“Historically, people seem to think about their energy purchases for only about six minutes a year,” said Rob Cantrell, chief executive officer at Atlantic Energy. But as electricity prices continue to rise, spending time learning how to reduce your energy usage becomes more important for saving money.
Smart home devices allow you to take control of your energy usage without requiring you to actively monitor and measure the energy consumption of every device in your home. Some of the most popular smart devices include smart thermostats, smart power strips, and smart home hubs (think Google Home, Apple Home, or even some Amazon Alexa devices, all of which can turn devices off and on for you).
You could save $50 per year on energy bills by installing a smart thermostat and up to 9% on energy costs with smart appliances. Your savings depend on the device and how you use it, but installing smart home products is a great way to reduce your carbon footprint, without having to think too much more about your energy costs.
How Smart Devices Reduce Energy Bill Costs
Smart devices save energy by learning your habits, automating schedules and monitoring energy use in real time. For example, smart thermostats adjust the temperature when you’re away to cut heating and cooling costs by up to 10%. Smart lights let you remotely turn them on or off when no one is home, reducing energy use by 7% to 27%.
Smart appliances, such as dishwashers, can sense the load size to adjust water and energy use. You can also schedule smart devices to match your energy plan or use during off-peak hours when there’s less demand to save on energy costs by 2% to 9%.
Other than automating schedules, devices like smart outlets and power strips can help you reduce “vampire energy,” or energy wasted by plugged-in devices that are not in use. Cutting phantom power to devices you aren’t using can reduce their usage by up to 50% with a tier 2 advanced power strip, according to the American Council for an Energy-Efficient Economy (ACEEE). Whether you start with one smart home device or combine multiple, you can improve your home’s energy efficiency and lower your energy bills.
What Is a Smart Device?
A smart device is a home gadget connected to the internet that uses sensors or other technology to learn your habits, make tasks easier and help you save money. You can typically control the devices from anywhere using a mobile app. Smart home products offer convenience by automating daily tasks, such as adjusting the thermostat, turning off lights or running appliances.
Smart Devices vs. Traditional Devices
Smart home and regular devices have similar purposes but operate differently. For example, traditional thermostats can maintain a set temperature, but smart thermostats learn your schedule and adjust the temperature based on when you’re home or away. It eliminates manual operation and does the work to help you conserve energy and save money.
On the other hand, smart power strips can sense when a device is off or in standby mode and will cut power to said appliance, reducing phantom power waste.
Best Smart Devices for Energy Management
With several smart home products on the market, the best options for you depend on your needs and budget. Whether you’re trying to save energy across your entire home or just in certain areas, a smart device can help. The following table shows some of the most effective smart devices for saving money on energy bills.
| Device Type | Average Energy Savings (%) | Initial Cost Range | Key Energy-Saving Features | Connectivity Requirements |
|---|---|---|---|---|
| Advanced power strip | 16–20% | $60–100/strip | Turns off power to devices not in use to reduce wasted energy for plug-in electronics and small appliances | WiFi or wireless connection |
| Smart water heating | 15% | $70–100/unit | Learns usage patterns to adjust water heating times and shift heating to off-peak hours | WiFi or wireless connection |
| Home energy management system | 10–13% | $50–$150/device | Monitors and controls energy use to provide real-time data and ways to save energy | WiFi, mobile app |
| Smart window covers | 11-20% | $350–$500/window | Schedule your shades to open and close at specific times to control heating and cooling loss | WiFi, Bluetooth |
| Smart vents and zoning sensors | 10% | $150/vent, $35/sensor | Control each room’s temperature to eliminate hot or cold spots in your home. You can focus heating and cooling on the rooms you use the most | WiFi, connected thermostat |
How To Choose Smart Devices
When considering smart home devices, think about what fits your needs, energy goals and budget. Start by reviewing your energy use to see where you spend the most, then find devices that help cut electricity costs in that area. Here are a few other tips when considering smart home devices:
- Check for rebates and incentives: Energy companies may offer rebates for some devices, while state and local governments may offer tax incentives for energy-efficient home upgrades, which may help you decide which product to purchase.
- Check compatibility: Some devices require a Wi-Fi or wireless connection. Ensure your internet connection has enough bandwidth to support adding another device. Smart products may offer more benefits when connected to a mobile app, so make sure your device is compatible.
- Consider your energy goals and budget: If you want bigger savings, it might be worth spending more upfront on a smart device for greater savings over time. Choose the devices that make sense for your goals and budget.
