How to Save on Your Gas Bill in 2026: 15 Proven Ways to Cut Costs

The average New York household spends $1,100–$1,600 per year on natural gas for heating, hot water, and cooking. With gas prices staying elevated through 2026, even a 15–20% reduction saves $165–$320 annually — without sacrificing comfort.

The strategies below are ordered by effort required — starting with the free, zero-effort actions and working up to upgrades that involve some upfront cost but often qualify for federal tax credits or utility rebates.

These cost nothing and can be done today. Combined, they typically reduce heating gas usage by 8–15%.

1. Lower the thermostat by 7–10°F while sleeping or away
   The Department of Energy estimates this single change saves up to 10% per year on heating and cooling. An 8-hour setback from 70°F to 62°F saves approximately $100–$160 per year in New York. A programmable or smart thermostat automates this entirely.
2. Set your water heater to 120°F
   Most water heaters arrive set to 140°F — higher than needed for household use and a source of standby heat loss. Lowering to 120°F saves 4–22% on water heating costs with no noticeable change in hot water availability.
3. Seal drafts around doors and windows with weatherstripping
   Air sealing materials cost $5–$40 and reduce the volume of cold outside air your furnace must heat. Drafts around a typical doorframe can leak 3–5% of your home's heated air.
4. Close dampers on unused fireplaces
   An open fireplace damper is effectively a 48-square-inch hole in your ceiling. When not in use, a closed damper reduces your home's air leakage significantly — and an inflatable fireplace plug ("chimney balloon") reduces it further.
5. Use kitchen and bathroom exhaust fans sparingly in winter
   These fans exhaust heated air directly outside. In winter, run them for the minimum time needed and turn them off promptly. This is especially impactful in tight apartments.

These improvements involve a small purchase but pay back within one heating season.

1. Install a smart thermostat ($80–$150, rebates available)
   A smart thermostat automates setbacks based on your schedule and learns your preferences. Con Edison offers rebates up to $85 for smart thermostat installation. After claiming the rebate, Net cost is often $20–$65. Average gas heating savings: $130–$145 per year (EPA estimate).
2. Replace furnace filters every 1–3 months during heating season
   A clogged filter forces the furnace blower to work harder, increasing both gas and electricity use. A $6–$12 filter replacement every 1–3 months maintains peak efficiency.
3. Insulate your hot water pipes ($10–$50)
   Foam pipe insulation sleeves cost less than $1 per foot. Insulating the hot water pipes nearest your water heater reduces standby heat loss and delivers hot water to taps faster — reducing the water (and hot water energy) that goes down the drain while waiting.
4. Add an insulating water heater blanket ($20–$40)
   Older gas water heaters with R-values below 24 benefit from an insulating wrap, which can reduce standby heat loss by 25–45%. Modern Energy Star water heaters already have adequate insulation built in; this tip applies mainly to water heaters over 10 years old.
5. Install outlet and switch plate insulators on exterior walls ($5–$15)
   Electrical boxes on exterior walls are uninsulated holes in your thermal envelope. Foam gaskets installed behind cover plates cost $5 for a pack of 10 and take 20 minutes to install.

New York has unusually generous incentive stacks for home energy efficiency upgrades. The main programs to know:

• Con Edison Smart Usage Rebates: Insulation, air sealing, and HVAC efficiency rebates for NYC and Westchester customers. Visit coned.com/energyefficiency.
• PSEG Long Island Energy Efficiency: Similar insulation, HVAC, and appliance rebates for Long Island customers at psegliny.com/energyefficiency.
• NY Green Bank / NYSERDA EmPower: Income-qualified NY residents can receive free insulation, air sealing, and efficient appliances. Apply at nyserda.ny.gov/empower.
• Federal IRA Section 25C: 30% tax credit on insulation, air sealing, efficient HVAC, and heat pump water heaters (with per-category caps). Claimed on IRS Form 5695. No income limit.

Gas bill savings are one lever. Electricity bill reduction — and cash back — is another. Meltek enrolls Con Edison and PSEG customers in demand response programs that pay $50–$175 per summer season for briefly reducing AC use on peak-demand afternoons.

Combined, a homeowner who insulates their attic, upgrades to a 95%+ furnace, installs a smart thermostat (with the ConEd rebate), and enrolls in demand response through Meltek could realistically save $500–$900 per year in combined gas and electricity costs — much of it covered by rebates and tax credits.

Check demand response eligibility and enroll free →