How to Save Money on Energy Bills in 2025

Save Money on Energy Bills in 2025

Save money on energy bills in 2025 by making smart changes to your energy use and staying informed about the Ofgem energy price cap. In this article, we’ll show you how to cut costs, reduce waste. If you’re tired of high bills and, as a result, want to take control of your energy use, then this guide is exactly what you need. It not only explains where your money is going but also shows you how to start saving step by step.

Understanding the Ofgem Energy Price Cap

The Ofgem energy price cap limits what suppliers can charge per unit of gas and electricity. From 1 July 2025, the cap will be set at £1,720 per year for a typical household paying by Direct Debit. That’s around 7% lower than the previous quarter; in other words, there’s been a noticeable drop. As a result, it’s important to review what may have caused the decline and what actions can help improve performance moving forward. The cap reflects wholesale energy prices and ensures fair pricing for customers not on fixed deals.

The price cap includes:

• Unit rates for electricity and gas
• Daily standing charges
• VAT

It does not cap your total bill; instead, your overall cost still depends on how much energy you use. Therefore, reducing your energy consumption remains the most effective way to lower what you pay.

Why Energy Bills Are Still a Concern

Although the price cap is falling, energy bills are still high compared to pre 2021 levels. Meanwhile, many households continue to face financial pressure from inflation and rising costs in other areas. This is why, now more than ever, saving energy plays a crucial role in managing household expenses.

High bills are often caused by:

• Inefficient appliances
• Poor insulation
• Lack of energy awareness
• Overheating or overcooling

Top 10 Practical Ways to Save Money on Energy Bills

1. Turn Off Appliances at the Plug
   Standby mode still uses power. Turning off devices fully could save you up to £30 per year.
2. Switch to LED Lighting
   LEDs use less energy and last longer. Replacing traditional bulbs can reduce lighting costs by around £65 per year.
3. Lower Your Thermostat
   Reducing your thermostat by just 1°C could save around £80 annually.
4. Use a Smart Thermostat
   Smart thermostats learn your habits and adjust heating automatically. They help reduce waste and can save up to £75 per year.
5. Improve Your Insulation
   Loft and wall insulation keeps heat in, cutting heating costs. Well insulated homes use up to 40% less energy.
6. Upgrade Old Appliances
   Newer models are more efficient. Replacing an old fridge freezer could save around £60 a year.
7. Use Draught Excluders
   Blocking gaps around windows and doors stops heat escaping and makes rooms feel warmer.
8. Limit Hot Water Use
   Install efficient showerheads and reduce shower time. Heating water is one of the biggest energy costs.
9. Run Full Loads
   Wait until your dishwasher or washing machine is full to save water and energy.
10. Use a Smart Meter
    Smart meters track usage in real time and help identify areas to cut back.

Energy Efficiency Improvements That Pay Off

Investing in home upgrades can yield big savings over time. At Vital Heating Solutions, we offer a wide range of bespoke services designed to improve energy efficiency and lower running costs for both domestic and commercial properties. Whether you’re upgrading your heating system or planning a full retrofit, our solutions are built around your needs to deliver long term savings. Consider:

• Solar Panels: Generate your own electricity and sell back surplus to the grid.
• Heat Pumps: Highly efficient for heating and cooling, ideal for lowering carbon emissions.
• Boiler Upgrades: Replace old, inefficient systems with high efficiency condensing boilers.
• Building Management Systems (BMS): Intelligent control systems that monitor and optimise heating, ventilation, and energy use.
• Underfloor Heating Systems: Energy efficient and space saving heating for modern builds and renovations.
• Radiator Upgrades and Smart Controls: Maximise heating performance and flexibility with thermostatic and smart control systems.
• Commercial Plant Room Upgrades: High efficiency solutions designed to support large scale energy requirements.
• Zoned Heating Solutions: Customisable heating control for multi room or multi occupancy buildings.
• Double or Triple Glazing: Reduces heat loss and noise, improving comfort and energy savings.

Managing Bills on a Budget

If you’re finding it difficult to manage, don’t hesitate to speak to your supplier. In fact, they are required to offer:

• Payment plans
• Prepayment meters
• Advice on reducing usage

Additionally, Citizens Advice and other charities provide free, confidential support to help you navigate your options.

Switching Energy Suppliers in 2025

Check if you can save by switching. While the market is still recovering, some suppliers are now offering fixed deals that fall below the current price cap. Therefore, it could be a good time to compare your options. In fact, switching now might help you lock in a better rate before prices change again.Compare offers using:

• Uswitch
• MoneySuperMarket
• Which?

Make sure the deal includes unit rates, standing charges, and exit fees.