America’s homes continue to get ‘smarter’ – that is, loaded with smart technology like thermostats that adapt to your schedule, lights that turn off when no one’s in the room and front-door cameras that recognize tenants. About three of every four U.S. homes had at least one such device in 2024, according to data company Coolest Gadgets. That usage is expected to reach 90% by 2029.
But a smart home isn’t just convenient; it can also save you money.
Although your mileage may vary depending on the kinds of devices you get (and how they’re set up), a technology-forward home can make a noticeable dent to your energy bill, help prevent costly repairs in the future and earn you a reduction in your homeowners insurance rates.
Read on for more about each of these ‘smart ways’ to save, including how much they can reduce your costs.
1. Increased energy efficiency
Smart devices can automate tasks you cannot do, because you aren’t home to complete them, or might not do, because they take more time and trouble than you care to exert. These small, automatic adjustments serve to lower your monthly energy bill, potentially by enough to pay off the cost of the devices that enable them.
Smart thermostats
A smart thermostat can automatically lower the temperature when you leave for work and warm things up before you get home, so you’re not heating or cooling an empty house. Some models, from brands like Nest and Ecobee, are even able to learn from your schedule, and adjust the schedule as needed when it changes.
While some such learning thermostats can cost $100 or more, basic models you program yourself start at $25 or $30. You can expect an average savings of 8% in heating costs and 10% in cooling costs by using a smart thermostat in your home. Some utility companies even offer rebates of up to $75 or so on their purchase price or on your monthly bills for a time.
Smart light bulbs
Smart light bulbs, which connect to the Internet via Wi-Fi or Bluetooth, can be programmed to follow a schedule based on your routine. Many such bulbs use energy-efficient LED technology, which provides both longer bulb life and lower energy consumption.
Bulbs with such capabilities cost more than “dumb” bulbs, but are still relatively affordable – prices typically start at $10 to $15. Because LED bulbs are energy efficient, the additional savings from their programmability is relatively modest — as little as a 7% savings over their non-smart counterparts. But those savings can add up if all the bulbs in the home have advanced technology.
Smart plugs and power strips
Smart outlets, plugs and power strips let you remotely control and automate any device with an AC plug. You can schedule electronics to power down when they’re not in use, according to a schedule or when motion sensors detect no movement in the room..
As with smart bulbs, you’ll pay more for smart plugs and power strips than standard models. But many plugs and strips cost around $15, and that outlay can easily be recouped through reduced energy bills. Because you can connect countless electronics and electric devices to a single strip or plug, the potential power savings from a single purchase can be substantial — up to 50%.
Smart appliances
Reduced energy bills add to the reasons you may want to replace older appliances with smart successors. Newer models of washers, dryers and dishwashers can now be set up to run during off-peak energy hours, when rates are lower.
But some smart models do more. They sync with utilities online, to automatically identify and run during those designated low-energy hours. Or you can control them remotely – so you could turn on your air conditioning earlier than scheduled, or to a lower temperature, because the day has been hotter than expected.
Smart appliances could reduce energy costs by 2% to 9% compared to regular models. You might save an additional 3% or so by using the capabilities of some models to use information gleaned from their operation to further optimize their energy use.
2. Savings from prevention
A second category of smart home technology are detection devices that use their Internet connections to issue early warnings against threats. By detecting perils that may not be apparent to you – because you aren’t home, or because they’re out of easy sight – these devices reduce the odds of costly fires, flooding or burglaries.
Smart smoke alarms
These devices are connected versions of the traditional alarms that sound when they detect smoke, carbon monoxide or both Smart alarms use their connectivity to send alerts to your smartphone. They often have other handy features, too, like the ability to turn off false alarms from an app rather than, say, a stepladder.
As with most such devices, smart alarms are more costly than their less intelligent counterparts, Models typically cost $100 or more, which can become expensive when installing alarms across a multistorey home. But cheaper, if less feature-heavy, models are available for $50 or less.
Leak detectors
A water leak, even a slow one, can easily go undetected and cause significant damage, from rotted wood to mold growth. Leak detectors can monitor the home’s pipes and areas where leaks may occur, such as around appliances or pumps, and send alerts to your smartphone or even automatically shut off the water supply.
These detectors start at about $50, for models that typically communicate via Bluetooth and connect to the Internet only if you also have a home automation or security system. Price tags can rise to as much as $500, for detectors that monitor the entire home and have extra capabilities such as monitoring the humidity of the ambient air.
Smart security devices
Smart home security ranges from video door bells that transmit images from your home to your smartphone and beyond to full security systems that monitor multiple points of entry, which can cost thousands of dollars.
The smart door bells can cost as little as $30, although the best models tend to cost at least twice that much. Almost all types of smart home security require monitoring fees, which start as low as $3 a month for some video door bells to up to $80 or so for full systems.
3. Insurance discounts
Because some smart home devices can reduce the risk of a claim, homeowners insurance providers often give discounts for buying and using them. The reductions are most common for technology that connects online and has third-party monitoring.
The breaks can begin with rebates or discount codes that sometimes substantially or even entirely offset the purchase cost of equipment such as home security systems or water-leak detectors. Some insurers also offer modest ongoing reductions in premiums for the use of risk-reducing technology; discounts of between 2% and 9% are typical.
Be aware, though, that you may need to use certified devices and have the equipment installed by a professional to qualify for these reductions. Check with your insurance company about how adding specific smart home devices will impact your premiums.
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