rooms
• Unplug devices not in use to eliminate phantom load (5% to 10% of home electricity consumption)

Low-cost investments under $50:

• Smart power strips that cut power to idle devices
• LED bulbs to replace incandescent lighting
• Weatherstripping tape for doors and windows
• Thermal window film for south-facing windows

CEO Today Magazine’s analysis noted that securing a lower electricity supply rate and reducing consumption work together to maximize savings. Households paying 12 cents per kWh instead of 15 cents save 20% on every unit consumed. Reducing consumption by another 10% through behavioral changes compounds that benefit.

How Can Renters Lower Their Electric Bill Without Major Upgrades?

Renters face restrictions on permanent modifications but retain full control over energy habits and portable equipment. Most high-impact strategies require no landlord approval.

Renter-Friendly Strategies

No permission required:

• Thermostat adjustments (if renter controls the unit)
• LED bulb replacements (keep original bulbs to reinstall at move-out)
• Smart power strips for electronics
• Portable fans for zone cooling
• Window insulation kits (removable film applied with hairdryer)
• Door draft stoppers

May require landlord notification:

• Weatherstripping on doors and windows
• Outlet and switch plate insulators
• Water heater temperature adjustment (if accessible)

U.S. Census Bureau data shows approximately 44 million renter-occupied households in the United States. Many pay utility default rates because they assume energy decisions require landlord involvement. Arbor’s documented results show renters with utility accounts in their own name save at the same rates as homeowners when switching to competitive fixed-rate plans.

Renters in apartments typically consume 7,500 to 9,000 kWh annually, compared to 10,500 kWh for single-family homes. Lower baseline consumption means behavioral changes produce proportionally larger percentage savings.

How Can You Save on Electricity Without Feeling Uncomfortable?

Comfort and efficiency coexist when adjustments happen gradually and supplemental strategies maintain perceived temperature.

Gradual Adjustment Method

Moving the thermostat by one degree per day allows occupants to acclimate without noticing discomfort. A household accustomed to 72°F in summer can reach the DOE-recommended 78°F over six days. Combined with ceiling fan use, perceived temperature remains similar to the original setting.

Supplemental Comfort Strategies

Summer:

• Ceiling fans make rooms feel up to 4°F cooler without lowering actual temperature
• Closing blinds on south and west-facing windows blocks solar heat gain
• Cooking outdoors or using microwave/toaster oven instead of conventional oven reduces indoor heat

Winter:

• Layered clothing and warm socks compensate for lower thermostat settings
• Area rugs on hard floors reduce cold transfer through feet
• Reversing ceiling fan direction (clockwise on low) pushes warm air down from ceiling
• Opening blinds on sunny days captures passive solar heat

Mirror Review’s independent analysis confirmed that Arbor’s platform focuses on securing lower supply rates while other energy management tools emphasize usage tracking. Both approaches contribute to lower bills through different mechanisms.

How Do Supply Rates and Usage Work Together?

Electricity bills reflect two factors: the rate per kilowatt-hour and total consumption. Optimizing both produces the largest savings.

Households consuming 1,000 kWh monthly at 15 cents per kWh pay $150. Reducing the rate to 12 cents saves $30. Cutting consumption by 10% through thermostat management saves another $12. Combined monthly savings reach $42, or over $500 annually.

Arbor addresses the rate side by monitoring electricity markets and switching customers to lower fixed-rate plans automatically. Published savings data shows average annual savings of $600 through rate optimization alone. Combining rate savings with the 10% reduction available through thermostat setbacks pushes total annual savings above $700 for many households.

Where Does Arbor Operate?

Arbor serves households in 12 deregulated states:

• Pennsylvania
• Ohio
• Illinois
• Massachusetts
• Rhode Island
• Delaware
• Maine
• New Hampshire
• Connecticut
• District of Columbia
• Maryland
• New Jersey

Major utilities in these markets include PECO, ComEd, National Grid, PSE&G, Eversource, Central Maine Power, and Delmarva Power. State-issued broker licenses authorize Arbor in each jurisdiction: Pennsylvania A-2023-3043382, Ohio 23-125153E, Massachusetts EB-571, Illinois 23-0681, and New Jersey EA-0727.

Both homeowners and renters qualify if they hold utility accounts in their own name.

What Thermostat Optimization Means for Households in Deregulated Markets

Households in deregulated electricity markets have two levers for reducing costs that regulated market residents lack. Securing a competitive supply rate through a licensed broker addresses the price per unit. Thermostat optimization addresses total units consumed.

Tech Times reported that Arbor customers save up to $600 annually on electricity bills through automated rate switching. DOE guidelines indicate proper thermostat management saves another 10% on heating and cooling, which represents roughly 50% of home energy use. For a household spending $2,000 annually on electricity, rate optimization plus thermostat adjustments could reduce costs by $700 to $800 per year.

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