Skip to Content

7 Ways Smart Homes Can Save Money (Updated 2023)

Smart Homes Save Money

Everything’s pricey these days.

But you know what can lower your expenses? 

A smart home. 

“Isn’t that expensive to set up?”

It can be…

But trust me.

A smart home saves you a lot of money in the long run.

Continue reading to find out:

  • How a smart home helps you conserve water. 
  • 7 ways smart homes can help you save money. 
  • 3 smart thermostat benefits that reduce your electricity expenses.
  • And a lot more… 

Do smart homes save money?

Smart homes save money. They use the least amount of electricity possible. And they also ensure that you don’t forget to turn OFF your devices. So you don’t waste energy. 

On top of saving electricity…

Smart homes also let you avoid water leakage that can cost you hundreds of bucks yearly. 

Moreover, this setup helps strengthen your house’s security. Preventing robberies that can make you lose thousands of money and valuable possessions overnight. 

7 ways smart homes can save money

#1: Curb heating and cooling energy 

According to the US Energy Information Administration (EIA)… 

The largest energy consumers in US households are air conditioners and fans. 

Now, many people think paying a lot for these devices’ electricity is inevitable. 

But that’s far from the truth. 

Because smart homes can significantly curb your heating and cooling expenses.

It’s all thanks to these… 

3 ways smart thermostats can help you save money:

Usage monitoring

Most smart thermostats monitor your daily routine through your smart home system. 

So, depending on the time of the day or your current activities… 

Your device will adjust your household’s temperature to use the least energy. 

For example, when you leave the house

The smart thermostat won’t find it necessary to maintain your house’s temperature. 

So, it’ll barely heat or cool your space to use the least electricity. 

But when it senses that you’re almost home through your phone’s location…

Your smart thermostat will maintain your house’s temperature again. 

Hence, you won’t feel any discomfort while saving energy. 

Remote control 

Here’s something I’m always guilty of doing:

Forgetting to turn OFF the AC when I leave the house. 

This habit used to shoot my utility bills through the roof.

But ever since I got a smart home… 

I stopped stressing about this problem.

Because with smart thermostats…

I can turn OFF my AC and heater from anywhere using my phone.

So, gone are the days when I wasted hundreds of bucks on the cooling/heating I didn’t even use. 


Some energy providers offer rebates if you install a smart thermostat for your home.

For example, PG&E gives $120 to households that install this device. 

And ConEdison Electric also offers $85 when…

You use your Nest thermostat for its energy-saving program

Interested in getting a smart thermostat to save money?

Watch this video to see how this device works: 

You might also want to know: Will Nest Thermostat Work Without Power? 3 Essential Tips

#2: Track your appliances’ energy consumption 

Some appliances are very energy-efficient.

In contrast, others suck electricity out of your outlets like hungry vipers.  

But how can you even distinguish where your devices fall into these 2 categories? 

Well, that’s pretty easy to do if you have a smart home.

Because most smart appliances can track how much electricity they consume.

And if you have ones that don’t…

You can connect them to a smart plug and let this device calculate. 

Once you know exactly how much energy your devices consume, it’s pretty easy to…

Follow these 2 ways to save money with electricity tracking:

Limit your usage

Let’s say you have 2 ACs in your house. 

And after tracking their energy consumption, you realize that… 

One uses 4kWh, while the other only uses 3kWh. 

With this information, it’s pretty obvious how you can reduce your electricity bills. 

Just use the AC that uses the least energy to save more money. 

And limit using the more power-hungry model. 

Replace old models

Older appliances are generally less efficient in using energy than modern ones. 

So, if you have a device that uses more electricity than it should… 

Consider replacing it with a newer model. 

Pro tip: Always check an appliance’s energy label before buying it. This shows how much power the device uses. And how its electricity usage compares to other common appliances in your house. 

#3: Kill phantom load 

Most people don’t unplug their appliances, such as TVs, at night.

So, they spend about 10% of their electricity bills paying for their devices’ phantom load.

Which refers to the power your gadgets consume when they’re OFF yet plugged into the outlet. 

Fortunately, you can eliminate this problem easily.

The solution for non-smart homes is this:

Unplug your appliances every night before going to sleep. 

Now, this is pretty easy to do if you only have a handful of devices around.

But for typical households with at least a dozen appliances… 

Unplugging all your devices at night would be a workout routine.

And plugging them again in the morning won’t be a fun way to start the day. 

Trust me. I’ve tried it. 

With a smart home, though, here’s all you need to do:

Tap your screen once, or say a voice command.

And your house’s phantom loads will immediately decrease. 

