How To Reduce Heating Costs: 29 Ways to Save Money

Heating costs can take a significant chunk out of your budget, especially during the colder months. If you’ve ever wondered how to reduce heating costs, you’re not alone. The good news is that there are plenty of practical and effective ways to save on your energy bill without sacrificing comfort.

In this guide, we’ll explore 29 ways to lower your heating expenses, from simple tips to more advanced strategies. Whether you’re looking to save a little or a lot, these actionable tips will help you stay warm while keeping your wallet happy.

Ready to turn down the heat on your bills? Let’s get started and warm up to some serious savings!

Reduce Heating Costs by Understanding Where Your Money Is Going

According to hydroone.com, over 60% of one family household yearly energy costs goes on home heating and close to 20% to water heating. Home appliances use approximately 10% of the energy, and 5% of energy is used on air conditioning and lighting.

60% of your budget for heating your home is a considerable amount of money, so I’m sure finding ways to reduce heating costs and save money will be at the top of your to-do list.

Congratulations if you’ve installed a heat pump or condensing water heater and are enjoying the efficiency and savings they bring; however, we can still save money on our heating bills, even with a heat pump or ultra-efficient heater but, and there’s always a but isn’t there?

We need to get off ours and do some work. Sorry, it won’t happen on its own.

29 Ways to Reduce Heating Costs

In this section, we’ll explore 29 practical ways to reduce your heating costs, broken down into three key areas:

• Your thermostat, 
• 23 ways to save money on heating that cost nothing,
• 5 bigger budget items to consider.

1. Thermostat Hacks: How to Heat Smarter, Not Harder

These small gadgets are so important and often abused or overlooked.

The central thermostat in your house is a critical part of controlling your home environment; however, it also plays a significant role in your mission to control your home energy costs. You should treat it with great respect!

If it’s old, consider upgrading it to a programmable unit. So, for example, if you want to boost the heating before you get home on an icy evening, it’s simple – just a few taps on an app.

A quality thermostat, properly fitted, will save money on your heating and energy bills. It’s like Mission Control, and you’re in charge. You can save 10-20% of your annual power bill by turning the temperature down just a few degrees, and you won’t feel it. Turning the temperature down by even 1 C (33 F) will save money.

You have control, use it!

If you lower the temperature in winter by 3 C (35.6 F) at night and when you leave the house during the day, even for a few hours.

“The Department of Energy estimates savings of about 1 percent for each degree of thermostat adjustment per 8 hours…” [source].

Don’t adjust your thermostat excessively; a suggestion is to have only one person do it because fiddling with it can cost you money. For example, the kids turn it up because they feel cold, then they go out, forgetting to turn it back down again.

If your central thermostat is crucial, the one attached to your hot water system is even more important, yet often ignored. Heating water for your home accounts for 18% of your power consumption. However, water heaters are usually set to 60 C (140 F). Your water should never be so hot it scalds, especially important when you have children or elderly adults in the house. You can safely turn it down to 49 C (120 F), and it will save you money each year. This is a factory set temperature, so no need to change it drastically.

2. Adjust Temperatures in Unused Rooms

Lowering the temperature in unused rooms can reduce heating costs significantly. Set thermostats in these areas to around 15°C (59°F) and keep the doors closed to trap heat in the main living spaces. This prevents unnecessary heating of unoccupied areas, reducing strain on your system. If your home has a zoned heating system, take advantage of it by only heating the areas you use most frequently.

3. Seal Air Leaks

Even small gaps around windows, doors, and other openings can allow warm air to escape and cold air to enter. Use weather stripping or caulk to seal these leaks and prevent drafts. You can also install thermal curtains or plastic film insulation for an added layer of protection. Identifying and sealing these leaks will help maintain a consistent indoor temperature and lower heating bills.

4. Ensure Proper Ventilation

Blocked vents can cause your heating system to work harder than necessary. Make sure furniture, rugs, or curtains are not obstructing vents or radiators. Regularly clean vents and ductwork to improve airflow and system efficiency. Good ventilation ensures heat is distributed evenly throughout your home, reducing energy waste.

