How to save money on your laundry bills: practical tips for saving energy and water

Quick laundry savings tips

• Wash cold to cut energy use.
• Run full loads only.
• Use less detergent - powders are better value.
• Line‑dry instead of using the dryer.

Quick and easy ways to save money on laundry

Wash clothes in cold water to reduce energy use

A warm or hot wash can cost 80 per cent to 90 per cent more than a cold wash, according to YourHome, the Australian Government’s independent guide to energy-efficient housing.

If you're buying a new washing machine, make sure it includes a cold wash program option. You'll also find front-loaders are usually more water and energy-efficient. Some washing machines have an energy label with energy consumption displayed for both cold and warm washes, although that is optional for manufacturers to display. 

However, it's important to note that some washing machines may need both hot and cold water to function properly.

Wash full loads to reduce water and electricity use

Washing machines are one of the biggest water users in the home. You can reduce their water consumption by minimising the number of cycles you run. This means doing larger loads, less often.

Running smaller loads more often can lead to unnecessary water and energy consumption, as the washing machine will still use the water and energy needed for a full load. 

Be mindful not to overfill your washer, however, as this can lead to ineffective cleaning and even wear the machine out faster.

Use the right detergent to avoid waste and re-washing

Selecting the right laundry detergent is crucial not only for achieving clean clothes, but also for saving money. Generally speaking, laundry powders offer more bang-for-buck than liquids and come in more environmentally friendly packaging too.

Many modern detergents are formulated to work effectively in cold water, keeping the cleanliness and freshness of your clothes while helping you save money. Cold water is often better for clothes and may mean you don't need to separate colours, but always check the care labels on individual garments.

Use only the amount of detergent necessary to avoid wasting the product. More detergent won't necessarily result in cleaner clothes, but it may cause residue to form on your washing. If items are heavily soiled, consider using a pre-wash stain treatment. Commercial products exist, but some home remedies may be effective. Common solutions include soda water for coffee and wine stains, and hydrogen peroxide for blood, but always do a spot test first. Dry cleaning may be the safest option for delicate fabrics. 

Run laundry during off‑peak or solar hours

Check your energy plan to clarify if time-of-use tariffs apply. If they do, you can save energy costs by only washing your clothes during off-peak periods.

Off-peak periods are when the demand for electricity is typically lower, meaning the cost of using it is lower too. This makes it a great time to run power-hungry appliances like washing machines and dryers (as well as dishwashers). Swapping to a plan with time-of-use tariffs can help save you money, so long as it suits your family's needs and schedule.

If you have solar panels, time your laundry to run when your panels are producing the most power. This will normally be in the middle of the day. This can help reduce the amount of power you buy from the grid.

Line-dry clothes to save on electricity

Victorians love their clothes dryers, with around half of households in the state owning one. The convenience of dryers comes at a cost, however. The energy rating makes a difference too. According to Your Home, a 2‑star dryer uses around twice as much electricity as a 6‑star model.

According to YourHome, a 6-star dryer uses about half the electricity of a 2-star dryer.

For example, a household using a 7kg, 6‑star dryer every day would use about 1,150kWh of electricity a year, compared with around 2,210kWh for a 7kg, 2‑star dryer — a difference of 1,060kWh. Based on an electricity tariff of 29 cents per kWh, Your Home estimates this could save a household around $304 a year on their energy bill.

To save on costs, line dry your clothes whenever possible. Not only does this method save on bills, but it also extends the lifespan of your clothing, reducing the wear and tear caused by the tumbling action of the dryer. Fresh air and sun may also help kill bacteria and dust mites attached to your items as well as aid in bleaching out some stains. 

Apartment, townhouse and duplex dwellers (including renters) without space for a permanent clothesline can still line-dry by using drying racks. If outdoor space is limited, use drying racks inside instead - a pedestal fan can help speed up the process.

Eliminate hidden energy use in the laundry  

To further reduce your energy consumption in the laundry, eliminate hidden energy hogs like leaving your appliances on standby mode, leaving the lights on or not using LED lightbulbs, or keeping air vents open in the laundry when the room isn’t in use. 

