What Is the True Cost of Owning Smart Home Appliances?

The concept of a “smart home appliances” that can be controlled and automated through internet-connected devices has rapidly grown in popularity over the past decade. With smart speakers like Alexa and Google Home leading the way, there are now a vast array of smart devices and appliances available to consumers who want to make their homes smarter. But what is the true cost of building and maintaining a fully automated, smart home? This definitive guide will provide an in-depth look at the various expenses involved so you can determine if a smart home is truly worth the investment.

Key Takeaways

• Initial costs for individual smart devices and appliances can range from $50 to $3,000+
• Installation and setup costs vary significantly for DIY versus professionally installed systems
• Ongoing costs include monthly fees, subscriptions, maintenance, and increased energy usage
• The total cost for a basic smart home system starts around $500, while luxury systems can cost $10,000+
• Factors like home size, number of devices, and types of features impact the overall cost
• Potential savings from energy efficiency and insurance discounts can offset some costs

The Basics of Smart Home Automation

Home automation refers to using internet-connected devices and systems to monitor, control, and automate various functions in the home such as lighting, temperature, security, entertainment, and more. The “smart” components like wireless cameras, smart thermostats, and voice assistants allow everything to be managed remotely via smartphone apps or voice commands. Key elements of smart home technology include:

• Smart home hub – The central device that connects all devices and allows for remote access
• Compatible smart devices and appliances
• Mobile apps to control devices and automation routines
• Voice control through smart speakers/assistants
• Cloud services to store data and enable remote access

Some of the most popular smart home products include:

• Smart speakers like Amazon Echo and Google Home
• Smart lightbulbs, switches, and lighting systems
• Smart thermostats like Nest that can be programmed and controlled remotely
• Smart doorbells and security cameras for home monitoring
• Smart locks on doors and windows that can be locked/unlocked remotely
• Smart plugs to make ‘dumb’ appliances controllable and automated

These smart devices connect with each other and the home hub via wireless protocols like WiFi, Zigbee, Z-Wave, Bluetooth, and more. This allows them to be controlled remotely through voice commands, smartphone apps, or automations programmed through IFTTT (If This Then That) applets.

Smart Home Devices and Appliances

There is now a vast array of smart products available to consumers who want to upgrade their homes. Here is an overview of some of the most popular categories:

Smart Speakers like Amazon Echo and Google Home allow for voice control of other smart devices and home automation capabilities. Pricing ranges from $50 for basic models up to $200 or more for advanced versions.

Smart Lighting includes smart light bulbs that can be remotely controlled and programmed, smart switches to control lighting circuits, and smart dimmers. Individual bulbs range from $15-$50 per bulb, while switches and dimmers cost $25-$100 each depending on features.

Smart Thermostats like the Nest Learning Thermostat use built-in sensors, learning algorithms, and WiFi connectivity to optimize heating and cooling. Costs range from $100 to $250.

Smart Security Systems provide wireless security cameras, motion sensors, smart locks, and video doorbells. Prices range widely based on features, but expect $50 to $300 per device installed. Monthly fees for professional monitoring/storage often apply.

Smart Plugs and Outlets allow you to control lamps, appliances, and other plug-in devices remotely. Basic models start around $15-$25 per plug, going up to $50 or more for advanced versions.

Smart Appliances like refrigerators, ovens, washers, and more are coming with wifi connectivity and app control built-in. They carry large premiums though, often costing $500 to $3,000+ more than conventional models.

Types of Smart Home Systems

There are a few key considerations when selecting a smart home platform:

Wireless vs. Wired – Wireless systems using protocols like Zigbee and Z-Wave are easier for DIY installation, while wired systems provide more reliable connectivity.

DIY vs. Professionally Installed – DIY systems allow for customization and potentially lower upfront costs, while professional installation provides expert set-up and integration.

Centralized vs. Decentralized – Centralized systems use a single home hub to connect devices vs. decentralized systems that allow devices to connect independently.

Compatibility – Smart home devices and systems may not work together, so it’s important to ensure compatibility before purchasing.

