Reducing Energy Costs During The Holidays

Reducing energy costs during the holidays is a top priority for Mid-Atlantic homeowners, especially as the season brings a mix of cold weather, increased energy use, and inevitable seasonal utility rate hikes.

According to the U.S. Energy Information Administration, residential electricity consumption spikes by 10–15% in December as families heat larger spaces, cook more, and light their homes for weeks on end.

While most advice focuses on minor habit changes, the most effective way to save money and conserve energy is by combining smart home efficiency with solar power.

Reducing Energy Costs During the Holidays Starts with Understanding Your Bill

In Pennsylvania and New Jersey, energy consumption typically peaks in December. Local utilities like PECO and PPL often implement winter "Price to Compare" increases right when you start hanging holiday lights.

Before you can cut costs, you need to know where the money is going. During the holiday season, three categories dominate your energy bill: heating and cooling, appliances and cooking, and decorative lighting. Each one can be meaningfully reduced without sacrificing comfort or holiday spirit.

Let’s face it, everything about the holidays encourages spending as well as giving. Spending money on food, gifts, shopping, decorations, and travel can really add up. One extra expense that is often overlooked is your energy bill.

Having extra family members over for the holidays and powering Christmas lights during the weeks of the holiday season can inflate electricity and gas bills. Here are some quick tips to reduce your holiday energy costs:

Use LED Lights

LED lights last longer and consume 70% less energy than conventional light bulbs found on Christmas light strands. In addition to being more energy efficient, LED lights are also sturdier and more resistant to breakage. Who knew such a simple change could be so beneficial in lowering holiday energy costs?

When you run LEDs for an extended period, the draw on your system is minimal. In fact, a modest solar array can completely offset the cost of an entire outdoor light display, effectively saving energy and bringing your holiday lighting cost to $0.

Use a Light Timer

You don’t have to keep your Christmas lights running all day and all night to partake in the holiday spirit. Use a light timer to strategically turn your lights on and off during certain times. This will allow you to control your costs.

Learn How Much Solar Could Save You This Holiday Season!

Case Study: Energy-Proofing for the Holidays (Avondale, PA)

The Challenge: Holiday traditions—like elaborate light displays, extra cooking, and heating for guests—often lead to a "bill shock" in January. TerraSol’s holiday guide suggests small fixes like LEDs, but the Avondale Project offers a total solution.

The Solution: We installed a 31-panel system (420W each) on a high-efficiency new construction home in Chester County. By managing the complex permitting and utility approvals, our team ensured the home was ready to generate its own power before the winter peak.

The Results:

• Annual Production: 15,624 kWh/year (more than enough to offset heavy holiday usage).
• Carbon Footprint: 24,373 lbs of CO2 saved annually.
• The “Holiday Benefit”: While neighbors adjust timers and thermostats to save pennies, this homeowner enjoys a net-zero energy impact, allowing them to power holiday lights and hosting needs for free.

Bottom Line: Small habits save cents, but the Avondale project proves that a turnkey solar solution from TerraSol saves thousands while making the holidays stress-free.

Read article: How Solar Works When It's Not Sunny

Other Expert Energy Saving Tips to Lower Your Energy Costs During the Holidays

The most effective ways to reduce energy costs during the holiday season are switching from traditional incandescent bulbs to LED holiday lights (which use up to 90% less energy), setting your smart thermostat to automatically lower the temperature overnight and when guests are not present, lowering your water heater temperature to 120°F, sealing air leaks around exterior doors and windows to prevent heat loss, and cooking multiple dishes at once to reduce oven energy use.

For homeowners in Pennsylvania, New Jersey, and Delaware looking to eliminate holiday bill spikes permanently, installing solar panels offsets the extra December energy consumption entirely.

Use Power Strips

Keeping all of your holiday decorations plugged in all day and night will continue to draw small amounts of electricity from your home, even if your decorations aren’t actually on. Plug all of your decorations into a power strip to easily turn that electric source on and off, thus lowering your holiday energy costs.

Prepare your windows for winter by installing storm windows.

Storm windows can yield significant energy savings over time. They can cut the loss of heat through the windows by 25% to 50%.

Use Energy Star-rated rechargeable batteries and electronics.

Consider using rechargeable batteries for your electronics and presents. Also, buy Energy Star electronics for loved ones whenever you can. Purchasing an Energy Star computer can save an additional 30% to 65% more energy than a regular computer.

Check out this electricity calculator for Christmas lights to estimate your electricity costs for the holiday season.

Read article: How to Start Taking Advantage of the Solar Energy Tax Credit

Empty your car every time you make a trip during the holidays

More than likely, you’re driving way more frequently during the holidays, which can mean additional fuel costs. Make sure to completely empty your car every time you make a trip. An extra 100 pounds of presents could cost you nearly 10 cents a gallon in gas.

Cut the holiday season short this year and display decorations a few days or a week less than you have in the past.

Heating & Staying Warm: Smart Tips That Don't Sacrifice Comfort

Heating accounts for nearly half of winter energy use in most homes. The goal is to stay warm without letting your furnace or heat pump work harder than it needs to. These strategies make a measurable difference.

