Home Automation: How to Calculate the Potential Savings

There are a lot of numbers thrown around when it comes to the marketing of home automation devices. It can be a bit confusing to sort through all of the claimed savings percentages. How much money you save will ultimately depend on a variety of factors, some of which you can control, and others that are out of your hands.

When you think about what kind of home automation technology to buy, you might try to apply the company's formulas to your own home. We'll look at how you might reframe the problem to get a better sense of the opportunity behind smart home automation.

Direct Costs

This is often the benefit that people are most interested in. For instance, a smart thermostat is purported to save up to 12% on heating and 15% on cooling, and a smart sprinkler system is said to pay for itself in two years.

These numbers might prompt you to do a little math while thinking about your utility bills and how long it will take to pay off the device. Those who want to take it a step further might wonder how long it will be before they have to replace the device and what kind of maintenance will be required of it during the time they own it.

Indirect Costs

Smart home devices can undoubtedly save you money on utilities by controlling for a variety of factors. For instance, you don't have to run the water for your garden if there's a storm on the horizon, nor do you have to heat a room up if no one's in it.

Homeowners might not want to put all of their stock into the marketing numbers though, as every home is different and every homeowner will have different preferences. Those who like a very warm house will inevitably spend more than those who want it cooler.

The real benefits of a smart home are often some of the less obvious benefits. If your home insurance company knocks a hundred dollars a month off your insurance bill for installing a security system and a smart smoke alarm, this is worth taking into consideration. Or if you're more likely to actually turn the lights off if you have an easy way to do it, then you're better off investing in the technology.

Hypothetical Costs

These costs are a little more abstract, but they're also worth considering. A smart carbon monoxide detector could save your family's life, but this is presuming that a regular carbon monoxide detector wouldn't be enough. While this one is rooted in potential situations, it's worth running a few scenarios before you decide if home automation systems are worth it.

For the most part, it's unusual for homeowners to regret investing in home automation. These devices improve every year with user benefits as the highest priority. As these devices become that much more attuned to customer behavior, they become more efficient at conserving your resources. You might find that it's not only good for your wallet, but for the environment as a whole.