3 ways to save £375 by switching to a smart home

The energy price cap increased in October 2022, meaning the average UK energy bill could cost around £2,500 each year, or £208 per month. But switching to a smart home could help to bring your monthly costs down. 

While there is an initial cost, smart home meters and appliances can save you thousands in the long run. We compared the upfront costs to long-term savings to reveal how you could save £375 in the next two years. 

Key findings 

• You could save £375 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 £375 by switching to a smart home 

Smart home feature	Average savings after 2 years (after upfront costs)
Smart Meter	£263.50
Smart Plugs (8)	£52.02
LED Smart Home Bulbs	£60.00
TOTAL	£375.52

1. Smart meters save up to £263.50 and they’re FREE

Getting a smart meter installed could save you £131.75 per year on gas and electricity, according to the government’s Smart Meter Roll-Out Cost-Benefit Analysis. That’s a total of £263.50 after two years. 

The report explains that a smart meter could reduce your gas bills by 2.2%, which is the equivalent of £56.75 annually, plus a 3% reduction in electricity usage - which equals a saving of £75.00 annually (based on the annual price cap of £2,500 for the average household). Together this comes to a total saving of £131.75 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 £52.02 by swapping to smart plugs

Research by British Gas reveals that Brits waste £55 a year on average by leaving appliances on standby. 

If you often 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 £57.98 for eight plugs, which should last for a decade if cared for properly. After two years, that’s a saving of £52.02.

3. Switching to smart bulbs saves up to £60.00

Replacing all your lightbulbs with LED smart bulbs could save you around £30 a year - or £60.00 over two years.   

30 million Brits losing out on long-term energy savings 

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.' 

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. 

Read on to find out what extra help is available for paying energy bills.