If you want to reduce your electricity bill at home in Saudi Arabia, the biggest gains come from the building itself, not just from switching off lights. In Jeddah’s hot and humid climate, air conditioning works for most of the year, so how well the house keeps heat out decides how much you pay. This guide shows how to reduce your electricity bill by up to 80% in 3 practical steps.
Key takeaways
- Air conditioning is the largest share of household electricity in hot climates like Jeddah.
- Good insulation of walls and roof can cut electricity use by up to 50%.
- Adding solar panels on top of an insulated home can raise savings to up to 80%.
- Efficient AC and insulated ducts protect the savings you get from insulation.
- Greywater recycling can also save up to 70% of water use.
In this guide
Why electricity bills are high in Jeddah
Long summers, high humidity and strong sun mean air conditioners run for many hours every day. In a conventional concrete house, walls and roof absorb heat during the day and release it at night, so the AC keeps working even after sunset. Heat also leaks through “thermal bridges” such as columns and beams. To reduce your electricity bill in a lasting way, you need to stop that heat before it enters the house.
Step 1: Insulate the building envelope
The building envelope is the walls, roof and floor that separate inside from outside. In SGI homes, external walls use ThermoCementoLite panels with an EPS insulation core, and thermal break pads (TIM) at steel connections stop heat from travelling through the structure. The roof and slabs are insulated as part of the system.
With this approach, electricity use for cooling can drop by up to 50%, because the AC only needs to remove a small amount of heat. Insulation also keeps rooms at a steadier temperature, which makes the home more comfortable.
Step 2: Choose efficient AC and insulated ducts
Insulation lowers the cooling load; to reduce your electricity bill further, the next step is to meet that smaller load efficiently. SGI homes are designed for three AC options depending on the layout and budget, with pre-insulated aluminium ducts that reduce cooling losses before the air reaches the rooms.
- Size the AC to the actual cooling load of an insulated house, not a concrete one; oversized units waste energy.
- Choose high-efficiency units with a good energy label. The Saudi Energy Efficiency Center publishes guidance on efficient appliances.
- Service filters and coils regularly so the system keeps its efficiency.
Step 3: Add solar power
Once the home needs less energy, solar panels can cover a large share of what is left. Combining a well-insulated envelope with a rooftop solar system can reduce your electricity bill by up to 80%. Solar also matches the cooling demand well, because the strongest sun comes at the same time as the highest AC use.
Steel structures make it easy to plan roof space and fixings for panels from the design stage, rather than adding them later.
How much can you reduce your electricity bill?
| Measure | Expected saving |
|---|---|
| Insulated walls, roof and thermal breaks | Up to 50% of electricity use |
| Insulation + solar panels | Up to 80% of electricity use |
| Greywater recycling | Up to 70% of water use |
These are the levels at which SGI homes can reduce your electricity bill and water use. Savings depend on the home’s size, design, orientation and how it is used.
Daily habits that help
- Set the thermostat to a moderate temperature (around 24°C) instead of very low settings.
- Close curtains or use external shading on sun-facing windows during the hottest hours.
- Use LED lighting and switch off devices on standby.
- Run washing machines and dishwashers with full loads.
- Keep doors to unused rooms closed so the AC cools only the spaces you use.
Habits help to reduce your electricity bill, but they cannot fix a house that lets heat in. The building is still the biggest lever.
Bonus: save water too
SGI homes can include a greywater system that treats water from showers and basins for reuse in toilets and irrigation, saving up to 70% of water use. PEX supply pipes and PP-MD drainage with a 50-year life also reduce leaks and maintenance.
Existing home or new build?
In an existing concrete house you can still improve shading, AC efficiency and add solar, but insulating thick concrete walls afterwards is difficult. If you are building new or adding a floor, it is far easier to build the savings in from the start. Read our steel frame home construction guide or compare steel vs concrete construction. Adding space? See how to add a floor to an existing building.
Is it worth paying more for an efficient home?
An insulated envelope, efficient AC and solar panels add some cost at the start, but they keep paying back every month for the life of the house. Because the SGI system is built up to 50% faster than concrete, you also start living in the home, or renting it out, sooner. Over the years, a lower running cost often matters more than a small difference in the build price.
When comparing quotes, ask about the expected cooling load, the insulation in walls and roof, and the AC system included, not only the price per square metre.
Reducing your electricity bill: FAQ
How much can I save on my electricity bill?
With a well-insulated SGI home you can save up to 50% of electricity use, and up to 80% when solar panels are added.
What uses the most electricity in a Saudi home?
Air conditioning is usually the largest share, especially in hot and humid cities like Jeddah.
Does insulation really make a difference?
Yes. Insulated walls and roofs with thermal breaks keep heat out, so the AC runs less and the home stays cooler.
Is solar worth it in Jeddah?
Jeddah has strong sun most of the year, and solar output peaks when cooling demand is highest, so it pairs well with an insulated home.
Can I get these savings in an existing house?
Some measures such as shading, efficient AC and solar work in existing homes, but the biggest savings come from building insulation into a new home or extension.
Want a home that helps reduce your electricity bill for good? Explore our SGI home models, the economic single-floor model, or request a quote.
