Direct Answer
How do smart homes help save energy?
A smart home saves energy through switching off, scheduling, and adjusting the smart devices that consume the most power: air conditioners, water heaters, and appliances left on standby without the homeowner noticing. The biggest savings derive from air conditioner control and moving heavy loads to TNB’s cheaper off-peak hours. Automating LED lights doesn’t save much, because LEDs use little power.
Have you ever heard homeowners in your property units complain about higher electricity bills?
In fact, paying for a huge electricity bill is the biggest concern for modern homeowners today.
They’re all looking for efficient ways to cut energy use.
Imagine asking 10 homeowners who use home automation devices if their electricity bill went down. No doubt, you’ll get 10 distinctive answers.
Indeed, some say they lower their energy use by a fifth each month. Others say the savings barely cover a teh tarik in Malaysia. Both groups are telling the truth. The difference lies in what smart home technologies automate.
Throughout this guide, ‘How do smart homes help save energy’, we’ll walk through how a smart home helps save energy in a Malaysian home, where the aircond dominates the bill. You’ll learn which smart home devices cut your bill, which ones barely move it, and how to use TNB’s Time-of-Use tariff to pay less for the same power usage.
If this topic is new to you, start with our guide, ‘What is smart home automation’.
What is Smart Home Energy Management? (& How Do Smart Homes Help Save Energy?)
Direct Answer
Smart home energy management is a system that connects the smart home hub, devices, and sensors, so the homeowner’s home consumes power only when and where it’s needed. Smart home energy management works in 3 approaches: automation, remote control, and monitoring.
A regular home requires the owner to turn a switch on and off. A smart home acts on rules you set, like “switch off the air conditioner when the bedroom is empty for 15 minutes.”
The 3 ways a smart home cuts energy use
- Automation. Devices switch on and off by schedule, sensor, or tariff time, without the homeowner having to remember to control the switches.
- Remote control. Homeowners can switch smart devices off from their smartphone anytime, such as when they leave home and forget the water heater.
- Monitoring. Energy data displayed on the management system shows which smart devices use the most energy, so the homeowner knows what actions to take to reduce the load.
How the smart home hub ties devices together
The smart home hub is the main controller that connects your devices and runs the specific rules. The main hub allows a motion sensor, a door sensor, lights, and an air conditioner controller to work as one system.
Without a smart home hub, each device relies on a different app, and your resident “leave home” routine requires multiple taps across different apps.
That said, Homeowners only need one mobile app, like Raizo Smart, to control all connected smart devices with a single tap.
Plus, AI voice assistants like Google Home and Alexa can run on top of the smart home hub. For example, the prompt, “Hey Google, I’m leaving,” can switch off every light and curtain instantly.
Smart automation vs manual habits
Homeowners can switch off smart devices themselves to save energy. Unfortunately, most people forget to turn off the switches when they are rushing to work. That’s why smart home automation exists: it helps people keep the habit of switching off lights on days when they’re exhausted, rushing out, or away on holiday.
A smart home plays a small role if you switch off every device manually. However, a smart home comes into play when your family often leaves lights and air conditioners running when they go out.
Method | What it does | Example | Energy impact |
|---|---|---|---|
Automation | Runs devices by schedule, sensor or tariff | Air conditioner switches off when the room is empty | High |
Remote control | Lets you act from anywhere | Switch off the water heater from the airport | Medium |
Monitoring | Shows where power goes | Smart plug shows your TV draws 160W | Medium (it guides your next move) |
What Uses the Most Energy in a Malaysian Home?
Direct Answer
The air conditioner is the biggest electricity load in most Malaysian homes, followed by water heaters, refrigerators, and lighting. Standby power from TVs, set-top boxes, and chargers adds a smaller load but drains constantly.
Why the air conditioner dominates in a hot, humid climate
Malaysia is hot and humid year-round, without distinct seasons. Thus, the air conditioner works hard every day of the year, without a winter break. A study by Kubota and colleagues on Malaysian residential buildings of Malaysia found that air conditioning accounts for a major share of Malaysian households’ electricity use.
In effect, a Malaysian home’s energy plan begins with the air conditioner.
The hidden drain of standby power
TVs, soundbars, game consoles, Astro boxes, and phones continue to consume power, even when the devices are“off.” Each device draws a little energy. But the load adds up when entertainment technology runs 24 hours a day, 365 days a year.
Start with a smart plug energy audit
Before purchasing and installing any smart home automation device, measure the energy first.
An energy-monitoring smart plug shows how many watts a smart device draws.
Here’s a case study on Reddit. One homeowner did the audit with every smart device in his flat and found:
- His TV took up 160W when on. Switching to eco mode cut that to 60W.
