This winter’s heating bills could hit harder than expected. Americans stand to pay an average of $976 to stay warm this season. That’s a 7.6% increase and roughly $69 more than last winter, according to a report from the National Energy Assistance Directors Association (NEADA).
And depending on how you heat your home, the increase might be even more.
Natural gas users face paying 8.4% more on their heating bills this winter, with natural gas prices surging 13.8% from last year and outpacing the 2.9% inflation rate.
Electric heat users have it worse with a projected 10.2% increase. The Bureau of Labor Statistics reports electricity prices jumped 6.2% in August compared to last year, and the U.S. Energy Information Administration warns costs could climb up to 18% over the next few years.
But there’s good news for the roughly 10% of households using heating oil or propane, who might actually save with projected decreases of 4% and 5%, respectively.
Here are a few factors causing heating costs to rise:
- An aging power grid that requires constant maintenance and upgrades
- Soaring electricity demand from data centers
- Volatile natural gas prices
Dozens of gas and electric companies have already raised rates or proposed increases this year, according to the Center for American Progress. That comes on the tail of summer, when the average household electricity bills reached their highest in at least 12 years, at $776.
The consequence, NEADA says, is “staggering household utility debt,” as the number of energy bill delinquencies jumped 31% between Dec. 2023 and June 2025, reaching $23 billion. This winter’s heating bills could strain many households even further.
There are plenty of ways you can lower your heating costs, however. Here are five strategies.
1. Schedule a free energy assessment
Many utilities offer complimentary home evaluations that pinpoint where you’re losing heat. These assessments often include discounts on insulation and weatherization improvements. Contact your utility company before cold weather hits to see what improvements you can make.
2. Weatherize your home yourself
Basic weatherization doesn’t always require professional help. Install weatherstripping around doors and windows, seal gaps near pipes and electrical outlets and add door sweeps to exterior doors. These simple fixes can significantly reduce heat loss for minimal cost.
3. Optimize your thermostat settings
Each degree matters for heating expenses. Lowering your thermostat just a few degrees saves real money. Program it for cooler temperatures while sleeping or away. If you lack a programmable thermostat, consider investing in one. Many utility companies provide rebates to offset the purchase price.
4. Eliminate phantom power draws
Appliances and electronics can consume electricity even when turned off. Unplug devices when they’re not in use or plug into power strips with on/off switches to reduce your overall electricity usage.
5. Apply for assistance programs
The Low Income Home Energy Assistance Program (LIHEAP) helps eligible households manage energy costs. Income limits vary by state and household size, so don’t assume you won’t qualify. Learn more about your state’s available assistance through the LIHEAP website.
Your smartest move now is to implement cost-saving measures while temperatures remain mild. Every dollar saved on heating is one available for other necessities, or maybe something enjoyable when spring returns.
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