Minneapolis vs. National Average: Are Your Energy Bills Too High for Heating & Cooling?

With energy costs always on the rise, homeowners may struggle to determine whether or not their energy bills are too high. This is especially true for homeowners in Minneapolis. Not only do residents pay a rate that is higher than the national average for electricity, but they also face certain environmental factors like extreme winters and older architecture that can drive up energy costs.

In this article, the home service experts at Dean’s Home Services discuss the average energy costs in Minneapolis along with tips to lower these bills without sacrificing your comfort.

How Energy Costs in Minneapolis Compare to the National Average

According to the U.S. Bureau of Labor Statistics, “The 20.2 cents per kWh that Minneapolis households paid for electricity in June 2024 was 13.5 percent higher than the nationwide average cost of 17.8 cents per kWh. Last June, electricity costs in Minneapolis were 20.0 cents per kWh, compared to the national average of 17.0 cents.”

This means that homeowners in the area are already paying more than the average American for their electricity, making it even more important for Minneapolis homeowners to ensure their home operates efficiently to avoid serious bills. 

Why Your Energy Bills May Be Higher

There are many reasons that Minneapolis homeowners may be experiencing higher-than-average electrical bills. This includes:

• Extreme weather: While summer highs are in the mid-80s, winter lows can be well below freezing, with an average low of 7 degrees. This means homeowners are utilizing their heating and cooling regularly, which can lead to higher heating and cooling bills. 
• Old HVAC systems: Homeowners who have not updated their HVAC system and instead are using outdated heating or cooling may be using systems with poor energy efficiency.
• Poor insulation: The median age of Minneapolis homes is 71 years old. These older properties don’t have sufficient energy to fight against thermal transfer. In addition, old windows and doors can be drafty and lead to further thermal loss.
• Basements: Many homes in the area have basements that operate as additional living space within the home. This is extra square footage that must then be heated or cooled throughout the year.

How To Lower Your Energy Costs

While Minneapolis homeowners can do little to impact the cost of electricity, they can follow these simple tips to improve their home’s energy efficiency and lower their energy costs. This includes:

• Routine HVAC maintenance: With regular heating and cooling maintenance, homeowners can ensure that their HVAC is operating at peak efficiency. These tune-ups often include minor proactive repairs to reduce wear and tear and your risk for future breakdowns.
• HVAC upgrades: If your HVAC system is more than 10 years old, it may be time for an upgrade. With an ENERGY STAR-rated system, you’ll benefit from technology that significantly improves energy efficiency and you may even be eligible for tax credits to offset the cost of installation.
• Install a smart thermostat: A smart thermostat not only improves your energy efficiency but is also an excellent tool for monitoring energy use. These sophisticated systems can reduce wasted HVAC use and give you a clearer picture of how your energy is being used.
• Add insulation: Update the insulation in your home to ensure you’re protected from thermal loss. Old insulation can compress over time and become less effective, making the addition of new insulation very impactful on your energy bills.

Choose Dean’s for Energy-Efficient Home Services

At Dean’s Home Services, we’re the go-to expert in HVAC, plumbing, and electric solutions with a commitment to helping Twin Cities residents achieve their optimal energy efficiency and lower their utility bills. With nearly 30 years in the industry, our team of licensed and insured experts is here with same-day service for all brands of equipment to ensure your home is always comfortable and efficient. Plus, with free estimates on replacements, we can help you invest wisely in your home comfort!

Improve your Minneapolis home’s energy efficiency today by calling Dean’s Home Services to schedule home services with our team.