- His media setup consumed 14 to 16W on standby, all day. He scheduled the plug to lower power at night and when he’s out.
- His laptop charger drew 30 to 120W when plugged in.
After 2 months, his monthly energy usage dropped by 33 units from an average of 170, about 19%. He expected his 2 second-hand plugs to pay for themselves within a year.
His own words: “Small things make a big difference.”.
Appliance | Typical draw | Smart fix | Safety / Device Note |
Air conditioner (1.0 to 1.5 hp) | 750 to 1,500W | Smart IR remote controller or schedule | Do not use cheap plug-in adapters; control via infrared. |
Storage water heater | 2,000 to 3,000W | Heavy-duty 20A/30A smart switch or relay | Must be wired directly into the wall/breaker by an electrician. |
Washing machine/dryer | 500 to 3,000W | Appliance built-in delay timer | Dryers pull too much continuous load for standard smart plugs. |
TV + entertainment setup | 60 to 200W on, 5 to 20W standby | Standard smart plug on a power strip | Perfect and completely safe use case for a standard 10A/13A plug. |
LED lighting | 5 to 15W per bulb | Motion sensor / Smart bulbs | Safe, but provides the lowest financial return on investment. |
Which smart devices save the most energy (and which barely help)?
Direct Answer
Devices that control high-draw loads save the most: air conditioner controllers, water heater timers, and off-peak appliance scheduling. Motion sensors on LED lights save very little, because LEDs already use little power.
The following is the ranking based on what the smart device controls.
Smart air conditioner controllers and smart thermostats
Air conditioner control is the biggest winner in a Malaysian home. A smart air conditioner controller or smart thermostat switches the unit off in empty areas, stabilizes the temperature, and allows homeowners to cool their living environment on a schedule.
Zoning lets homeowners cool only the rooms in use. Users set each room on a schedule, so the study room cools during work hours and the bedrooms cool in the evening.
According to Google Nest, the smart thermostats save about 15% on cooling. Also, a smart thermostat maker on Quora said ENERGY STAR-certified models must prove savings using at least a year of real field data.
Smart water heater timers
A storage water heater is one of the home appliances that consumes most energy in ahome. In fact most residents don’t need a hot tank at 3 at midnight.
One Reddit user said he put his water heater on a smart switch that cuts power during peak hours and overnight. His electricity bill was down around USD 30 in the first month, though he admits summer played a part.
Motion and presence sensors in high-draw rooms
Presence sensors run effectively in homes with big loads, like a home theatre or a study with an air conditioner. One Reddit user set the motion and presence sensors to switch off a heater and amplifiers after the room goes empty for 10 minutes.
According to The Eco Guide (cited by Ambiq), motion sensors cut lighting energy by 35% to 75%. However, with LEDs, the savings are much smaller.
Motorized curtains and blinds
Motorized curtains and blinds help block intense afternoon sun and keep the interior cooler, so the air conditioner works without using more energy. A Quora contributor noted that in hot, sunny climates, automatic blinds that close when the windows are exposed to the sun can save a lot on AC costs.
For west-facing units in Malaysia, motorised curtains make a huge impact.
Smart plugs on standby clusters
Plug one smart plug into a power strip that supports the TV, console, and soundbar. Homeowners should shedule the smart plug to turn off when’re out and overnight.
It’s better to not use smart plugs on low-draw items like a microwave. The plug’s own standby power can match what you save.
Smart appliances
Connected washing machines, dryers and dishwashers can start on a timer. Many smart appliances also feature eco cycles and sense load size, so the appliances use less water and power for a one-time wash.
Weather-based and sensor-based automation
Automation works best when reacting to specific conditions. A weather station or outdoor sensor can close the curtains automatically when the sun becomes strong, or skip pre-cooling on a rainy day. KNX, the building automation standard, uses weather stations to stop homes from overcooling.
Smart meters and energy monitors
You can’t eliminate what you can’t see. ABB found smart metering improves energy efficiency by about 7% (cited by KNX), mainly because most homeowners change habits and adopt saving strategies once they see the numbers.
Smart lighting: small savings, more convenience
LED bulbs save home energy, consuming at least 75% less energy than incandescent bulbs, according to the US Department of Energy. On top of that, LEDs last up to 25,000 hours, according to Just Energy (cited by Ambiq). LEDs already did the heavy lifting.
Automating LEDs saves a few watts per hour. Indeed, Most homeowners buy smart lighting for security and comfort, and the energy savings are a small bonus.
Maintenance alerts
A dirty air conditioner filter forces the property unit to work harder. Some smart aircond systems monitor run hours and notify homeowners when servicing is due, so the property unit stays efficient and lasts longer.
