Investing in energy efficient technologies could help householders save £270 on bills on average.
A new study reveals they could also cut energy use by a quarter every year – equivalent to the output of six Hinkley Point C nuclear power stations.
Researchers have estimated that investing in technologies like heating, insulation, lighting and appliances could deliver benefits of £7.5 billion to the UK.
They add the full economic benefits of cutting energy demand by a quarter could be up to £47 billion.
The study by the UK Energy Research Centre (UKERC) and University of Sussex Centre on Innovation and Energy Demand believes it is technically possible to reduce demand by a further 25%, with the additional savings paying for themselves in the future.
UKERC Director Jim Watson said: “This research proves that there is still huge potential to save energy from UK homes. It is clear that reducing energy demand needs to be a priority if the government is serious about bringing down energy bills. It should be the centrepiece of the Clean Growth Plan, which is now overdue.”