A renter's guide to utility bills in Minnesota

Understanding What You’re Paying For 

The big thing for renters is to try to avoid surprises.  Find out what you are responsible for and do your due diligence to find out what your bill is going to look like. This also means thinking about the type of property you’re renting, because that can indicate what utilities you're going to pay for and how high those bills could be. Asking for a copy of a typical utility bill is totally reasonable as someone shopping for a new home. In Minneapolis, you have the right to see those utility bills when looking for a new place to live. 

If you don’t pay for heat, you’re usually paying for it indirectly within your rent. Heat is often included in your rent if you live in a multifamily building, which typically uses a large gas boiler system. Water heating is usually included, too. So, the landlord will build those costs into your rent.  

When you’re shopping around for a new apartment or rental, you want to be thinking, “Okay, I'm moving. What’s my actual total housing cost?” The rent might be less expensive, but if you're adding additional utility costs, maybe it's not as good of a deal as you think it might be.   

As a renter, you usually don't have the ability to make many improvements that would have a huge impact in terms of how efficient the building itself is. Age is often an indicator of how well the building might be in terms of energy efficiency.  

If you live in a multifamily building, compared to a single-family home, your energy bills are usually going to be less expensive. That’s because typically the total space is smaller and you get the benefit of shared walls, so the total energy used is reduced. Likely, the units don’t have their own washer/dryer or your own water, heater which all use lots of energy. The one major exception to this is air conditioning.  

When moving into a duplex, it becomes more common that renters pay for electricity and heating.  And renting a  single-family home will typically result in the biggest energy bills, because the more total space, the more space there is to heat and cool, and more appliances operating independently.  

Utilities, Your Lease, and Your Rights 

A lot of new protections recently went into effect for renters in Minnesota. You can learn more about them on our website, but the biggest changes are related to how you are billed and who you pay your bill to. 

If you receive a bill from and pay it to your utility, you’re what’s called “directly metered.” This is the most common way utility customers are billed. 

If you don’t pay your utility directly – for example, you pay your landlord, or you pay through a third-party billing system – you have the same rights as any other utility customer in Minnesota. You have the right to a payment plan to pay down a past-due balance, and you have the right to access your utility bills in full. 

If you don’t pay your utilities directly to your provider, your landlord can’t shut off your utilities for non-payment, but you can be evicted for past-due utility bills. Check your lease to see if there’s any language about non-payment of utilities. 

This is something we get asked a lot: by law, you should only be charged for the electricity that you are using within your unit. You shouldn’t be paying for the lights in common areas, and you shouldn’t be paying for any of your neighbor’s usage. On the flip side, if you pay a gas bill, that can be divided up amongst the tenants in the building. 

Finally, some rental agreements are set up so that you aren’t paying for any utility bills – everything is all wrapped up in your rent. This is allowed in Minnesota. Be careful when signing this kind of lease, as the rent calculation could be overestimating how much electricity and gas you actually use. 

When you move out of a rental unit, you should be on top of all of your past utilities to protect yourself. It is really important that you are in contact with landlords and letting your utility providers know about move-in, move-out dates so that things don't carry over. Be proactive about it to protect yourself so there isn't confusion, and so you don’t get stuck in a messy situation down the line 

Taking Charge of Your Energy Use   

For renters, using less energy and keeping your bills low will depend a lot on behavior because you probably won’t be able to make big physical energy efficiency improvements to your home like adding insulation or upgrading equipment. Think about how you’re using the appliances in your home. Try to take opportunities to figure out if you can use less, or time things a little bit better to reduce your energy use overall. 

If you have a smart meter, take a look at your data to understand what hours of the day you are using the most energy. That way you can see exactly what might be using electricity and when. 

Understanding your smart meter data can reveal some ways to change your energy use in a way that doesn’t drastically change your life. Trying to reduce your utility bill doesn’t have to come at the expense of comfort. As a renter, it can feel difficult to have a lot of ownership of your space. However, you should feel empowered to make changes to your home that allow you to be comfortable and live an affordable lifestyle. So, while it’s not the fun answer, understanding your behaviors is the easiest way to understand your bills.   

