Can smart tech save you money?

Whether you love smart technology or hate it, it’s hard to buy any large or small appliance these days that isn’t a little bit smart. And while nobody needs a fridge that can email them, there are lots of useful smart features and gadgets that can actually save you money every single month. And a little money here and there can really add up over time.

Especially when it comes to your home’s biggest expenses—energy usage, HVAC, and water—smart appliances can help curb your usage at times you will barely even notice. While it’s probably not worth replacing everything in your home right at this moment, even something as simple as a smart plug can pay for itself right away, putting you on the path to a smarter, more affordable home.

Let’s get into it.

How smart appliances actually save energy

Smart appliances aren’t magic; they’re just connected machines that give you control or have algorithms programmed in ways to create efficiencies and help you save time and money. They don’t make it cost less money to heat your home or wash your clothes, but they do help you make better choices (or do it for you) in ways that add up quickly.

Take smart plugs, for example. The break-even analysis for any smart tech purchase will vary, but I use a smart plug in my basement to control my wall heater. It’s a 1500W unit, and in the winter I usually run it for a few hours per day as needed. With my smart plug, I can make sure it’s off at night and when I leave the house without having to remember to turn it off manually. If I use it even 1 hour less per day, that’s $8 in savings per month, which quickly covers the cost of the smart plug itself.

Appliances and thermostats with built-in smart tech can be even more cost-efficient, since they can run at off-peak hours or learn from your habits. A smart thermostat or smart washer/dryer combo could each cut your energy usage by 10% to 15% just by optimizing when they run.

Here’s a rundown of typical cost savings with different kinds of smart appliances:

Typical cost savings of common smart appliances

Device	Smart vs. standard	Avg. savings per year	Savings percent	Notes
Smart thermostat	$150 vs. $100 (basic)	$120–$150	10% to 15%	Based on heating and cooling habits
Smart washer	$900 vs. $600	$20–$35	10% to 15%	Mostly from cold cycles and off-peak use
Smart dryer	$1,000 vs. $700	$25–$50	15% to 20%	Heat pump and scheduling combo
Smart fridge	$2,000 vs. $1,200	$10–$20	5% to 10%	Minor direct savings; more convenience
Smart plug and power strip	$25	$10–$15	—	Cuts vampire power from devices

Note that while the costs listed are typical retail prices, many affordable smart devices, such as bulbs, plugs, power strips, and thermostats, are likely available from your energy provider at a huge discount.

While they’re happy to take your money for being inefficient, they’re also a great source of subsidized tech that will start saving you money even faster.

How to maximize smart tech savings

The key to getting the most out of smart tech is answering two simple questions. First, “Which tech do you want to be smart?” And second, “Which systems in your house cost you the most money?”

For example, a smart light bulb can be super convenient, but a genius LED and a dumb LED are not going to cost you a lot of money either way. Likewise, a smart air conditioner can be both convenient and cost-efficient, so you can have it off when you’re out of the house for the day but cool things down only when you’re on the way back from the beach instead of leaving it on all day.

For many smart devices, the simplest approach is simply to have the option to use them less when you don’t need them. For example, your heat pump turning on less when you’re asleep or at work will save you a shocking amount of money, since it costs so much to run every month. And while a new heat pump would cost you thousands, just swapping out a thermostat can make any HVAC system more intelligent without costing you much at all.

Our advice is to start where your utility bills are the largest, figure out what devices cause that usage, and then use cheap, smart solutions like plugs, thermostats, and sprinkler controllers to give you more control over when and where your electricity, fuel, and water are getting used up.

The hidden benefits beyond saving

Smart tech is often worth dealing with because of how much money you can save, but it can also just make your life easier. For example, I use a half-dozen smart plugs around my home to control hard-to-reach devices—my Christmas tree, my outdoor lights, the lamps in my office, my heater, etc. I can also turn the lights on when I’m not home, so my dog has light, or it just always looks like there are people present.

There are also times when smart tech can really save you from a life-changing headache. Smart smoke detectors and carbon monoxide alarms can alert you if there is danger in your home and you’re out of earshot. I also use cheap smart cameras throughout my house to monitor when packages arrive or when people show up at the door.

Smart water leak detectors can help avert a major disaster. Twice in my home, I’ve been lucky enough to see a leak immediately after it occurred—once from my roof and once from my laundry room—both of which would have flooded my entire basement and cost me thousands in repairs if I hadn’t been immediately aware. I now have smart water leak detectors in those areas to let me know if something similar happens and give me peace of mind when it doesn’t.

Pitfalls and what to watch out for

While smart tech can be a great addition to how you manage your home, there are some things to keep in mind. The first is that it’s rarely worth replacing a working large appliance with a new one that has smart features. If your current fridge is still going strong, a smart fridge will likely cost you more than it saves you. Focus on the affordable swaps first: plugs, sensors, and thermostats.

You also want to make sure that whatever tech you buy is compatible with a major smart platform your whole family can use, which most smart devices will be. For example, at my home, we have settled on Alexa-compatible devices because my kids are used to asking Alexa to turn lights on and off, to set timers, and to make fart noises. Can other smart platforms make fart noises? I don’t even know, and I don’t think the kids would agree to switch if they didn’t.

Our last tip is to start small. A smart thermostat is a great first step, though if figuring out whether you have a C wire makes you queasy, you may want to get a handy person to help you.

Don’t worry! You can start even smaller. An Echo dot and a smart plug can get you rolling, giving you easy control over a heater or lamp and the ability to set timers, play music, or, if you have a sense of humor like my kids, make fart noises. Go nuts, it’s your house.