- Research features: Check each product to understand how it helps with energy savings. Make sure it’s compatible with your home and matches your energy goals.
- Read customer reviews: To form a clear picture of real customer experiences, check out a wide range of reviews from reliable third-party sources. Consider the potential benefits and drawbacks of choosing that device.
Smart Device Integration and Home Automation
Smart home devices work together to improve your home’s energy efficiency. While your smart thermostat improves your heating and cooling, your smart dishwasher conserves water, and your smart light bulbs reduce wasted energy. You can track how your devices work together with a smart home hub or a home energy management system (HEMS).
A whole-home management system monitors home energy use to provide feedback and ways to save. These products typically offer a user-friendly app or website to display what’s using the most energy in your home and tips for improving efficiency. Depending on your connected devices, you may be able to save up to 22% with an HEMS, per the ACEEE.
Advantages of Smart Devices
Switching to smart home devices can make managing your energy use and saving money easier. Here are a few benefits to consider:
- Energy savings: Lower energy bills and reduce usage by automating temperature control, lighting and washing cycles.
- Convenience: You can schedule devices based on your typical habits or let the device learn your routine and make automatic adjustments. You can also control the devices remotely with mobile apps to add convenience even when you’re away from home.
- Customization: Adjust your device settings for temperature, lighting and appliances according to your preferences.
Real-World Energy Savings and ROI
The average electricity bill in the U.S. costs $145 per month or $1,740 per year. Below, you’ll find how smart devices could lower your monthly bill. Depending on the device, you could recoup your investment in less than two years.
| Device Type | Average Device Cost | Average Annual Savings |
|---|---|---|
| Smart thermostat | $150–$250 | $139 |
| Smart ceiling fan | $600 | $70–$191 |
| Smart dishwasher | $900–$1,350 | $87–$157 |
| Smart refrigerator | $3,200–$4,000 | $35–$70 |
| Tier II advanced power strip | $60–$100 | $383–$870 |
Averages were determined by calculating typical monthly costs and applying the percentage savings from ACEEE data, then multiplying by 12 to estimate annual savings.
Smart Device Installation and Setup
Setting up your smart home doesn’t have to be all or nothing. You can start with one device and upgrade over time as you replace old devices or appliances. Many devices are designed for easy DIY installation, while others require a professional. Some depend on your technical skills or comfort level, while others, such as smart thermostats, depend on your home’s wiring.
DIY Smart Home Device Installation
- Advanced power strip: With no special setup required, you can plug it into the wall like a standard power strip and start being more energy efficient right away.
- Smart plugs: Plug into an outlet and connect with a mobile app or an home energy management system.
- Smart light bulbs: Screw the bulb into your light fixture and pair with a mobile app or energy management system.
- Smart sensors: These are typically peel-and-stick or installed with screws. Companies such as Vivint offer helpful video instructions.
Smart Home Devices Needing Professional Installation
- Smart HVAC systems: Professional installation ensures proper setup and integration with your current system. It may also prevent the warranty from being voided.
- Smart lighting systems: Installation may require electrical work by a professional electrician.
- Home energy management system: Devices that connect to your electrical panel may need an electrician for safe installation.
Frequently Asked Questions About Smart Home Devices
What’s the most energy-efficient smart device to start with?
ENERGY STAR recommends starting with certified smart plugs, smart lights or a smart thermostat. These smart devices are generally less expensive, making them a more approachable option for many Texans. While it’s great to make energy conservation efforts, we always recommend staying within your budget.
How much can I really save with smart devices?
Smart devices really can reduce your usage and help you save money on your monthly energy costs. However, these devices cost money, which can impact how much you save and how quickly you “break even.” All of this depends on which smart home device you choose. Smart thermostats can help you save up to 10% on your energy costs, while advanced power strips can cut phantom energy use by up to 50% from devices you aren’t using.
Do smart devices use more electricity than traditional ones?
Engineered to make your home more energy efficient, smart home devices may help you use less energy — if used correctly. If you invest in smart products, consider taking the time to understand their energy-saving capabilities. Some smart devices, such as power strips or thermostats, may use slightly more power than traditional devices. However, these devices should reduce your total usage, making them a net positive for improving your home’s efficiency.
How long does it take to see energy savings from smart devices?
It takes smart devices, such as the Nest smart thermostat, a few days to a week to learn your basic routine and continues to learn and improve over time. It may take a month or two to see the impact of your smart home devices. Review your monthly usage and compare it to previous months before you installed smart home devices to see how it changes over time.