Renters are going to see their biggest electric bills in the summertime because of air conditioners, depending on how much you need to use it. Running an AC can be a big expense, especially if you're stuck with a window unit. If you can turn off the air conditioner when not at home or try not to leave them on overnight, it can make a big difference. Prioritize when you run the AC to find the right balance between comfort and energy savings. Really try to use fans and other strategies to reduce how much you have to run an AC. For humidifiers, dehumidifiers, and space heaters, work to manage their use effectively. These items are often necessary but trying not to use them more than needed will save you energy and money. 

Small things like window cling are generally okay, but if you have older windows that are maybe stained – think wooden windows - you might want to check with the landlord to make sure they're okay with that because the sticky stuff from the window cling could tear off either the paint or the stain.  

Also, some older buildings may not have updated to LED bulbs yet. So, go buy yourself some LEDs, save those old light bulbs, put them in a closet or something, and then when you move out, put back the old ones and keep the new ones with you. 

These aren’t super exciting answers, but it’s the reality for a lot of renters. Being mindful of the little things can really add up in the long run. But, ultimately, how much you’re paying monthly for your utility bills is really wrapped up in how your home is built, and how efficient it is. Knowing that information up front is the best way to avoid surprise high energy bills. 

Renters and Clean Energy  

The very common saying regarding energy use is, “The cleanest energy is the energy you don’t use,” so try and be cognizant of behavior.  

In terms of technology, renters are usually stuck with whatever comes in the unit. Newer builds will usually have more energy efficient appliances that use less energy – newer refrigerators, and newer washers, dryers, and water heaters, if those are in your unit. However, you may find yourself paying higher rent for a newer apartment. 

You could look into other options to reduce your gas usage. For example, if you would like to use the gas stove less, you could cook with electric options like crock pots, air fryers, or  induction hot plates. Portable hot plates can be found for pretty cheap online and are a really great option for renters. 

It’s not an immediate solution, but renters have a really important perspective that needs to be lifted up in front of decision makers. Our policy team at CUB spends a lot of time advocating for consumers at the Public Utilities Commission (PUC), which is the state agency that regulates utilities in Minnesota. Making your voice heard through a public comment can feel daunting, but we really encourage people to share their stories to help shape our utility system. A renter’s experience with their utility is just as important as a homeowner’s experience. 

Energy Programs for Renters 

The main program we always screen for is Energy Assistance. It’s a program available October 1 through May 31 that provides funds towards your energy bills.  

A lot of renters either don’t think they’re eligible for the program, or they just don’t know about it. I’d strongly encourage any renter to look into Energy Assistance and see if you qualify, because it can help a lot with your energy bills. In particular, it could be a great option for college students. You can use it for any of your utilities, not just for heating. And if you qualify for Energy Assistance, you could enroll in utility affordability programs offered by your utility. Those programs go even further – they can cap your bills or even forgive past-due balances. 

On the efficiency and clean energy side, there are programs focused on making rental housing more energy efficient. The programs vary from situation to situation and location to location. If you live in specific neighborhoods in Minneapolis or St. Paul, you should reach out to the navigators at Good Energy Connections for a helping hand to figure out what programs would be a good fit for you. You can always reach out to CUB to discuss program options, too. 

Your utility may offer programs that you can opt in to have your usage come from renewable sources. Community solar gardens are another option available to renters. When you join a community solar garden, you buy into a garden and then the production from that solar garden becomes a credit on your bill. There are several different community solar gardens, so it is important to understand the contract terms.  Here is some guidance from the Attorney General.  

Quick Fixes vs. The Long Run  

During the interview, Carmen shared that working at CUB has certainly made her more conscious about utilities, household energy spending, and affordable sustainability changes.  

Unfortunately, despite utilities having drastic impacts on our everyday lives, it can be difficult to parse out what things will make material differences. After working with CUB for nine months and having this in-depth interview, I feel like I have more of a grasp on my utilities.  

However, coming into this interview I still thought that simply unplugging my idle appliances would make a large difference on my electric bill. Carmen said that a lot of appliances use some amount of energy just by being plugged in: “The key is anything with a light on it or a clock is drawing some amount of power. It's not huge amounts, though. This is not going to reduce your bill by half. So, you have to just find a balance”  

If you would like to have a more in-depth conversation about reducing your energy bill or making clean energy changes as a renter, sign up for an Energy Bill Consultation with CUB.