Seal Cold Air Out and Keep Warmth In

One of the most overlooked ways cold air sneaks into a home is through gaps around windows, doors, and electrical outlets. Draft snakes, weatherstripping, and outlet foam gaskets are inexpensive fixes that reduce the work your heating system has to do to maintain temperature. Cold air infiltration can account for 10–20% of heat loss in older homes — a significant and fixable source of waste.

Layer Up and Create Warmth Naturally

Encouraging guests to wear layered clothing and keeping throws and blankets accessible throughout the house lets you set the thermostat 2–3 degrees lower without anyone feeling the chill.

This simple behavioral shift can save 3–5% on heating costs per degree of reduction. Think of it as building warmth from the inside out — before you ask your HVAC system to do the heavy lifting. You can create

Kitchen & Appliance Efficiency: Holiday Cooking Without the Energy Hangover

The holidays mean more cooking, more dishes, and more appliance use than any other time of year. A few smart kitchen habits can significantly reduce your energy footprint without affecting a single recipe.

Keep the Oven Door Closed

Every time you open the oven door to check on a dish, the internal temperature can drop by 25–50°F, forcing the appliance to reheat and consuming extra energy.

Use the oven window and interior light instead. Keeping the oven door closed throughout the cooking cycle maintains consistent heat, reduces energy use, and actually produces better results for most baked goods and roasts.

Use the Microwave When You Can

A microwave uses 50–80% less energy than a conventional oven for reheating and cooking small portions. During the holidays, when leftovers are plentiful, leaning on the microwave rather than firing up the full oven for every reheat can yield meaningful savings over the season.

A microwave is also faster, which means less time standing in the kitchen and more time with your guests.

Read article: Renewable Energy is the Future

Run Full Loads in the Dishwasher and Washer

Holiday hosting spikes utility use, but efficiency is simple:

• Maximize Every Load: Always run full dishwashers and washing machines. Since these appliances use the same amount of energy regardless of volume, partial loads are essentially wasted money.
• Switch to Cold: Use cold water for laundry to cut energy use by up to 90%. Modern detergents are designed for it, and the lower temperature helps your holiday linens and clothing last longer.

Keep the Refrigerator Running Efficiently

Refrigerators are a major household energy draw, especially during the holidays. Improve efficiency with these steps:

• Limit Openings: Every time the door opens, cold air escapes, and the motor must work harder. Organize your refrigerator so guests can find items quickly and close the door promptly.
• Cool Leftovers First: Let food reach room temperature before storing. Placing warm loads inside forces the unit to use significantly more energy to cool the interior back down.

2025 Holiday Season Utility Rate Update: PA, NJ & DE

To protect your household budget, you must first identify where heat escapes. Old, drafty windows allow cold air to seep into your living spaces, forcing your heater to work harder than necessary.

By sealing these gaps, you can keep that cold air outside where it belongs. Furthermore, every household can benefit from a programmable thermostat to manage temperatures while you are away at holiday parties.

Setting a programmable thermostat just five degrees lower when you leave the room can lead to significant savings on your utility account. Understanding when rates are highest helps you shift energy use strategically.

Rate data sourced from PA Public Utility Commission press release, November 24, 2025. Always verify current rates at your utility’s official website.

Ready to Eliminate Holiday Bill Spikes Permanently?

Every tip in this guide helps manage your holiday energy costs. But the only solution that eliminates the underlying problem — rising utility rates applied to increased December consumption — is generating your own electricity.

TerraSol Energies has been helping homeowners across Pennsylvania, New Jersey, and Delaware go solar since 2009.

Request a custom solar proposal. TerraSol Energies is a leader in efficient energy lighting. If you need to discuss options for efficiently using energy in your home this holiday season, contact us today for a free site consultation.

Frequently Asked Questions

How can I effectively start reducing energy costs during the holidays?

The fastest way to reduce energy is to switch from traditional bulbs to LEDs, seal air leaks to prevent heat loss, and install a smart thermostat to manage your home's temperature more accurately.

How do solar panels help with holiday energy usage?

Solar panels allow you to produce your own electricity, protecting you from the high winter rates charged by utilities like PECO. Even with shorter days, the efficiency of modern panels allows you to save money on your energy use throughout December.

Will my energy consumption stay high if I have multiple devices plugged in?

Yes, having multiple devices and appliances running for an extended period will increase your energy use. However, using smart power strips and high-efficiency appliances can help maintain lower costs.

How do I lower my December electric bill?

To lower utility bills, switch to LED holiday lights, use a smart thermostat, and seal air leaks to prevent heat loss. For long-term results, solar energy is the most effective way to reduce energy costs.

What temperature should I set my water heater during the holidays?

Set your water heater to 120°F. This temperature is hot enough for comfortable showers and effective dishwashing while eliminating the excess standby heat loss associated with the factory-default setting of 140°F. Lowering the water heater temperature to 120°F reduces water heating costs by approximately 10%, per the U.S. Department of Energy — a saving that compounds over an extended holiday period with guests in the home.