Millions of Americans are investing in smart-home technology, hoping to lower their utility bills and live more efficiently. But according to Corey Gilgan, owner of Oregon Generators, too many homeowners are making basic mistakes that turn “smart” houses into energy hogs.
“I see the same errors over and over again,” Gilgan explains. “People think buying smart devices automatically makes their home efficient, but without proper installation and setup, you can end up worse off than before.”
Gilgan says these are the six most common mistakes that cost homeowners hundreds of dollars every year:
1. Placing thermostats in the wrong spot
A thermostat near a sunny window or heat vent gets false readings and makes your AC or heat run nonstop. Installing it on an interior wall away from drafts can reduce cooling costs by up to 20 percent.
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2. Failing to sync devices
Your smart blinds, thermostat, and sensors should work together—not against each other. Coordinating routines (like closing blinds when the AC kicks on) prevents wasted energy.
3. Ignoring energy-saving settings
Many devices ship with eco-modes off. Taking a few minutes to enable sleep schedules, power-saving modes, and unused feature shutoffs can make a big difference.
4. Misusing smart plugs
Plugging a whole power strip into one smart plug means every device still draws phantom power. Instead, use them for single devices like a TV or gaming console.
5. “Set it and forget it”
Smart devices need seasonal adjustments. Heating and cooling schedules should be updated throughout the year to match changing daylight and occupancy patterns.
6. Skipping software updates
Firmware updates often include efficiency improvements. Gilgan notes some homes see up to 30 percent better performance after updating devices.
“The biggest misconception is that ‘smart’ equals ‘efficient,’” Gilgan says. “These devices are only as smart as the person setting them up. Done right, they can cut bills by 20 to 30 percent. Done wrong, they’re just expensive toys that cost you money.”
Alesandra (Alice) Dubin is an award-winning travel and lifestyle journalist. She has a BA from UC Berkeley and an MA in journalism from NYU. She lives in Los Angeles with her husband and their twins.