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Understanding HVAC Energy Consumption and How to Save Money

As summer approaches and air conditioning systems start running longer and harder, many homeowners brace themselves for the inevitable spike in utility bills. Cooling your home during the hottest months of the year is a significant energy expense – often accounting for 40-50% of your monthly electricity costs. 

But understanding how your AC consumes energy and applying some simple, cost-effective strategies can help you stay comfortable while keeping those bills under control. Here’s what you need to know about energy consumption, how to interpret your utility bill, and the best ways to save money this cooling season.

What Affects Your AC’s Energy Consumption?

Your air conditioner’s energy usage is influenced by several key factors:

  • Home size and insulation – Larger homes naturally require more energy to cool, especially if they have high ceilings or poor insulation. Older homes often lack the proper air sealing or insulation needed to keep cool air indoors and hot air out.
  • AC system age and efficiency – An air conditioner over 10-15 years old may be using significantly more energy than today’s models. If your system has a low SEER (Seasonal Energy Efficiency Ratio) rating, it consumes more energy to deliver the same level of cooling.
  • Thermostat settings – Setting your thermostat too low, especially under 70°F, can drastically increase energy usage. Each degree you lower the temperature below 78°F can increase energy consumption by about 6-8%.
  • Air leaks and ductwork condition – Leaky windows, poorly sealed doors, and damaged ductwork can allow cool air to escape. In fact, leaky ducts can waste up to 30% of your system’s cooling power.
  • Usage habits and lifestyle – If your AC is running constantly, even when no one is home, you’re wasting energy. Homes without programmable or smart thermostats often run their systems longer than necessary.

Tips to Improve AC Efficiency and Lower Your Bills

Now that you understand what drives up energy usage, here’s how to keep it in check:

  • Set smart thermostat temperatures – Set your thermostat to 78°F when you’re home, and raise it to 85°F when away. Use a programmable thermostat or a smart model, such as Nest or Ecobee, to automate settings and reduce waste.
  • Change your air filter regularly – A clogged filter restricts airflow, causing your system to work harder. Replace your filter every 1–3 months, especially during peak usage.
  • Schedule seasonal maintenance – A professional AC tune-up ensures your system is clean, calibrated, and operating efficiently. Technicians can identify problems before they become expensive repairs or energy drains.
  • Use fans and window treatments – Ceiling fans help distribute cool air more evenly, allowing you to raise the thermostat by a few degrees without sacrificing comfort. Close blinds or curtains during the day to reduce heat gain from sunlight.

Understanding Your Utility Bill

To track your progress and savings, it helps to understand what your energy bill is telling you. Most electric bills include:

  • Kilowatt-hours (kWh) Used: The amount of electricity you consumed.
  • Rate per kWh: What your utility company charges per unit of electricity.
  • Peak Demand Charges: Higher rates during times of high usage (usually summer afternoons).

Compare your current usage to the same month last year. If usage has increased without a lifestyle change, your AC system may be running inefficiently – or you may have air leaks or insulation issues.

Making families happy on the Space Coast since 1975. Schedule an appointment with Complete Air & Heat, Inc.

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