Harv's Corner 11/24/2025

Harv's Corner

​MANAGING HEATING COSTS
Story by ANN CARRNS • Illustration by TILL LAUER • The New York Times

Home heating costs are expected to outpace inflation this winter. Making matters worse for people who have trouble paying their utility bills, the government shutdown delayed federal assistance to them.

"Energy prices are going up, and it's probably going to be a cold winter," said Steve Baden, executive director of the Residential Energy Services Network, a nonprofit that promotes energy efficiency.

Home heating costs are estimated to rise nearly 8% over last winter on average, according to a forecast from the National Energy Assistance Directors Association, which assists states in securing federal funds to help low-income people pay their heating and cooling bills. The average heating bill for the season — October through March — is expected to rise to $976 from $907 last year, the association predicted.
Costs for heating with electricity, however, are expected to increase around 10%, the association's forecast said. That's mainly because of maintenance and upgrades to the energy transmission grid as well as the rising cost of natural gas, which powers much electricity generation, and the boom in large, energy-hungry data centers built to support artificial intelligence, the association said.

Some parts of the country, including the Midwest and the South, could see double-digit cost increases. The Northeast, however, where heating oil and propane are more common, may see a more muted increase — just under 3% — as costs for those fuels are expected to ease.

Higher winter utility costs are increasingly a worry for consumers, many of whom are also coping with higher food prices. The costs became an issue, for instance, in the recent governor's race in New Jersey.

The distribution of federal aid to states to help low-income people pay for heating typically occurs in late October but was delayed because of the government shutdown, said Mark Wolfe, executive director of the energy assistance association. Now that the government is reopening, he said, "my expectation is that funds will be released," although the timing remains uncertain. "Winter is starting," he added.

Here are some options to consider to manage energy costs and make your home more comfortable as temperatures drop.

Can I still get federal tax credits for energy updates to my home?

Yes, though you'll have to act fast. Two federal tax credits available for improvements to a home's energy efficiency expire after Dec. 31. The Bidenera credits were originally set to continue well into the 2030s, but the Trump administration sped up their expiration via the One Big Beautiful Bill Act.

The energy-efficient home improvement credit provides savings of 30%, up to $3,200, for eligible items, including home energy audits, added insulation, replacement doors and windows, and more efficient water heaters, furnaces and boilers. In addition to the aggregate cap, limits on individual improvements apply. For instance, doors are eligible for a maximum credit of $250 per door, up to $500 total.

Another credit, the Residential Clean Energy Tax Credit, provides a credit of 30% of the total cost for installing renewable energy equipment like solar panels and solar-powered water heaters.

The tax credits aren't "refundable," meaning that they can reduce your tax bill to as low as zero, but you won't get any extra back as a refund.
The updates generally have to be installed by the end of the year to qualify for a credit on your 2025 taxes, said Amanda Hatherly, CEO of the Building Performance Institute, a group that develops standards for the energy efficiency and weatherization industry.

Do states and utilities offer financial incentives for home energy improvements?

Many do, but the programs aren't always heavily promoted, Wolfe of the energy assistance association said. So check with your utility or state energy office to see what's available in your area.
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Can I shop around for cheaper energy?
Yes, Wolfe said. If you use heating oil or propane, it can pay to contact different providers and compare pricing. Some dealers may offer contracts that set a fixed price for the season, which can save money if prices rise (but you typically won't benefit if prices fall).

Many utilities let customers buy gas and electricity through an independent provider, but be careful, Wolfe said. Many offers come with "teaser" rates that rise after an introductory period and can carry high cancellation fees. But if you can stay on top of the bill, he said, you may save 5% to 10%.

What simple steps can I take to lower heating bills?
Do-it-yourself fixes that can help shave your energy costs include closing the damper on your fireplace when it's not in use. That can help save 10% to 20% on your energy bill, Wolfe said, depending on the type of fuel you use and your home's location.

Adding insulation is a step that offers a fairly rapid payoff in states offering financial incentives, Wolfe said. Depending on the rate you pay for heat, a $2,500 installation can be paid back in energy savings in less than two years, assuming a 75% rebate of the cost.

An easy step is to set your thermostat at 65 to 68 degrees when you're home and awake and lower it several degrees at night or when you're away, said Lizzie Rubado, director of innovation and development at Energy Trust of Oregon, a nonprofit that promotes energy efficiency. A "smart" or programmable thermostat can make the changes so you don't have to remember to do it. "Your heating system is the single biggest energy user in the winter," she said.

If you have an older hot water heater, drain it to remove sediment that can accumulate at its base and makes the unit use more energy to warm the water, Baden advised. Put a bucket under the tap at the unit's base, he said, and drain water out until the bucket is about half full.

If you have a forced-air heating system, clogged filters in your furnace can force it to work harder, using more energy, so replace them every few months.

To pinpoint where cold air is seeping into your house, consider a home energy audit. A technician will conduct a "blower door" test to identify leaky areas. The cost is typically less than $200, Baden said, and some utilities cover the entire cost to encourage customers to conserve energy.

Taping and insulating duct systems properly can also prevent wasted heat. Baden recalled an audit that found that a duct in the attic had become disconnected, so warm air wasn't making it into the main house. The homeowner joked that he "was heating his Christmas decorations," Baden said.

To find qualified energy auditors, you can contact your utility or search by location on the Building Performance Institute's website.
What if I can't afford my heating bill?
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You can get help paying your heating bills from the Low Income Home Energy Assistance Program, known as LIHEAP, if your income and family size qualify. Funds are provided by the federal government and distributed by state agencies. The Energy Department offers a map showing contacts in each state.