Long‑term changes to reduce laundry costs and energy use

Upgrade to energy‑efficient washing machines and dryers

Investing in an energy-efficient washing machine and clothes dryer might seem like a substantial expense at first, but upgrading your appliances can result in significant savings over time.  

Washing machines typically last up to 10 years, according to energy.gov.au, so it is important to choose one that is energy efficient for the long term. 

Energy-efficient appliances are designed to use less water and electricity while maintaining optimal cleaning performance. An efficient washing machine should: 

• Include a cold wash option, which can reduce energy use by up to 80 per cent.
• Offer both hot and cold-water connections, making it more cost‑effective for homes with gas, off‑peak electricity or solar hot water systems.
• Have timers and load sensors, allowing the machine to use the right amount of water and run during off‑peak periods where possible.
• Be a front‑loader, as these typically use around 50 per cent less water than top loaders and are gentler on fabrics.

Choose appliances with high energy and water ratings

Look for the Energy Rating Label on your washing machine and dryer. This label rates the energy efficiency of appliances on a star scale from 1 to 10 – the more stars, the more energy‑efficient the product. According to YourHome, rating scales for most appliances have been adjusted over time to reflect improvements in technology and performance.

You can also check the product’s water rating here.

Use an energy‑efficient clothes dryer - or avoid one entirely

A clothes dryer can use up to 10 per cent of total household energy use for heavy users, according to YourHome, the Australian Government’s guide to environmentally sustainable and energy‑efficient homes.

Using a clothes dryer with a high spin speed (1800 revolutions per minute or more) is faster and more efficient than one with low spin speeds. 

YourHome also recommends dryers with ‘auto-sensing’ that stop when the clothes are dry.

You may wish to weigh up the differences in price, energy usage and bills for both condenser dryers and heat pump dryers – or decide if you need a dryer at all. 

Heat pump dryers are generally more expensive on initial purchase, but are cheaper to run - around 50 per cent less per load than condenser dryers. 

Over time, the reduced consumption will contribute to lower utility bills to save you money. 

Install solar or heat‑pump hot water systems

Victorian households that use solar energy to power a range of devices, including hot water systems and appliances, save over $1,000 per year according to Solar Victoria.

Homeowners may also qualify for a range of solar rebates and finance options, including government rebates up to $1,400 to install solar panels and hot water systems. 

Even if you don't have the ability to install solar panels (some properties do not), you may be able to install a solar hot water system. These take up far less space than solar PV systems and, when combined with a washing machine that has both hot and cold connections, lets you wash with warm water at a significantly reduced cost.

Upgrade to a heat pump hot water system

The type of hot water system in your household can impact the cost of your water bill. Water heating accounts for 15-30 per cent of household energy use, according to the Australian Department of Climate Change, Energy, the Environment and Water.

Both economically and environmentally friendly, a heat pump hot water system can use up to 80 per cent less energy to warm water in your home. 

While there is an upfront cost, Solar Victoria offers rebates up to $1,400 as part of the hot water rebate government initiative, and the Victorian Energy Upgrades for households program offering discounts up to $910 for eligible participants.

You can also investigate bundling a hot water heat pump with a solar power system. 

Get an energy monitor 

Using an energy monitor allows you to check your daily energy usage and find opportunities to reduce consumption, such as scheduling household tasks during off-peak periods.

Energy monitors are accessible to most households equipped with smart meters, and eligible individuals may qualify for rebates through the Victorian Energy Upgrades program.

Maintain laundry appliances to keep them running efficiently

Proper maintenance of your washing machine and clothes dryer is essential for optimising their efficiency and extending their lifespan.

Regularly clean the lint trap in your clothes dryer to ensure best airflow, reduce energy consumption and prevent it from becoming a fire hazard. Keep the washing machine's door and detergent dispenser clean to prevent mould and mildew, which can hinder its performance. 

By keeping your laundry appliances in top condition, you not only save money on immediate repair costs, but also ensure they run efficiently, minimising overall energy usage.

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