Last year, 19.6 million smart thermostats were installed in U.S. homes, yet many homeowners miss deeper, integrated energy savings from certified systems. While individual devices promise reduced utility bills, widespread adoption alone does not guarantee an energy-efficient household.
Individual smart home devices offer modest energy savings, but their full potential remains unrealized without a centralized, certified system. Some smart devices even increase overall household energy consumption, creating a disconnect between perceived benefits and actual energy impact.
Based on evolving integrated systems and increasing user literacy, the shift towards certified Smart Home Energy Management Systems (SHEMS) will likely drive significant household energy reduction. Relying solely on individual devices may yield diminishing returns.
Smart Devices: Accessible Savings and Enhanced Control
1. Certified Smart Home Energy Management Systems (SHEMS)
Best for: Homeowners seeking comprehensive, integrated energy optimization across multiple device types and active grid interaction.
Certified SHEMS allow users to control and track products like lighting, home entertainment, appliances, EV chargers, and solar panels from a central system, according to UL. These systems include standby limits, grid communication for demand response, and utility time-of-use pricing integration. An ENERGY STAR SHEMS package requires at minimum an ENERGY STAR certified smart thermostat, lighting, and monitor/control plug loads. SHEMS offers a holistic, intelligent framework, maximizing efficiency and savings beyond what standalone devices can achieve.
| Feature | Individual Smart Devices (e.g. Thermostat) | Certified Smart Home Energy Management Systems (SHEMS) |
|---|---|---|
| Scope of Control | Single device type (e.g. heating/cooling) | Multiple device types (lighting, appliances, EV chargers, solar panels) |
| Energy Optimization | Localized, device-specific savings (e.g. 8% on heating/cooling) | Holistic home energy management, system-wide savings |
| Grid Interaction | Limited or none | Active grid communication for demand response and time-of-use pricing |
| Integration Requirement | Standalone operation | Centralized system requiring minimum ENERGY STAR certified thermostat, lighting, and plug load control |
| Potential Net Impact | Savings may be offset by other smart devices | Designed for verifiable, substantial net energy reductions |
2. Smart Thermostats
Best for: Individuals focused on optimizing heating and cooling costs with automated temperature control.
Smart thermostats reduce energy consumption, saving approximately 8% or $50 per year on heating and cooling bills, according to ENERGY STAR. With 19.6 million installed in the U.S. last year, these devices automatically adjust temperatures when not needed, reports Utility Dive. While some models are affordable at less than $100, states CNET, their potential electricity savings are expected to rise to 11% as technology improves. Advanced models, like the Ecobee Smart Thermostat Premium, offer room-specific control and integrated weather forecasts, demonstrating the evolving capabilities within this category.
3. Smart Lighting (Smart Bulbs)
Best for: Enhancing energy efficiency and convenience through automated and remote lighting control.
Smart lighting reduces energy consumption by allowing remote control or scheduled operation, as noted by Blue Ridge Energy. Smart bulbs are a required component of an ENERGY STAR SHEMS package, underscoring their foundational role in comprehensive energy management systems.
4. Smart Power Strips (Plug Load Control)
Best for: Eliminating "vampire drain" from electronics and managing energy consumption of connected devices.
Smart power strips reduce energy consumption by monitoring and controlling plug loads, according to Blue Ridge Energy. Smart power strips are a required component of an ENERGY STAR SHEMS package, making them essential for a holistic energy management strategy.
5. ENERGY STAR Certified Connected Appliances
Best for: Integrating energy-efficient appliances with smart features for optimized performance and savings.
ENERGY STAR certified connected appliances use less energy while offering new functions due to their integrated smart capabilities. ENERGY STAR certified connected appliances can communicate with other smart home systems, potentially optimizing their operation based on grid conditions or user preferences, thereby extending energy savings beyond their individual efficiency.
6. SHEMS-Controlled EV Chargers
Best for: Electric vehicle owners looking to optimize charging costs and reduce grid strain through smart scheduling.
EV chargers controlled by Certified SHEMS integrate with utility time-of-use pricing, allowing vehicles to charge during off-peak hours, according to UL. Integrating EV chargers with utility time-of-use pricing helps manage energy costs and balances demand on the electrical grid, benefiting both consumers and infrastructure.
7. SHEMS-Controlled Solar Panels
Best for: Homes with solar energy systems aiming for optimized energy generation and consumption management.
Solar panels controlled by Certified SHEMS integrate and optimize renewable energy generation within the home’s overall energy management system, as stated by UL. Solar panels controlled by Certified SHEMS allow for more efficient use of self-generated power and better interaction with the grid, maximizing the return on solar investment.
The Future of Smart Home Energy: Potential and Pitfalls
The future potential for smart home energy savings grows, with individual smart thermostat technology expected to improve. Potential electricity savings per smart thermostat are expected to rise to 11% as technology matures and user literacy grows, states Utility Dive. However, this progress must be viewed against the actual energy consumption of a complete smart home. While many smart devices are marketed for efficiency, common smart home components like smart speakers and cameras actually increase overall household energy use, though they offer other benefits like security and monitoring, according to Blue Ridge Energy. A home adopting a mix of 'smart' devices could easily see savings from one device type negated or even outweighed by increased consumption from another, leading to no net energy benefit despite investment.
The current fragmented smart home market, where millions of smart thermostats are installed without mandatory SHEMS integration, represents a critical missed opportunity for utilities and consumers. Without a comprehensive, certified system, the net energy impact of a 'smart home' could be zero or even negative, as Blue Ridge Energy's findings suggest. Consumers must strategically choose devices that align with sustainability goals, prioritizing integrated systems over standalone solutions to realize true energy efficiency.
By 2026, the push for certified Smart Home Energy Management Systems, like those assessed by UL for ENERGY STAR certification, will likely define the true path to significant energy reduction, moving beyond the fragmented benefits of individual devices.
Understanding Smart Home Certifications
What is an ENERGY STAR SHEMS package?
An ENERGY STAR SHEMS package is a certified bundle of smart home devices and a central system for comprehensive energy management. It requires at minimum an ENERGY STAR certified smart thermostat, smart lighting, and devices to monitor and control plug loads, as specified by ENERGY STAR.
How can smart home technology reduce carbon footprint?
Smart home technology reduces carbon footprint by optimizing energy consumption, particularly through certified Smart Home Energy Management Systems (SHEMS). Certified Smart Home Energy Management Systems (SHEMS) minimize electricity use, integrate with renewables like solar panels, and interact with the grid for demand response, allowing homes to draw power during off-peak, often cleaner, energy periods, as highlighted by UL.
Are smart thermostats worth it for sustainability in 2026?
Smart thermostats offer individual sustainability benefits, saving approximately 8% or $50 annually on heating and cooling bills, according to ENERGY STAR. However, for overall household sustainability, their worth is maximized when integrated into a larger certified Smart Home Energy Management System (SHEMS). Without such integration, their savings can be easily offset by increased energy consumption from other common smart devices like speakers and cameras, as noted by Blue Ridge Energy.
