Homeowners and new buyers are turning to smart energy systems to trim utility bills and reduce negative environmental impact.
These systems use sensors, AI, and real-time data to monitor and optimize energy use, adjusting lighting, temperature, and appliances based on occupancy and natural light.
How Smart Energy Systems Work
Smart energy systems rely on a network of devices, including smart thermostats, light sensors, motion detectors, and AI-enabled hubs that work together to adjust energy use dynamically.
For example, lights can dim in response to sunlight, or heating and cooling can scale back when no one is home.
AI technology enhances performance by learning household patterns and habits, anticipating the occupants’ needs.
Energy Costs vs. Savings
Despite requiring constant connectivity and device communication, smart systems themselves consume minimal energy.
On average, homes that have smart energy systems save 10-25 percent on heating and cooling, depending on the extent of the system.
Individual devices on the systems have different costs. For example, the average cost of:
Smart Thermostats: usually $100-$250
Energy Monitors: usually $200-$500
Smart Lighting: usually $10-$50 (for whole-home installation, this number can jump to $1000-$5000)
“The ongoing energy costs associated with smart home tech are very minimal; however, you may see some expenses related to subscriptions to different analytic and monitoring services offered by the manufacturer,” said Kortney Paul, CEO and president of Ideal Partners. “Generally speaking, the amount of money you save by using these devices will more than make up for the minimal expense associated with their operation.”
Cost of Installation: New Build vs. Retrofit
New construction offers the most efficient path to integration. Builders can hardwire systems, optimize layout, and future-proof for emerging tech at relatively low cost.
Estimated cost: $3,000–$7,000
Advantages: Seamless integration, lower labor costs, better scalability
Retrofitting, while feasible, is more labor-intensive and costly.
Estimated cost: $5,000–$12,000
Advantages: Immediate energy improvements, lower upfront disruption
“There’s not much difference in the cost of adding smart systems to a new build vs. a remodel, as the cost of the system and associated appliances will be the same,” Paul said. “That said, installing at the time of a new build may save you a little money on labor, and you will have greater control over where the systems are installed and their aesthetics.”
Bottom Line
While smart energy systems do require some energy and financial investment, the long-term savings and sustainability benefits can outweigh the costs, especially when systems are properly planned and utilized. For new construction, early integration is the most cost-effective route.
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