Device | Load it controls | Energy impact | Payback |
|---|---|---|---|
Smart aircond controller/thermostat | Air conditioner | High | Fast |
Smart water heater timer | Water heater | High | Fast |
Off-peak appliance scheduling | Washer, dryer, EV charger | High (on ToU tariff) | Fast |
Motorized curtains | Solar heat → air conditioning | Medium | Slow |
Smart plug on standby cluster | TV, console, soundbar | Medium | Within about a year |
Energy monitor | Whole home | Medium | Depends on your follow-up |
Motion sensor on LED lights | Lighting | Low | Very slow |
How much energy can a smart home really save?
Direct Answer
Research from the Spanish Home Automation Association, CEDOM, states smart home savings between 10% and 30% of electricity use. Homes reach the 10% to 30% range only when homeowners automate cooling, water heating, or load timing. Homes that only automate lights see much smaller savings.
What the research says
- Up to 30% electricity savings from home automation, according to CEDOM, the Spanish Home Automation Association (cited by Endesa).
- Savings by category from Spain’s IDAE: 39% on heating, 27% on hot water, 12% on appliances, and 9% on lighting (cited by Endesa).
- About 15% on cooling from Google Nest smart thermostats.
The IDAE numbers derive from Spain, where heating is a huge load. Cooling occupies that spot in Malaysia.
What real users report
Online forums share a more mixed story:
- The smart plug audit: approximately 19% lower monthly usage after fixing eco & standby settings.
- The water heater timer: around USD 30 lower in the first month.
- Solar-timed appliances and EV charging: “over a thousand per year” saved, with total payback on smart gear and solar under 4 years.
- The heavy hobbyist: 3 Raspberry Pis, 5 ESP32 boards and a PC running 24/7. His verdict: his setup likely uses more power than it saves.
The pattern is clear across all the cases mentioned. Savings follow the size of the load you control.
Which homes save the most
- Condos and landed homes with several air conditioners. More cooling load means more energy to cut.
- Homes with rooftop solar. Smart home automation shifts appliances into the hours when the panels generate free power.
- Holiday homes, homestays and rental units. No one there to switch the power off manually, so remote control and schedules are important to stop empty property units from burning power in the background.
A Malaysian example: what the numbers look like
Below is an example using TNB’s July 2025 domestic rates for Malaysian homes using up to 1,500 kWh a month. The usage figures are illustrative assumptions.
Example household: a 3-bedroom condo where the air conditioner uses 200 kWh a month.
- Air conditioner control. Occupancy sensors lower air conditioner use by 20%, saving 40 kWh. At 45.92 sen/kWh (28.52 sen energy + 4.55 sen capacity + 12.85 sen network), that’s about RM18 a month, or RM220 a year.
- ToU shifting. Moving 100 kWh of laundry and water heating from peak to off-peak saves 4.09 sen/kWh, about RM4 a month.
As a result, air conditioner control saves more than 4 times as much as shifting laundry to off-peak hours. Homeowners should focus on controlling air conditioners first.
How to use TNB’s Time-of-Use tariff with smart home automation
Direct Answer
TNB’s Time-of-Use (ToU) tariff charges less for energy used between 10 pm and 2 pm on weekdays and all day on weekends and public holidays. A smart home can automatically schedule heavy smart appliances during cheaper hours.
TNB ToU peak and off-peak hours explained
- Peak hours: 2 pm to 10 pm, Monday to Friday.
- Off-peak hours: 10 pm to 2 pm on weekdays, including all day on weekends and public holidays.
- Who can join: domestic customers in Peninsular Malaysia with a smart meter. Customers can opt in to the ToU tariff through the MyTNB app, email, or a Kedai Tenaga.
Monthly usage | Peak rate | Off-peak rate |
|---|---|---|
Up to 1,500 kWh | 28.52 sen/kWh | 24.43 sen/kWh |
Above 1,500 kWh | 38.52 sen/kWh | 34.43 sen/kWh |
Energy charge only, effective 1 July 2025. Capacity and network charges apply on top.
One Reddit user came up with a good point: Scheduling saves “a minimal amount” without time-based rates. The ToU tariff is what makes scheduling take effect in Malaysia.
Which appliances to schedule off-peak
- Washing machines and dryers. Schedule the washing machines and dryers to start after 10 pm or on weekend mornings.
- Storage water heaters. Heat the tank before 2 pm, then cut power through peak hours.
- EV chargers. Charge overnight.
- Dishwashers. Run after dinner, once the clock passes 10 pm.
