How to cut your energy bill with smart home tech: what actually saves money

Key figures

Why energy bills are a priority

In a Pew Research Center survey published on October 8, 2026, 74 % of Americans said they were very concerned about gas and energy prices, up from 43 % in January. Electricity is part of the problem: in May 2026, the U.S. Energy Information Administration (EIA) forecast an average residential price of about 18.2 cents per kilowatt-hour for 2026, nearly 5 % more than in 2025, with the largest increases on the East Coast. Utilities point to fuel costs and grid investments, and the EIA links part of the pressure to fast-growing commercial demand, including data centres.

Smart home devices cannot change the price of a kilowatt-hour, but they can reduce how many you use. Here they are in order of likely impact.

1. A smart thermostat: the biggest lever

Heating and cooling usually take the largest share of a home's energy use, so this is where savings are biggest.

• What the data says: ENERGY STAR certified smart thermostats reduced heating system run time by about 8 % on average in tests across hundreds of homes, according to figures cited by Efficiency Maine.
• The habit that matters most: turning your thermostat back by 7 to 10 °F (about 4 to 6 °C) for eight hours a day can save as much as 10 % a year on heating and cooling, according to energy-saving guidance published by NOPEC. A smart thermostat does this automatically when you sleep or leave home.
• What to look for: the ENERGY STAR label, compatibility with your heating system (check the wiring, especially the "C" wire), occupancy or location detection, and an app that shows your usage.
• Check for rebates: many utilities offer discounts on certified smart thermostats. Look on your utility's website before buying.

2. LED and smart bulbs: an easy win

According to the Department of Energy, LEDs use at least 75 % less energy than incandescent bulbs and last 25 times longer. If you still have old bulbs, replacing them is the quickest saving.

Smart bulbs add schedules, motion-based lighting and remote control, which helps when lights are often left on. But a standard LED already provides most of the saving: buy smart bulbs only where automation is truly useful, such as outdoor lights, hallways or children's rooms.

3. Smart plugs and power strips: cutting standby waste

TVs, consoles, computers and chargers keep drawing power when "off". A smart plug or a smart power strip can cut power completely on a schedule, for example at night.

• Best uses: a home-entertainment corner, a home office, a space heater or a window air conditioner.
• Limits: the plug itself uses a little electricity, and the saving per device is small. Smart plugs pay off mostly when they control several devices or a power-hungry appliance.
• Choose models with energy monitoring: they show how much each device really uses, which helps you decide what to unplug.

4. An energy monitor: finding where the money goes

A whole-home energy monitor, installed in the electrical panel by an electrician, shows real-time consumption and can identify which appliances use the most. Some utilities also offer free usage data through their smart meters and apps. Start there: it costs nothing.

5. Smart scheduling with time-of-use rates

If your utility charges more at peak hours, smart devices can shift usage to cheaper times: run the dishwasher, the washing machine or electric car charging at night, and pre-cool or pre-heat the home before the peak. Check your utility's current rate plans before changing anything.

6. Smarter cooling for single rooms

If you cool only one or two rooms, a modern inverter window air conditioner with an app and schedules can use less energy than older units. See our guide to smart window air conditioners.

What is not worth it

• Buying several gadgets without setting up schedules: savings come from automation, not from the device itself.
• Smart devices that need a separate hub or subscription for basic functions.
• Replacing working LED bulbs with smart bulbs everywhere.

Our checklist

• I checked my utility for rebates and time-of-use plans.
• I installed or programmed a thermostat that lowers the temperature at night and when I am away.
• All my frequently used bulbs are LEDs.
• My TV corner and office are on smart plugs or a switchable power strip.
• I review my usage in my utility's app once a month.

Verdict

The best smart home investment for energy savings is a well-programmed ENERGY STAR thermostat, followed by LED lighting. Smart plugs and energy monitors are useful for finding waste, but their savings are smaller. In a year when energy prices are Americans' top economic worry, a few well-chosen devices and good habits can make a measurable difference. For more on the cost of living, read our analysis of Americans' purchasing power.

This guide is based on public data and published energy-saving guidance. Savings vary with climate, housing and usage.