Because smart plugs let you shut off your outlets’ power. Through an app and voice commands. 

For a more convenient approach…

You may even set up Routines that schedule your smart plugs to turn OFF every night. 

So, you can save up to 10% of your electricity expenses without doing much. 

#4: Cheaper holiday seasons 

Year-end holidays are usually the most exciting.

You see glowing pumpkins during Halloween. And lights across the streets during December. 

But if you’ve also tried setting up these displays at home… 

It’s no secret that holiday decorations are guilty of raising your electricity bills. Unless you turn them OFF before bed.

But let’s face it…

Most people just leave their light displays ON at night. 

Because by then, they’re too tired to turn them OFF. 

The result of this habit? 

Unexpected electricity charges during the holidays. 

Luckily though, smart homes can prevent this problem. 

Because smart plugs can turn OFF your holiday displays during the hours you want them to. 

#5: Maximize off-peak energy hours 

If you live in the US, you’re most likely familiar with off-peak hours. 

Or the time of the day when electricity is used the least in your location. 

For example, in New York…

The off-peak hours are between 11 PM and 7 AM. 

Which is understandable since most people are sleeping at this time. 

Now, utility providers often charge much less for your electricity during off-peak hours.

But unfortunately, inside a regular household… 

Maximizing this benefit is hard unless you stay up at night to use your appliances. 

For smart homes, though, getting the most out of off-peak hours is a piece of cake. 

Because you can schedule your appliances to turn ON whenever you want them to. 

So, it’s easy to follow these…

2 tips to maximize off-peak hours with a smart home:

Charge your devices during this time

Just connect your gadgets to your smart plug before you sleep. 

And schedule it to turn ON during the off-peak hours at night. 

This way, your devices will be fully charged when you wake up. 

But you’ll pay cheaper for your energy consumption than you’d usually do.

Turn ON cleaning appliances during off-peak hours

I’m talking about smart devices like:

Most people use these appliances in daylight. 

But if you can delay turning them ON until the middle of the night… 

You’ll end up saving a lot of money over time. 

#6: Conserve water 

Did you know that the US loses about 1 trillion gallons annually due to water leakage

That’s about 1500 Olympic swimming pools. And no, this isn’t an exaggeration. 

See, 10% of households in the US have water leaks that waste 90 gallons daily. 

And although this problem is very easy to fix…

Unfortunately, leaks are hard to notice. 

So, many people waste money paying for water they don’t use. 

If you have a smart home, though…

You’ll avoid this problem with the help of smart leak sensors. Or devices you may place:

  • Under sinks.
  • Behind toilets.
  • Around your washing machine. 

So you’ll immediately be notified if a leak is detected. 

#7: Never forget to turn OFF appliances

Imagine this:

It’s late at night, and you’re about to sleep. 

But you forgot to turn OFF your PC in the living room. 

Now, you’ll probably just forget about it if you live in a regular household.

However, inside a smart home…

Your voice assistant will turn OFF your PC for you.

For example, Alexa has a feature called Hunches.

And basically, this function allows her to…

Make recommendations when some of your appliances aren’t in their usual state. 

So, for this scenario…

Alexa will notify you that your PC is ON.

And she’ll ask you whether you’d like her to turn your device OFF like it usually is at night. 

Pretty convenient, right?

But that’s not all.

Smart homes also let you create Automation or Routines.

And these allow your devices to turn OFF/ON automatically during specific times. 

So, you never have to pay for unwanted energy consumption. 

Bonus: Avoid burglary

Let’s face it. Anyone can be a victim of house burglary. 

And when they do happen… 

You can lose thousands of dollars overnight. 

Now, I’m not saying a smart home can permanently stop burglars from entering your house. 

But trust me. Your house will be much safer if it’s smart. 

Here’s the first reason why:

Smart lights make your house look occupied

Most burglaries happen in empty houses.

And the biggest giveaway when someone’s not home?

A completely dark house. Or one with lighting conditions that don’t change. 

Luckily though, you can easily avoid these 2 scenarios with smart lights. 

Because these devices can turn ON/OFF automatically in unexpected patterns. Making it look like someone’s home.

Alternatively, you may also control your smart home’s lights remotely. Even if you’re miles away. 

Smart surveillance systems are more secure 

Traditional surveillance systems only record events.

But smart versions allow you to avoid dangerous situations with:

  • Motion detectors. 
  • Loud safety alarms. 
  • Real-time camera monitoring. 

Plus, there are also professional monitoring companies that work with smart homes.

And their job is to contact authorities if your house is ever in trouble. 

So, you’ll avoid losing your properties even when you’re not home.