Mobile phone smart home app with a modern living room

3 ways to save £426 by switching to a smart home

author: Fiona Peake

By Fiona Peake

With the continuing energy crisis, gas and electricity bills are expected to soar.

The average UK energy bill now costs £1,295 each year, or £108 per month according to government statistics. But switching to a smart home could bring your monthly costs down.

While there is an initial cost, smart home meters and appliances can save you thousands in the long run. Ocean Finance compared the upfront costs to long-term savings to reveal how you could save £426 in the next two years.

Key findings

  • You can save £426 in two years by switching to a smart home, even with upfront costs.
  • Google searches for ‘energy prices’ reach their highest point in five years.
  • 30 million Brits lose out on long-term energy savings by not switching to a free smart meter, according to government statistics.

Three ways to save £426 by switching to a smart home

Smart Home Feature

Average Upfront Cost

Average Savings After 2 Years (Minus Upfront Costs)

Smart Meter

FREE

£73.86

Smart Plugs (9)

£59.97

£100.03

LED Smart Home Bulbs (20)

£161.39

£252.61

TOTAL

£221.36

£426.50

1. Smart meters save up to £73.86 and they’re FREE

Getting a smart meter installed could save you £36.93 per year on gas and electricity, according to the government’s Smart Meter Roll-Out Cost-Benefit Analysis. That’s a total of £73.86 after two years.

The report explains a smart meter could reduce your gas bills by 2.7%, which is the equivalent of £17.25 annually, plus a 3% reduction in electricity usage - which equals a saving of £19.68 annually. Together this comes to a total saving of £36.93 per year.

Energy suppliers should install your smart meter for free, so it’s a great way to start saving on your bills.

2. Save £100.03 by swapping to smart plugs

Research by The Energy Savings Trust reveals that Brits waste £80 a year on average by leaving appliances on standby.

If you forget to properly turn off appliances like your TV, laptop or gaming console, you could save money with smart plugs. You can simply put smart plugs into your wall sockets and then control the power using your phone.

Smart plugs cost around £59.97 for nine plugs, which should last for a decade if cared for properly. After two years, that’s a saving of £100.03.

3. Switching to smart bulbs saves up to £252.61

Research shows that incandescent bulbs cost around £12.40 to buy and power annually, compared to just £2.05 for an LED smart bulb. Saving £10.35 per bulb, a house with 20 bulbs could save £207 every year by opting for energy-efficient lighting.

Even with the upfront costs (approximately £161.39 to buy 20 smart bulbs), after two years you could save up to £252.61 by using smart lighting.

Google searches for ‘energy prices’ reach their highest point in five years

As the UK’s energy crisis continues, it’s unsurprising that Google searches for ‘energy prices’ have reached their highest point in five years.

By September 2021, Google searches reached 6,600 per month, a huge 125,400% increase when compared to 2020 (1,900 searches);

undefined

30 million Brits losing out on long-term energy savings

The most recent GOV.UK statistics show that out of 55 million energy meters installed across the UK, less than half of these (46%) are smart or advanced. That means 30 million Brits (54%) are losing out on long-term energy savings by not switching to a smart meter.

The government’s Cost-Benefit Analysis says, ‘the earlier a household receives a smart meter, the greater the level of benefit they are expected to realise will be.'

Discover more top tips to reduce your energy bills. One way to get a better deal on your energy bills is to improve your credit score, as those with a better credit history are often offered cheaper rates. Learn more about building your score with a credit card online.

Disclaimer: All information and links are correct at the time of publishing.

author: Fiona Peake

By Fiona Peake

BACK TO BLOG HOME
Mobile phone smart home app with a modern living room Mobile phone smart home app with a modern living room