Pre-cool before peak hours
Cool the home before 2 pm, then let the air conditioner coast. A contributor with a time-based tariff pre-cools his home during cheaper hours to stop usage during the expensive window.
Pre-cooling the home works best in well-insulated units with motorized curtains closed against the afternoon sun.
Pair smart scheduling with rooftop solar.
If you have solar panels, schedule heavy smart home appliances for midday when panels produce the most. One Reddit user timed his EV charging and appliances to solar hours and saved over a thousand a year.
Smart air conditioner habits that save electricity
Direct Answer
Set the air conditioner between 24°C and 26°C, let motion sensors switch it off in empty rooms, and keep the temperature steady instead of dropping the temperature to a minimum when you arrive. Open a fan to spread cool air so the aircond runs less.
What’s the most energy-efficient aircond temperature?
24°C is the widely recommended setting in Malaysia, according to Suruhanjaya Tenaga. Every degree lower puts pressure on the compressor and makes the compressor work harder.
Hence, a smart controller exists today to hold the temperature setting at 24°C so homeowners won’t drop the temperature to 18°C “just for a while.”
Does keeping the air conditioner running 24 hours save electricity?
For most homes, no. Running the air conditioner in an empty home all day consumes more power than cooling the home environment when the homeowner arrives.
However, there’s still an exception: An air conditioner with the inverter feature in a well-insulated room. Inverter units perform most efficiently at a reliable speed, eliminating short on-off cycles that waste power.
A Reddit user said: In a well-insulated home, keeping the temperature steady surpasses letting the temperature swing. A smart schedule offers homeowners both: steady cooling while at home, off while out.
What to switch off at night
- Standby clusters (TV, console, soundbar, set-top box) through one smart plug.
- The water heater through a smart timer.
- Lights in empty rooms through a “good night” routine.
- Bathroom exhaust fans with an auto-off timer. A Quora user mentioned that bathroom exhaust fans also push cooled air outside.
Use fans and airflow with the air conditioner
One Reddit user ran his fan with a temperature sensor whenever a part of his house was cooler than another. Based on his observation, his AC run time was reduced by 10% to 30%. Hence, a ceiling fan paired with an air conditioner does the same job on a smaller scale.
Do smart devices use more electricity?
Direct Answer
Yes. Every smart device consumes a small amount of power 24/7 to stay on and connected. The savings easily outweigh outweigh the air conditioners that draw higher loads. On the other hand, standby power can cancel out the savings on LED bulbs..
How much standby power smart devices draw
Smart plugs, bulbs, and switches each consume a small amount of power while “off,” usually around half a watt to 1 watt per device, according to the IEA 4E data.
Indeed, half a watt sounds insignificant. But those small watts add up: multiply by 30 bulbs, a few smart speakers, and a smart hub, and your home runs a small, constant load every day.
Wi-Fi vs Zigbee vs Z-Wave power draw
Zigbee and Z-Wave devices consume less power than Wi-Fi devices. The Zigbee and Z-Wave systems use low-power radios and connect through a smart home hub.
If you plan to install many sensors and switches for your property project, a Zigbee or Z-Wave system keeps the background load lower.
Check out the types of home automation to learn more about Zigbee or Z-Wave.
Why a house full of smart bulbs can use more power
A Reddit user summarized his statement: a Zigbee LED bulb consumes less electricity in a day than an old incandescent bulb uses in an hour. That’s great. Incorporating a Wi-Fi chip into an LED bulb drains energy constantly, and the auto-off feature saves only a few watts.
Smart home automation technology saves energy when the technology controls high-draw systems. A house with many smart bulbs mostly trades switching a switch on and off for a steady trickle of standby power.
Downsides and limits of smart energy saving
Direct Answer
Upfront cost, Wi-Fi dependence, standby power and the “easy comfort” effect are the main limits. Touchstone Energy Cooperatives states that smart home technology isn’t energy efficient on its own. The savings depend on how you set the smart home technology up.
What happens if the Wi-Fi goes down?
Cloud-only devices stop taking commands from your phone. Most cloud-only devices save their last setting or fall back to manual control.
Devices with local control run their schedules continuously without the internet.
The rebound effect: when convenience means more use
Smart homes make comfort easy, and easy comfort gets used more.
- The sofa effect. A Quora user said that changing the temperature from your phone makes the temperature tempting to cool more.
- Automation blind spots. A Reddit user found his AC running with the windows open after his system lost sync with the thermostat.
- Changing routines. Another user said working from home eliminated his schedule-based savings.
Smart bulbs vs smart switches
- Smart bulbs go offline when the homeowner switches off the wall switch. Then the home automation system stops working.
