The smart home dilemma: More devices, higher utility costs | Allconnect

Smart devices can make big promises.Set-it-and-forget-it thermostats that can help lower your energy bill.Dishwashers and washing machines that auto-select the most efficient settings.

Smart lights with voice control and dimmer settings to increase bulb longevity.  But, does all this efficiency and automation equal real savings on your utility bills? While a plethora of smart devices are marketed as energy-saving, the truth is that these constantly connected devices may be using more energy — and increasing your internet costs — than the ‘dumb’ manual versions ever did.  Our broadband and energy expert explains which smart home devices are worth it and how to save money on your broadband and utility bills with savvy smart home management.  In this article: Are smart home devices worth it? Do smart home devices save money? Do smart homes need a faster internet connection?  Smart home devices: savings vs.convenience Expert take: the best smart devices for you How to save money with your smart home devices  Devices to dollars: smart homes’ hidden costs Smart home device use Smart home costs FAQs Are smart home devices worth it?  One 2022 study found that “smart home[s] participating in power demand response can reduce peak load by 29.3–49.3%.” However, anecdotal evidence on the r/smarthome subreddit tells a different story, where energy-vampire devices lead to escalating electricity bills.Smart home enthusiasts rave about the convenience of their automated habitats, but adding extra kilowatt-consuming gadgets can lead to a shock when you get your electric bill if too many devices are stuck in standby mode.  Do smart home devices save money? The secret to saving money with smart home devices is to avoid getting trapped in the efficiency paradox, where the belief of increased efficiency actually ends up leading to higher energy consumption.  A 2021 study revealed that while “Google Nest claims that consumers can, on average, save between 10-12% on heating consumption and ~15% on cooling consumption… research conducted in the UK found evidence for energy savings of only around 5.8%.” This difference equated to an average annual savings of around $55, instead of the marketed savings of up to $145 per year.

Do smart homes need a faster internet connection?  The internet speed you need in your home increases with the more Wi-Fi-connected devices you have.Adding smart devices could increase the cost of your internet bill if you end up needing to upgrade your plan.But not all smart devices use Wi-Fi.

Some smart devices, like coffee makers or small appliances, connect with Bluetooth, leaving Wi-Fi unaffected.  The devices to watch out for are the ones with an always-on connection.Devices like security systems and smart assistants are constantly uploading and downloading data, using both energy and internet bandwidth.If you’re considering an internet upgrade, try these high-speed internet service providers (ISPs) in your area.  Smart home devices: savings vs.

convenience There are two general categories of smart home devices: those that offer convenience, and those meant to optimize performance.Some devices, like smart lights, may fall into either category, depending on how you use them.  Smart home devices by purpose Convenience Smart security system Smart speaker/assistant Video doorbells Smart door locks Efficiency Smart thermostat Smart plugs Smart appliances (refrigerator, washing machine, dishwasher) Smart sprinklers/lawn irrigation Our expert take If saving money and energy are your main goals: Make sure you’re investing in home automation devices that focus on working smarter, not harder.Find home Wi-Fi that supports your smart home network while staying within your budget.  If convenience is your primary motivation: Keep in mind that comfort devices remain in standby mode, so they’re always ready when you need them, but this constant energy-draw can equal higher power bills.

How to save money with your smart home devices  Keeping your broadband and utility bills low depends on making smarter smart home choices that will save you money and time.The operational costs of your utilities and home internet are affected by phantom loads* and inefficient device management.Ensure that your smart home setup works for, not against, you with these easy money-saving tips.  *A phantom load refers to the energy consumption of a device not in use or in standby mode.

Examples include a cell phone charger plugged in but not in use, a constantly plugged-in toaster oven or a motion-sensor light.Devices to dollars: smart homes’ hidden costs With utility bills on the rise, knowing the connection between your smart home and your increasing home costs is crucial.The are direct and indirect costs associated with smart home management.

Device systems with multiple connection points, such as an integrated lighting setup, can directly increase your kilowatt-hour consumption.  However, indirect costs add up over time too.These hidden costs can include: Power consumption from ‘always-on’ energy vampire devices Increased cooling since a warmer home is a byproduct of additional devices Replacing router and modem hardware over the products’ lifespan Adding Wi-Fi mesh system, boosters or extenders to handle an increased number of devices Smart home device use The best smart home devices are the ones that are built to last and serve a useful purpose in your home.  Save money on utility bills by optimizing device settings and unplugging nonessential devices when you are away from home for an extended period of time.Search for internet deals with speeds that support your devices and internet use to prevent lag or connection issues.  Smart home costs FAQs How do smart home devices work? Smart home devices work by connecting to the cloud using your home Wi-Fi and networking devices together either with Wi-Fi or Bluetooth.

Do smart devices save energy? Some smart home devices are designed to save energy, while others are designed to save you time.If your focus is on energy savings, search for smart home energy labeling when shopping, such as Energy Star-certified products that meet government standards for energy efficiency.How can I simplify my smart home? A smart home management system allows you to control all your devices from one hub or app.

Keep in mind when purchasing smart devices that it will be easier to set up a consolidated control hub if you stay within the same family of brands (e.g., Apple, Google, Samsung, etc.) What to read next Read more Featured Hidden costs of a connected home Camryn Smith — 6 min read Featured How to get internet without electricity in 2025 Camryn Smith — 5 min read Featured Americans are getting 289 Mbps in download speed, but are you? Robin Layton — 5 min read Latest Thursday, November 20, 2025 The smart home dilemma: More devices, higher utility costs Lisa Iscrupe — 4 min read Tuesday, November 18, 2025 Hidden costs of a connected home Camryn Smith — 6 min read Friday, November 7, 2025 How to get internet without electricity in 2025 Camryn Smith — 5 min read