If you’ve ever looked at your electric bill after switching to telework and thought, “Wait, why is it so high?” you’re definitely not alone. In fact, one survey found that about 90% of people working from home noticed their electricity costs went up (LOHASTYLE Inc., 2024).

The most common increase was ¥1,000 to ¥3,000 per month. That might sound like “just a few thousand yen,” but over a year, it adds up to ¥12,000 to ¥36,000 in extra costs. And whether your company helps cover that expense depends entirely on the employer.

In this article, based on the latest information as of March 2026, we’ll break down why telework raises your electric bill, practical ways to save, how to ask your company for a work-from-home allowance, and even the National Tax Agency’s rules for tax-free reimbursements.

How Much Does Telework Increase Your Electric Bill? A Realistic Breakdown by Device

Let’s say you work from home eight hours a day, 20 days a month. How much extra electricity are we talking about? Here’s a device-by-device estimate, calculated at ¥31/kWh as of March 2026.

DevicePer dayIncrease over 20 workdays
Air conditioner, coolingAbout ¥26 to ¥228About ¥520 to ¥4,560
Air conditioner, heatingAbout ¥27 to ¥456About ¥540 to ¥9,120
LaptopAbout ¥5 to ¥12About ¥100 to ¥240
Desktop PC plus monitorAbout ¥15 to ¥40About ¥300 to ¥800
Lighting, LED ceiling lightAbout ¥5 to ¥10About ¥100 to ¥200

As you can see, the biggest culprit is the air conditioner. Heating in winter uses especially large amounts of power and can add close to ¥9,000 a month in some cases. The good news is that changing how you use your air conditioner can lead to real savings.

A laptop alone costs only around ¥200 a month to run. It’s easy to think, “My computer must be driving up my bill,” but in reality, climate control is what’s eating most of the electricity.

7 Easy Ways to Cut Telework Electricity Costs Starting Today

Here are practical ways to save, starting with the ones that tend to have the biggest impact.

1. Adjust Your Air Conditioner Temperature, Saving About ¥1,800 a Year

Japan’s Ministry of the Environment recommends setting air conditioning to 28°C for cooling and 20°C for heating. Raising the cooling temperature by 1°C can reduce power use by about 13%, while lowering the heating temperature by 1°C can reduce it by about 10% (Ministry of the Environment, “Survey on Carbon Dioxide Emissions from the Residential Sector”).

If 28°C feels too hot, combine it with the next tip.

2. Use a Circulator Fan, Lowering the Feels-Like Temperature by 2 to 3°C

Using a circulator fan or regular fan to move air around can make the room feel 2 to 3°C cooler. That means you can raise the air conditioner setting and still stay comfortable, especially in summer. The fan itself usually costs only about ¥50 to ¥100 a month to run, so it easily pays for itself.

3. Use “Auto” Mode and Leave the Air Conditioner On

The key point is that an air conditioner generally uses less electricity when it keeps the room at a steady temperature. It draws the most power when starting up, so if you’re stepping away for an hour or two, leaving it on is often more efficient than turning it off and on repeatedly.

“Auto” mode is usually best. Instead of manually blasting it on high and then switching to low, it’s more efficient to let the unit manage the temperature itself.

4. Clean the Filter Every Two Weeks, Saving About ¥70 a Month

When dust builds up in the filter, airflow drops and the air conditioner has to work harder, using more electricity. According to the Ministry of the Environment, cleaning the filter once or twice a month can save about 4% during cooling and about 6% during heating.

5. Use Sleep Mode on Your PC for Breaks Under 90 Minutes

Computers use the most power when turning on and shutting down. If you’ll be away for less than 90 minutes, sleep mode is more energy-efficient than shutting down. Lowering your display brightness to 50% can also save a few hundred yen a year.

6. Work in a Sunny Room

If you work near a bright window, you can often keep the lights off during the day. LED lighting may cost only around ¥100 to ¥200 a month, but small savings add up. In winter, sunlight can also warm the room and reduce heating costs.

7. Review Your Electricity Plan

If working from home has increased your daytime electricity use, it may be worth reviewing your rate plan. Comparison sites like ENECHANGE can help you find plans with lower daytime rates, and switching can sometimes save ¥500 to ¥1,000 a month.