- Some smart bulbs switch on at full brightness automatically after a power goes off. One Reddit user had every bulb in his house light up at 3 at midnight.
- One smart switch controls a whole room of bulbs. A Reddit user priced 3 smart bulbs at about £70, against £30 for a smart dimmer and switch.
In effect, smart switches are cheaper and easier to live with.
Fix insulation and shading first
Several homeowners mentioned insulation, better windows and LED lighting saved more than their smart home automation system ever did. In Malaysia, adding window film, curtains and roof insulation helps save energy, because automation works best in a home environment that stays cool.
Upfront cost and payback
- Smart hardware costs more than regular switches and plugs.
- Air conditioner control and water heater timers often pay back instantly.
- Lighting automation takes years.
Is a smart home worth it if you only care about energy savings?
Direct Answer
Only air conditioner control, water heater timers, and off-peak scheduling reliably pay back for energy savings alone. Most homeowners use their smart home system for security and convenience, with lower electricity bills as a bonus.
The value beyond your electricity bill
Many smart home owners say the biggest benefits don’t display on the electricity bill:
- Leak alerts that give you a warning in minutes instead of days.
- Lights that switch on when you arrive, so homeowners don’t trip in a dark corridor.
- An “I’m going out” routine that switches every smart device off in one tap or one prompt.
- Away-mode lighting that switches lights on and off while you’re away on holiday, so your home looks occupied to people.
- Easier control for elderly parents or anyone with limited mobility, through voice commands.
A smaller carbon footprint
Property buildings account for a large share of the world’s carbon emissions, and about 70% of those building emissions come from running them day to day, according to Architecture 2030 (cited by Ambiq) . Every kWh the home unit saves cuts emissions too, since most of Malaysia’s electricity still derives from fossil fuels [VERIFY: Malaysia generation mix].
Peace of mind from smart locks
One Reddit user said: “Knowing that I did lock the back door before I went out and not having to go back is so helpful.”
A smart door lock shows the door status on a smartphone and locks remotely. For many households in Malaysia, the smart door lock is the first smart device they use every day.
Device | Energy saving | Security | Convenience |
|---|---|---|---|
Smart aircond controller | High | Low | High |
Smart water heater timer | High | Low | Medium |
Smart lock | None | High | High |
Motion-sensor lighting | Low | Medium | High |
Leak sensor | None (saves on repairs) | Medium | Medium |
Smart plug | Medium | Low | Medium |
Looking for a reliable smart lock solution for your property projects? Raizo smart locks will be your best choice.
What property developers should build in for energy-saving smart homes?
Direct Answer
Build energy-ready smart units by wiring for smart switches, installing smart meters, and adding zoned air-conditioner control during construction. Buyers get the savings from day one, without costly retrofits.
Wire for smart switches during construction
Retrofitting smart switches is harder than it looks. Homeowners on Reddit mention that smart switches tend to require deep back boxes and neutral wires, “both of which only exist in new builds.”
As a developer managing the project, you can avoid digging into the wall at the wiring stage. Incorporating neutral wires and deeper back boxes at construction costs far less than rewiring after project handover.
Buyer demand for energy-efficient smart features
Malaysian buyers are paying closer attention to electricity costs since TNB’s tariff changes in July 2025, according to PropertyGuru Consumer Sentiment Study. Energy-ready smart home automation features provide your sales team with a clear answer to “how much will I pay in bills?”
Smart locks as the entry point to a connected home
A smart door lock is the device residents first encounter and interact with every day. When the smart door lock connects to the smart home hub, one voice prompt, such as ‘Hey, I’m home,’ can turn on the air conditioners, lights, and water heater when residents return home.
Check out property projects that use the Raizo smart lock solution.
Green building credits and smart systems
Energy monitoring and automated controls support energy-efficiency credits under Malaysia’s Green Building Index (GBI), giving your project another selling point.
Choose a supplier that stays after handover
Smart home automation systems need constant updates, spare parts, and support for years. Before you sign the contract, request project references, local service coverage, and response times.
Raizo Smart Living & Smart Hospitality Malaysia has supported more than 500 property projects across Malaysia and Singapore with responsive after-sales support and local installation. Schedule a free consultation to discuss smart-ready developments.
Conclusion
A smart home saves energy when the automation system controls the loads that matter: the air conditioner, the water heater, and the timing of heavy smart appliances. Start with a smart plug audit, then automate the biggest drains before optimizing the rest.
Smart lighting and gadgets also add comfort and security. Homeowners’ TNB bills go down when the air conditioner and water heater run less.
Planning a new development project? Discover Raizo smart home automation solutions or talk to the professional Raizo team about building energy-ready smart units today.
