--- title: "Do smart home devices save money?" description: "Do smart home devices save money? Which can lower energy bills, which mostly add cost, how to work out the payback and how to avoid gadgets you don't need." author: "Wealtie Team" published: 2026-11-13 updated: 2026-11-13 category: "Saving" canonical: https://wealtie.com/blog/smart-home-devices-worth-it --- # Do smart home devices save money? Do smart home devices save money? Some do, like smart thermostats and plugs that cut wasted energy, but many mostly add convenience and cost, and in a worked example a 120 smart thermostat saves about 60 a year, paying back in two years. ## Key takeaways - Some smart home devices save money, mainly by cutting wasted energy. - In a worked example, a 120 smart thermostat saves about 60 a year, paying back in two years. - Many smart gadgets add convenience but not savings. - Work out the payback before buying, and use the free settings you already have first. ## Do smart home devices save money? Some do, but many don't. Smart home devices connect to your phone or a hub, letting you control heating, lights, plugs and appliances remotely or on schedules. Devices that cut wasted energy, like smart thermostats and plugs, can lower bills. Others, like smart speakers, doorbells or lights, mostly add convenience, and some add subscription costs. The question to ask is whether a device will change how much energy you use, and by how much. Devices that make it easier to switch things off tend to save; devices that add features tend to cost. ## Which devices can save money? Here's a worked example of costs and yearly savings, in round numbers that work in any currency: ![Smart devices: cost and yearly saving. Smart thermostat cost: 120, Thermostat yearly saving: 60, Smart plugs cost, set of 4: 40, Plugs yearly saving: 20.](https://us-1-s3.polodev.net/wealtie-blog-media/posts/2026/11/smart-devices-cost-and-yearly-saving-smart-thermostat-cost-34783da786.webp "Source: Worked example in round numbers") In this example, a 120 smart thermostat saves about 60 a year by heating only when needed, paying for itself in about two years. A set of four smart plugs costing 40 saves about 20 a year by switching off devices left on standby. Your own savings depend on your home, your habits and your energy prices. Households that already manage heating carefully will see smaller savings. ### Smart thermostats These let you set heating schedules, control heating from your phone and sometimes heat only the rooms you use. They save the most for people who are out at irregular times or who often leave heating on by accident. If you already use your heating timer well, the saving may be smaller. Some models need professional installation, which adds to the cost and lengthens the payback. ### Smart plugs These switch devices on and off on a schedule or remotely. They're useful for appliances left on standby or things you forget to turn off. Some show how much energy a device uses, which can reveal surprising costs. Even using one for a few weeks to measure appliances can show where to save, after which you can move it elsewhere. ## Which devices mostly add cost? Smart speakers, video doorbells, smart lights and connected appliances can be useful, but they rarely save money on their own. Some need a monthly subscription for full features, like video storage. Before buying, check the total cost over a few years, including any subscriptions. [How to cut subscription costs](https://wealtie.com/blog/cut-subscription-costs) helps you review these. Many devices still work without the subscription, with fewer features, so check before paying. ### Smart lights Smart bulbs cost more than regular efficient bulbs. Efficient bulbs alone deliver most of the saving; the smart features add convenience, not much extra saving. ## How do you work out the payback? Divide the cost of the device by the yearly saving you expect. If a device costs 120 and saves 60 a year, it pays back in two years. If it saves 10 a year, it would take twelve years, longer than many devices last. Be realistic about savings: claims on packaging assume particular habits. Checking your bills for a few months before and after shows the real figure. ### Energy monitors An energy monitor, sometimes provided free by suppliers, shows how much electricity your home uses in real time. Watching it when you turn appliances on and off is an easy way to find big users. Many people change habits from seeing the numbers. ## What can you do for free first? Many savings need no gadgets. Use the timer on your existing heating, turn devices off at the wall, lower the thermostat by a degree and draught-proof doors and windows. [How to save money on heating](https://wealtie.com/blog/save-money-on-heating) and [how to save money on your electric bill](https://wealtie.com/blog/save-money-on-electric-bill) cover free and low-cost changes. A smart device makes sense once you've done these and want more control. Starting with one device, and seeing whether it saves, avoids buying a whole system that doesn't. ## What about privacy and security? Smart devices collect data and connect to the internet. Choose devices from reputable makers that receive security updates, change default passwords and check privacy settings. A cheap device that stops getting updates can become a security risk. Putting smart devices on a separate guest network, if your router allows it, adds a layer of protection. ## How do you track energy savings in Wealtie? Set up energy bills as recurring transactions with the [bill tracker](https://wealtie.com/features/recurring), and update the amounts as they change. Comparing bills in your [expense categories](https://wealtie.com/features/categories) before and after installing a device shows whether it's saving what you expected. ## Questions people ask ### Do smart home devices save money? Some do, like smart thermostats and plugs that cut wasted energy. Many others mostly add convenience. ### Is a smart thermostat worth it? Often, if you're out at irregular times. In a worked example, a 120 thermostat saves about 60 a year. ### Do smart plugs save energy? They can, by switching off devices on standby. In a worked example, four plugs save about 20 a year. ### How do I know if a smart device will pay for itself? Divide the cost by the expected yearly saving, and be realistic about the saving. *This article is general information, not financial, tax or legal advice. Your situation is your own; check the numbers that apply to you before you act on them.*