Can You Ask Your Company to Pay for Electricity? Typical Work-From-Home Allowances

If telework is raising your electric bill, it’s natural to wonder whether your company should cover it. The short answer is: legally, companies aren’t required to pay. That said, many employers provide a fixed “work-from-home allowance” or “telework allowance.”

Typical Work-From-Home Allowance Amounts

According to 2025 research, the most common work-from-home allowance is ¥3,000 to ¥5,000 per month (Money Forward Cloud Payroll). This usually covers electricity, internet, and water costs together.

  • ¥3,000 per month: The most common amount, roughly covering extra utility costs
  • ¥5,000 per month: A more comfortable amount that also factors in internet costs
  • ¥10,000 or more: A more generous allowance seen at some IT companies and foreign-owned firms

How to Negotiate If Your Company Doesn’t Have a Policy

If your company doesn’t offer a work-from-home allowance, it’s still worth bringing it up with HR. These three points can help.

  1. Show a specific amount: Use your electric bills to explain that your costs have gone up by about ¥X per month
  2. Bring examples from other companies: Look up allowance amounts at similar companies in your industry
  3. Compare it with commuting costs: Ask whether some of the money saved on commuter passes could be redirected to a remote-work allowance

Don’t Miss This: Use the National Tax Agency’s Tax-Free Formula to Increase Take-Home Pay

As a general rule, a work-from-home allowance is taxable because it’s treated as salary. But if the company reimburses the actual business-use portion based on the formula provided by Japan’s National Tax Agency, it can be treated as tax-free (National Tax Agency, “FAQ on Cost Burdens Related to Working from Home”).

Formula for the Business-Use Portion of Electricity Costs

Here’s the formula provided by the National Tax Agency.

Business-use portion = Monthly electricity bill × 1/2 × (work-from-home days ÷ days in that month) × (work room floor area ÷ total home floor area)

The “1/2” represents work hours as a share of waking hours: eight working hours out of 16 hours, excluding eight hours of sleep from a 24-hour day.

Example Calculation

For example, suppose your June electric bill is ¥20,000, you work from home 20 days, your work room is 10 m², and your home is 50 m²:

¥20,000 × 1/2 × 20/30 × 10/50 = about ¥1,333

If your company reimburses this ¥1,333 as an actual expense, it can be tax-free. In some cases, this can leave you with more take-home pay than a flat ¥5,000 taxable allowance, so it’s worth asking accounting whether an actual-expense reimbursement method is possible.

Freelancers and Sole Proprietors Can Deduct Part of Their Electric Bill

If you’re a freelancer or sole proprietor, you can deduct part of your home electric bill as a business expense through household expense apportionment.

The deductible percentage should be calculated reasonably based on the time and space used for work. For example, if you work eight hours a day and use 30% of your home for business, you could deduct about 10% of your electric bill: 8/24 × 30%.

When filing your tax return, accounting software such as freee or Yayoi can automatically calculate this if you set up household expense apportionment.

FAQ

How much does telework increase electricity costs?

For someone working from home eight hours a day, 20 days a month, an increase of ¥1,000 to ¥3,000 per month is typical. However, if you use heating heavily in winter, the increase can exceed ¥5,000. The air conditioner uses the most electricity, while the PC itself usually costs only about ¥100 to ¥800 a month.

Will my company pay for my telework electricity costs?

Companies aren’t legally required to cover them, but many provide a work-from-home allowance of ¥3,000 to ¥5,000 per month. If your company doesn’t have a policy, try showing HR the specific increase in your electric bill and asking whether support is possible.

Is a work-from-home allowance taxable?

If it’s paid as a flat allowance, it’s generally taxable. However, if your company reimburses the business-use portion based on the National Tax Agency’s formula, it can be treated as tax-free. See the National Tax Agency’s “FAQ on Cost Burdens Related to Working from Home” for details.

Is it cheaper to leave the air conditioner on?

If you’re stepping away for only an hour or two, leaving it on is usually more energy-efficient. Air conditioners use the most power when starting up, so frequent on-off switching can backfire. If you’ll be out for half a day or longer, though, turn it off.

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