5. Seal Heating Ducts

Over time, heating ducts develop small leaks that let heated air escape before it reaches your rooms. Use metallic tape or mastic sealant to cover any leaks, especially in ducts located in unheated areas like attics or crawl spaces. Avoid using standard duct tape, as it deteriorates quickly. Properly sealed ducts can improve heating efficiency by up to 20%.

6. Seal Your Fireplace

Fireplaces can be a major source of heat loss if not properly sealed when not in use. Install a chimney balloon or flue blocker to prevent warm air from escaping. If you never use your fireplace, consider permanently sealing it to eliminate heat loss. Properly sealing the fireplace ensures that your heating system isn’t working harder than necessary to maintain warmth in your home.

7. Insulate Ducts

Uninsulated ducts in attics, basements, or crawl spaces can cause significant heat loss. Wrapping them with duct insulation minimizes heat escape, improving efficiency and reducing your heating costs. Insulation also helps maintain consistent air temperatures as it travels through your home. This is an easy DIY project that pays off quickly.

8. Listen for Noises

Unusual noises from your heating system may indicate problems such as clogged filters, loose components, or mechanical issues. A properly functioning system should operate quietly. If you hear banging, whistling, or rattling sounds, it’s best to have a professional inspect your system. Addressing minor issues early can prevent costly repairs later.

9. Schedule Annual Maintenance

Regular maintenance keeps your heating system running efficiently and extends its lifespan. A professional tune-up includes cleaning components, checking for leaks, and ensuring proper operation. Investing in a maintenance plan can prevent unexpected breakdowns and keep your energy bills under control. Well-maintained systems use less energy and provide more reliable heating.

10. Use Space Heaters Wisely

Space heaters are a cost-effective way to warm specific areas instead of heating the entire home. Choose energy-efficient models and use them only in occupied rooms. Never leave them unattended, and keep them away from flammable materials. Using space heaters strategically can supplement your main heating system and reduce overall energy use.

11. Change Air Filters

Dirty air filters restrict airflow, forcing your heating system to work harder. Replace filters every one to three months, depending on usage and indoor air quality. Clean filters improve efficiency, extend the lifespan of your system, and enhance indoor air quality. This simple step can lead to noticeable energy savings.

12. Add Rugs to Hard Floors

Hardwood, tile, and laminate floors can feel cold and contribute to heat loss. Adding rugs provides an extra layer of insulation, making rooms feel warmer and more comfortable. Rugs also help trap heat and prevent it from escaping through the floor, reducing the need to turn up the thermostat.

13. Adjust Ceiling Fans

Ceiling fans aren’t just for summer. Set them to rotate clockwise at a low speed in the winter to push warm air downward. This improves air circulation and helps distribute heat more evenly throughout the room. Using ceiling fans effectively can reduce the strain on your heating system.

14. Layer Up

Wearing warm clothing indoors allows you to lower the thermostat without sacrificing comfort. Dressing in layers helps retain body heat, reducing the need for excessive heating. Cozy blankets and warm socks can also make a big difference in staying comfortable without increasing energy costs.

15. Rearrange Furniture

Positioning furniture strategically can improve heating efficiency. Move couches, beds, and tables away from windows and exterior walls to reduce heat loss. Keep furniture from blocking vents or radiators to allow for better heat distribution. Small changes in furniture placement can improve warmth without extra energy use.

16. Keep Vents and Radiators Clear

Blocked vents and radiators prevent heat from circulating properly. Ensure that rugs, furniture, and curtains do not obstruct airflow. Cleaning vents and radiators regularly also improves efficiency and ensures even heat distribution throughout your home.

Related: Benefits of installing thermostatic radiator valves

17. Use Oven Heat

After baking, leave the oven door open to allow residual heat to warm your kitchen. This is an easy way to make use of already-generated heat. However, never use the oven as a primary heat source, as this can be unsafe.

18. Manage Electronics

Unplug devices like computers, chargers, and gaming consoles when not in use. These electronics generate heat and consume standby power, contributing to higher energy costs. Using power strips can make it easier to turn off multiple devices at once.

