How to reduce your electricity bill?

How to reduce your electricity bill?

Households are confronted with rising electricity bills. The higher bills are due to;

  1. Higher consumption of units
  2. Rising unit rates charged by the distributor(s)

At individual level, we can not do anything about the unit rates being charged by the distributor(s), which is beyond our control. But we can analyse on the consumption and take steps to reduce the bill amount. The first step is analysis on the monthly consumption pattern and comparing the consumption to same months of previous years. It is natural that the consumption will be higher in the summer months of April and May. In case of very high bills in any month, it should be taken up with the distributor for any mistake in billing. The next  step is to educate the family members about the need for switching off lights/fans/AC/geysers etc when not in use.The next one is to have a look at the appliances. This is because the types of bulbs we use. You must know the types of bulbs used and their efficiency.

On this we need to understand  two terms i.e  wattage and lumens. Wattage is a measure of electrical power a light bulb consumes. Lumen is a measure of brightness. A higher wattage doesn’t mean higher lumens: but higher the lumens per watt, the brighter are the bulb.

Types of Bulbs

Incandescent light: These are the most commonly used bulbs.These create light by heating of filament and then glows white hot. They produce only between 10 and 30 lumen per watt.

Fluorescent tube: These are basically white tube lights in which gas is filled, which produce ultra violet (UV) light. When the phosphorous coating inside the tube comes in contact with UV light it glows. This type of tube or bulb can produce 50-100 lumens per watt.

Compact florescent lights (CFL): These use gas, mercury particles and phosphor to create light. Most CFLs have a charge up time and also need more watts to light up. They produce 40-70 lumens per watt.

Light emitting diode (LED): These types of lights and tubes use diodes to produce light making them the most energy efficient lighting option available. They produce 40-80 lumens per watt. LED lights are usually the brightest and come in many colours.

A correct lighting solution should consume minimum power and provide better light.

                                                                        Economics of lights

Types of lights


(60 watts /hour)


(36 watts/hour)


(15 watts/hour)


(10 watts/hour)






Units(kwh) consumed in a year (6 hrs per day)





Life span(hours)





Cost per bulb





Number of bulbs needed for 50000 hrs





Cost of electricity consumed a year (Rs5.50/unit)

Rs 722.70

Rs 433.62

Rs 180.40

Rs 120.45

Total cost of electricity and bulbs for 50000hrs hrs

Rs 28,000

Rs 10,155

Rs 7,325

Rs 5.900

How to plan?

Don’t buy any type of bulb because it is cheap. It consumes more electricity. LED  last longer but cost much more, therefore if you plan to stay in the house for long time ( at least 8- 10 years) use LED lights. If you plan to rent the house or sell it soon or not to stay for long time, then opt for CFL or fluorescent tubes or bulbs.

Further you should analyse on how much light you need for a particular area and then decide on the bulb. Some suggestions are; 

Kitchen: CFL or fluorescent bulbs                   :       Living room: LED

Study room: CFL or fluorescent bulbs            :     Store room: CFL or fluorescent bulbs

Society common areas: LED

So do not ignore the electricity bill which can give surprises and can become a burden on your monthly expenses.

Source: Mint Money 9th July 2014 page 20


Last modified on Saturday, 19 July 2014 07:36

Prakash Praharaj

Shri Prakash Praharaj has a passion for excellence. He has been awarded two gold medals for securing top positions both in Graduation and Post Graduation in Commerce. He is an MBA with specialization in Finance and marketing. He has been awarded Diploma in Treasury, Investment and Risk Management besides CAIIB from the Indian Institute of Bankers. He is a Certified Financial Planner from the Financial Planning standards Board, India (FPSB), affiliated to FPSB, Denver, USA and Certified Personal Financial Adviser from NISM. He is also a SEBI registered Investment Adviser vide Reg. no. INA 000000045 dated 2nd August 2013.His book "Your Every day guide to Personal Finance and Insurance" has been published by CNBC TV 18 in August 2015.


  • Sujata Aniruddha Sapkal

    posted by Sujata Aniruddha Sapkal

    Monday, 06 July 2015 09:33

    Electricity bill is one of the major component of the variable household expenses, one should follow given steps to curb it.


    posted by

    Friday, 22 May 2015 12:55

    Article writing is also a fun, if you be familiar with afterward you can write if
    not it is complex to write.

  • sangeeta

    posted by sangeeta

    Friday, 25 July 2014 10:36

    Good article.

  • sanjukta

    posted by sanjukta

    Friday, 25 July 2014 10:34

    Very useful article


Leave a comment

Make sure you enter all the required information, indicated by an asterisk (*). HTML code is not allowed.

Subscribe your Email


Go to top