Why Your AC Is Wrecking Your Summer Budget — and 5 Ways To Lower Your Bills
For many Americans, especially if you have air conditioning (AC), summer brings startling sticker shock with your electric bill.
Even households that haven’t dramatically changed their cooling habits are finding themselves paying hundreds more to stay comfortable.
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MoneyLion spoke with heating, ventilation and air conditioning (HVAC) experts to explain why AC is wrecking your summer budget and what to do about it.
Rising Electricity Prices
Yes, electricity is undeniably more expensive, according to Rick Hoskins, CEO and HVAC expert at FilterKing.
He explained that over the past five years, the average price of electricity per kWh has increased nearly 40%.
“Air conditioning is one of the biggest consumers of energy and it relies on electricity, so homeowners have started to see much higher utility bills in the summer,” he said.
Add to that the fact that older systems lose efficiency, according to Michael Klobe, third-generation HVAC specialist and founder of HVAC Mind and after ten years you could be running at a 20% or more efficiency loss. Even just a small leak in refrigerant can cost you as these costs have also gone up significantly, he said.
The Most Expensive AC Habits and ‘Hacks’
What surprises many homeowners is that some of the biggest cooling-cost problems are self-inflicted. "The biggest mistake is carelessness. Many people leave their air conditioning on full blast, even when they’re away at work during the day,” Hoskins said.
Additionally, it’s not as easy to hack your cooling as you think. Klobe explained that cranking the thermostat down to 68 thinking will not cool your house faster.
“Your system cools at the same rate no matter what. You're just making it run for hours longer than necessary,” Klobe added.
Another myth is that closing off supply vents in unused areas of the home will save you money. Ryan Osterkamp, owner at Quality Comfort Home Services, explained that myth comes “from the idea that you are shrinking the amount of space your AC needs to cool, but your AC is designed to push a specific volume of air based on the square footage of your entire home.”
Lastly, turning your thermostat fan setting to ‘on’ instead of ‘auto’ will just make you spend more in energy costs “without any real benefits,” Osterkamp said.
Aging and Poorly Maintained HVAC Systems
Older systems run less efficiently, as do those that aren’t properly maintained.
“The EPA estimates that insulation and air sealing services can save up to 15% on annual heating and cooling costs,” Hoskins explained.
He added that when HVAC filters haven’t been changed frequently, “the unit has to work harder to provide the same level of comfort, which increases electricity costs.”
Klobe said he has seen monthly bills drop as much as $50 “just from changing a filter and cleaning the condenser coil.”
Poor insulation can also add 20% to 30% to cooling costs “because you're essentially trying to cool a house that's absorbing heat through the ceiling all day,” Klobe said.
Depending on how high your electricity bills are and how old your system, it may be worth the upfront costs to replace an aging HVAC unit or at minimum change filters and upgrade insulation.
5 Low-Cost Fixes
The best moves to reduce your costs are not that complicated, the experts offered.
Get a smart thermostat and keeping the temperature low but not freezing, around 75 in summer.
Add new seals to windows and doors to prevent cooling loss (kits are typically less than $20).
Open your windows to let in cool air.
Put up blackout curtains on south and west-facing windows.
Use fans in occupied rooms.
“The best way to reduce cooling costs is really to use the air conditioning less,” Hoskins added.
To help Americans navigate the added cost of summer, MoneyLion is giving away $1,000 every day through July 4. Enter the Summer Break Giveaway here (No pur. nec. Ends 7/4/26. See official rules at mlion.info/summerbreakofficialrules)
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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