19. Install Door Sweeps

Adding door sweeps to exterior doors helps block drafts and keeps warm air inside. These are inexpensive, easy to install, and can significantly improve indoor warmth. Reducing drafts prevents your heating system from overworking.

20. Turn Off Exhaust Fans

Bathroom and kitchen exhaust fans pull warm air out of your home. Turn them off when not needed to prevent unnecessary heat loss. Limiting exhaust fan use helps maintain a stable indoor temperature.

21. Harness Sunlight

Take advantage of natural sunlight by opening curtains during the day to let in warmth. Close them at night to retain heat and block cold drafts. Thermal curtains add extra insulation for better heat retention.

22. Wash Clothes in Cold Water

Using cold water instead of hot for laundry reduces energy consumption. Modern detergents clean just as effectively in cold water, helping lower heating costs without compromising cleanliness.

23. Adjust Thermostat Near Fireplaces

If using a fireplace, lower the thermostat to avoid overheating the rest of the home. Fireplaces generate enough heat to warm nearby spaces, reducing the need for central heating.

24. Use Outdoor Energy in Summer

Take advantage of outdoor cooking, drying clothes outside, and spending time outdoors to reduce indoor energy use. Small changes in daily habits can add up to noticeable savings.

25. Upgrade Your Heating System 

If your heating system is over 15 years old, it’s likely far less efficient than modern options. Upgrading to a new system can lead to significant savings on your energy bills.

There are several types of heating systems to consider, including furnaces, boilers, heat pumps, and radiant heating. Each has its own advantages, but one of the most efficient and versatile choices today is a heat pump.

Heat pumps provide both heating and cooling, ensuring year-round comfort, and they’re cost-effective without breaking the bank. Whether you’re replacing an outdated system or exploring new options, upgrading your heating system is a smart investment for long-term savings and comfort.

Remember, there are grants, rebates, and financial incentives you can access. Air to air heat pumps deliver efficient heating and cooling, no matter where you live.

26. Insulate Your Home

 If you have an attic space that is insulated but a long time ago, then it’s worth checking to see if it is still up to standard. You can save money by upgrading to the latest specifications. It is usually a DIY project. There are often grants available for this upgrade.

27. Install Motion Sensors on Your Outdoor Lighting

Don’t have them running all the time. Systems typically cost very little and are easy to install. They will save you money.

28. Consider Fitting Double-paned Glass

 Your windows typically account for around 15% of your home’s wall area, so they have a significant effect on your power costs. New windows could make sense.

29. Insulate Your Basement

Many of us have a basement, which is often overlooked for insulation. It will get very cold in winter, and if it’s unheated or uninsulated, you have a freezer under your house. It may be a project you should consider, and if you have the skills, do the work yourself, but it’s a project that could pay dividends in the future.

Pro Tip: Explore grants, rebates, and financial incentives available for energy-efficient upgrades. Consult local or state energy agencies to identify programs tailored to your needs. Dedicate time to research eligibility criteria and application processes—many opportunities go unused due to lack of awareness.

By leveraging these resources, you can offset upfront costs and maximize long-term savings. A little effort today could secure significant benefits tomorrow.

Related: Are hydronic baseboard heating systems worth the money?

Conclusion

In the above text, we’ve explored 29 ways to reduce heating costs and save. From simple steps like adjusting the thermostat, sealing air leaks, and improving insulation, to more advanced measures such as upgrading to a high-efficiency furnace or boiler, these strategies can significantly lower your energy bills.

Adding a programmable or smart thermostat and investing in energy-efficient windows and doors also contribute to long-term savings. Together, these tips create a more energy-efficient home while keeping your heating costs under control.

Additionally, exploring alternative heating sources like air-to-air heat pumps, geothermal systems, or solar energy can provide further cost savings and reduce the carbon footprint of your home. By taking a few proactive steps, you can improve the energy efficiency of your home, reduce heating costs, and enjoy a cozier, more sustainable living space.