Smart home technology has gained popularity for its convenience, comfort, and security. But one of its most practical and valuable benefits is the ability to save money. By automating systems and improving energy efficiency, smart homes can reduce electricity, water, and maintenance costs — all while enhancing your everyday life.
In this article, we explore how to use smart home technology to save money, focusing on devices and habits that make the biggest financial difference in both the short and long term.
Why Smart Homes Help You Save
Smart homes are designed to respond to real-time data — from occupancy and usage patterns to temperature changes and appliance needs. This dynamic control allows for more precise resource use, reducing waste and trimming monthly bills.
Key ways smart homes save money:
- Optimize energy use for heating, cooling, and lighting
- Prevent damage through early leak or smoke detection
- Avoid “phantom power” with remote control of electronics
- Reduce water waste through smart irrigation
- Prevent expensive repairs via monitoring and alerts
Let’s break down how specific smart technologies can lower costs across your home.
1. Install a Smart Thermostat
Heating and cooling often account for 40% to 60% of a home’s energy bill. A smart thermostat helps you save by learning your habits, adjusting temperatures efficiently, and avoiding energy waste.
Features that save:
- Auto-adjust when no one is home
- Room-by-room climate control
- Eco-modes and schedule programming
- Weather-based adjustments
- Detailed usage reports
Popular models:
- Google Nest Learning Thermostat
- Ecobee SmartThermostat
- Honeywell T9
Savings estimate: Up to $150 annually for typical households.
2. Use Smart Lighting for Efficiency
Lighting is one of the simplest places to start saving. Smart lighting systems let you control bulbs individually or by group, turn them off remotely, and schedule them by activity or time of day.
Savings features:
- Motion sensors to shut lights off when rooms are empty
- Dimming capabilities to use less electricity
- App control from anywhere
- Scene automation (e.g., “Evening mode”)
- Use of energy-efficient LEDs
Suggested products:
- Philips Hue
- LIFX
- TP-Link Kasa
Pro tip: Replace bulbs in high-traffic areas like kitchens, bathrooms, and hallways first for immediate impact.
3. Use Smart Plugs to Eliminate Phantom Power
Many devices continue to draw electricity even when turned off — this is called phantom load. Smart plugs allow you to cut power completely when devices are not in use.
Examples of phantom power sources:
- TVs and gaming consoles
- Computers and monitors
- Coffee makers and microwaves
- Chargers and printers
Best smart plugs:
- TP-Link Kasa
- Wemo Smart Plug
- Amazon Smart Plug
Savings estimate: Reduce phantom load by 10% or more with automated schedules and remote shutoff.
4. Add Smart Power Strips
Smart power strips work similarly to smart plugs but manage multiple devices at once, perfect for home offices or entertainment centers.
Benefits:
- Group control for several electronics
- Schedule-based on work hours
- Real-time energy monitoring
- Surge protection
Example: Automatically shut down your work desk setup at 6 p.m. every weekday — no more wasted energy overnight.
5. Automate Your Home’s Lighting and Electronics
Through routines and schedules, smart homes turn off devices you forget and reduce overuse automatically.
Routine examples:
- “Away Mode”: Turns off lights, plugs, adjusts thermostat
- “Bedtime Routine”: Dims lights, pauses music, arms security
- “Wake-Up Mode”: Gradually brightens lights and starts coffee maker
Using Google Home, Alexa, or SmartThings, you can customize these actions by time, motion detection, or voice.
Savings result: A house that responds to behavior — not just fixed timers — avoids unnecessary consumption.
6. Improve Water Efficiency With Smart Irrigation
Outdoor watering is a major expense in many regions. Smart irrigation systems reduce this cost by adjusting watering based on weather, soil, and sunlight.
Key features:
- Skip watering after rainfall
- Adjust water flow based on seasons
- Zone-specific scheduling
- Real-time alerts for broken lines or leaks
Top products:
- Rachio 3
- Orbit B-hyve
- Netro Spark
Savings estimate: Cut outdoor water use by 30–50%, especially during hot months.
7. Prevent Expensive Damage With Leak Detectors
Water damage is one of the most expensive and disruptive household issues. Smart leak sensors alert you at the first sign of a leak, giving you time to act before major damage occurs.
Where to place:
- Under sinks
- Near water heaters or washing machines
- In basements or attics
- Inside cabinets with plumbing
Suggested devices:
- Flo by Moen
- Honeywell Lyric
- YoLink Water Sensor
Savings benefit: Avoid costs of mold remediation, structural repair, and high water bills — potentially thousands of dollars in prevented damage.
8. Monitor Appliance Use With Energy Meters
Some smart home platforms include energy usage reports to help you identify the most power-hungry devices.
What you can do:
- Identify which appliances draw the most energy
- Replace old or inefficient devices
- Monitor usage trends over time
- Adjust schedules to off-peak energy hours
Tools to consider:
- Sense Energy Monitor
- Emporia Vue
- SmartThings Energy Dashboard
Financial benefit: Make data-driven choices to swap, upgrade, or manage usage more intelligently.
9. Smart Laundry and Dishwashing = Water + Energy Savings
Many modern dishwashers and washing machines now include smart features that optimize cycles based on load size and soil level.
Key benefits:
- Eco cycles for shorter or lighter loads
- Remote start when electricity is cheapest
- Water usage feedback
- App alerts when cycles are complete (no more rewashing)
Example brands:
- Whirlpool Smart Washers
- Bosch Home Connect
- Samsung SmartThings appliances
10. Reduce Heating/Cooling Loss With Smart Blinds and Sensors
Smart window coverings automatically adjust to sunlight, helping your HVAC system work more efficiently.
How they help:
- Close blinds during hot afternoons
- Open during winter days to let in warmth
- Trigger with thermostat or temperature sensors
- Control manually or by schedule
Products to explore:
- SwitchBot Curtain
- IKEA FYRTUR
- Soma Smart Blinds
Result: More consistent indoor temperatures with less effort — and lower heating/cooling bills.
Bonus: Combine Devices With Automation for Compound Savings
The more your devices communicate and coordinate, the more you save.
Example:
- A motion sensor detects that the house is empty
- The hub turns off lights and electronics
- Thermostat goes into eco mode
- Security system arms
- Water heater reduces temperature until you return
This type of stacked automation reduces energy waste and keeps you protected — without lifting a finger.
Final Thoughts: Saving Smart Is Living Smart
Smart home technology isn’t just about having the latest gadgets — it’s about making intelligent choices that optimize your living space, reduce waste, and put money back in your pocket.
Whether you start small with a smart plug or invest in a full ecosystem of devices, the savings — in both time and money — are real and scalable.
Because in the smartest homes, efficiency is built-in.