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Home Improvement

7 Smart Home Upgrades That Can Lower Energy and Utility Bills

Digilifetrends Published 4 min read

Key Takeaways

  • Devices such as smart thermostats, leak detectors, and energy monitors can trim annual costs by improving energy efficiency.

    Credit: Saklakova / Getty Images

  • LED smart bulbs, smart plugs, and irrigation controllers can reduce expenses by automating schedules and responding to occupancy.

  • Using centralized controls, automation, and regular software updates helps maximize the value of smart home technology.

A home depends on a network of appliances and systems that handle comfort and maintenance, from heating and lighting to water, cleaning, and cooking. Older equipment may work fine, but it often lacks newer features such as temperature tracking, leak alerts, and occupancy detection.

Upgrading to smarter devices can help reduce monthly energy bills and cut waste. The guide below highlights smart home improvements that are genuinely worth considering.

Credit: Werner Straube
Credit: Werner Straube

1. Smart Thermostats

Smart thermostats allow you to manage heating and cooling through a phone app or by voice using a connected smart hub. Many models also learn household routines and create custom temperature schedules to reduce waste, which can save homeowners between $100 and $200 a year. If you are unsure whether one makes sense for your home, ask a local HVAC professional for advice.

2. Leak Detectors

Hidden leaks can lead to serious damage, particularly in places you do not visit often, such as a basement. A smart leak detector can be placed near washing machines, water heaters, or under sinks so it can catch leaks quickly and send an alert to your phone, allowing you to respond right away.

These devices may also lower costs in another way, since some homeowners insurance plans offer premium discounts when they are installed. Still, discounts vary, so it is best to check with your insurance representative first.

3. LED Smart Lights

LED smart lighting is a practical way to cut electricity use in frequently used areas of the home. You can connect the lights to your phone or a compatible hub and set schedules so they switch on and off automatically, preventing unnecessary daytime use.

Smart lights can also work with occupancy sensors. As the name suggests, these sensors detect whether a room is occupied and turn the lights off when no one is there. When used effectively, smart lighting can reduce lighting costs by 20% to 40%, or about $20 to $75 a year for the average household.

4. Smart Plugs and Power Strips

Even when a device itself is not a smart model, smart plugs and power strips make it easy to bring standard appliances into a connected home setup. Once installed, they can be controlled through a phone or a smart hub, letting you schedule devices or shut them off remotely.

This can help eliminate electronics that sit in standby mode and draw phantom power throughout the day. By reducing that wasted energy, you could save as much as $100 per year.

5. Energy Monitoring Systems

Sometimes the simplest way to save money is to see exactly where energy is being wasted. A smart energy monitoring system provides real-time information about how much power your home uses and where that usage is occurring.

For the system to be most effective, the whole home should either use smart devices or connect through smart plugs to a central hub so that nothing is left out of the tracking. For high-use households, improved awareness can lead to more than $300 in annual energy savings.

6. Smart Irrigation Controllers

If your home has an irrigation system, a smart controller can reduce water waste and increase savings. These systems adjust watering schedules based on weather forecasts, so you are not watering during rain. They also let you control the system remotely and set custom schedules. Average yearly savings are often estimated at $150 to $300, depending on local water rates and property size.

Credit: Jacob Fox
Credit: Jacob Fox

7. Smart Appliances

Smart appliances usually cost more than comparable non-smart models, but the long-term savings can make up for the higher upfront price. Washers, dryers, and dishwashers with smart features can be programmed to run during off-peak hours, which helps reduce electricity costs.

They can also adjust energy use based on what each load needs, so they do not consume more power than necessary. That efficiency can reduce appliance energy use by up to 10%.

Get the Most Out of Your Smart Devices

There are several ways to maximize the value of smart home products, especially if you already have multiple devices or plan to add more soon. Helpful strategies can make their benefits go even further.

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