Choosing devices from a single brand often provides the most seamless connectivity, while mixing and matching brands may require extra steps to integrate. Most major players like Amazon, Google Nest, and Samsung SmartThings offer their own proprietary smart home platforms. There are also more device-agnostic systems like Home Assistant that allow you to integrate different devices and brands.

The True Cost of Owning a Smart Home

While the promise of convenience and efficiency is appealing, smart home systems require significant upfront investment and ongoing costs. It’s important to understand the true cost of ownership before diving in.

Initial Costs

The upfront equipment, device, and installation costs can add up quickly, especially if outfitting an entire house. Here are some typical price ranges for key smart home components:

• Smart home hub/controller – $100 to $300
• Smart speakers – $50 to $200 per speaker
• Smart lightbulbs – $15 to $50 per bulb
• Smart switches/outlets – $25 to $100 per switch
• Smart thermostat – $100 to $250
• Smart doorbell – $100 to $300
• Smart security cameras – $50 to $300 per camera
• Smart locks – $100 to $300 per lock

Costs for individual devices vary widely based on features, brand, and quality. A basic starter kit may run just $500, while a whole home installation with top-end gear can cost over $10,000.

Installation and Setup Costs

Installation costs also factor in, especially if hardwiring a wired smart home system. DIY installation of wireless devices and systems generally only requires simple tools and hardware. But professional installation by an electrician or low-voltage specialist typically runs $50 to $150 per hour, and potentially higher for complex jobs requiring wiring or repairs. The cost of any additional electrical work, wiring, or wall repair would also add to the total.

Ongoing Costs

In addition to the initial equipment and installation costs, smart homes require a series of ongoing subscriptions and fees. These include:

• Monthly monitoring/storage fees – For video doorbell and security camera footage to be stored in the cloud and monitored 24/7, companies charge an average of $10 to $30 per month.
• Smart home platform fees – Some smart home hubs and apps charge a monthly fee for remote access and features. For example, Vivint charges $30/month for smart home monitoring.
• Increased energy costs – Despite energy efficiency gains from smart thermostats and appliances, having more always-connected devices may increase electric bills. Energy costs can be 10% or more higher.
• Maintenance and repairs – Like any appliance, smart home devices can break down over time, requiring service calls or replacement. Lifespans vary greatly by product.

Calculating the Total Cost of Ownership

Given the diversity of options and potential combinations, the total cost of a smart home can vary dramatically. Here are some factors that contribute to the overall price tag:

• Size of home being automated
• Number of rooms/systems to outfit
• Types of devices and features selected
• Do-It-Yourself vs. professional installation
• Energy usage from increased device load
• Ongoing fees for monitoring and maintenance

Here are some examples of estimated costs for typical smart home configurations:

Basic Smart Home – Hub, a few lightbulbs, thermostat, smart speaker: $500 – $2,000

Mid-Range Smart Home – Hub, multi-room smart lighting, thermostat, doorbell, security cameras, smart locks, smart speaker, entertainment: $2,000 – $10,000

Luxury Smart Home – Professionally installed wired system with full security, climate, lighting, appliance control, and entertainment automation: $10,000+

Costs ultimately depend on the specific devices selected and which parts of the home you automate. You can save significantly by automating room-by-room over time, rather than doing everything at once. Shop around for deals on equipment bundles and professional installation for additional savings.

Potential Cost Savings and Benefits

Depending on your usage, smart home technology can potentially save money in the long run through:

• Energy savings – Smart thermostats can cut HVAC costs 10-15%. Smart lighting saves electricity. Smart appliances optimize energy use.
• Insurance discounts – Some insurers offer 5% to 20% discounts for professionally monitored security systems.
• Increased home value – Smart home upgrades can boost resale value 3% to 5% on average.
• Convenience – Remote access, automation, and voice control provides lifestyle conveniences that are hard to quantify.

Conclusion

While smart homes require significant upfront investment and ongoing costs, the convenience and efficiency gains can make it worthwhile, depending on your budget and needs. Carefully factor in all equipment, installation, and lifetime costs before diving in to determine if the expense will pay off through utility savings, insurance discounts, increased home value, and enhanced quality of life. Weigh the costs against the benefits before outfitting your home with the latest smart home technology.