Smart homes

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A ‘smart’ or ‘connected’ home enables household equipment and appliances to be controlled automatically and remotely.

Smart homes are not just about making your life easier by controlling creature comforts like your television or sound system. They can also save you energy and money in a variety of ways.

Household equipment and appliances in a smart home can be automated to:

  • turn on or off
  • turn up or down
  • operate on a schedule
  • adjust to changes in the environment

This allows you to optimise your energy use and create a more energy-efficient and sustainable home.

The savings can be increased if you are on a flexible time-of-use electricity tariff. Automating your appliances can help avoid peak-tariff electricity use and take advantage of cheaper off-peak rates.

If implemented correctly, smart homes can:

  • save energy and money
  • improve your comfort levels and make your life easier
  • lower your emissions
  • improve home safety and security
  • add value to your home
  • reduce impacts on the electricity grid.

Controlling your home

You can control almost any type of internet-enabled equipment in a smart home. The most common aspects controlled in smart homes are:

Smart homes comprise of smart devices around the home that collect and store data locally or in a ‘cloud’ (an online server). By sharing this data with other devices or cloud systems, smart devices can automate everyday tasks.

A smart home typically requires:

  • a reliable Wi-Fi (wireless) network
  • a compatible control device (such as a smart phone or tablet) to operate your smart devices

Smart devices are becoming increasingly accessible to average Australian households with many appliances now having smart technology built in. Most smart devices are ‘plug and play’ and becoming easier to set up.

Smart devices are operated in 3 main ways:

  • smart phone apps
  • virtual assistants
  • home automation systems

Smart phone apps

Smart devices are commonly controlled remotely using a smart phone app. Most smart devices have apps for both iOS and Android.

Some manufacturing brands use one app to control their devices which can result in devices operating within their own ecosystem. This can make integration of multiple devices a challenge without the use of a home automation system to connect them.

Virtual assistants

Voice-activated virtual or smart assistants can link with smart devices to automate aspects of your home.

Smart assistants (such as Google Assistant, Siri and Alexa) can be the central hub of a smart home and make life easier by controlling all your devices using voice commands.

Home automation systems

Home automation system software connects various smart devices in the home to control and program from your smart phone, tablet or in-home display (IHD). Actions of home automation systems are triggered based on user-defined rules, schedules, or sensors.

Home automation systems can include:

  • plug and play systems connected to open-source home automation tools
  • more complex systems that require a professional to design and install.

A wired automation system has sensors, switches, and measurement units often powered centrally.

A wireless automation system has a separate electricity supply for each unit. Their electricity consumption can be low, depending on the manufacturer. These systems are more suited for existing houses as they do not require a control wire to be used for each switch or sensor.

Home energy management systems (HEMS)

Your automation system can be integrated with a home energy management system (HEMS) that uses hardware and software to monitor and control your energy generation, storage and consumption.

A HEMS can:

  • record the flow of electricity in the home and track your system’s performance
  • shift high energy-using equipment and appliances from peak electricity grid times
  • maximise the utilisation of your solar generation using seasonal and daily weather patterns
  • suggest the best times to use your equipment and appliances to save money.

Smart hubs

In most cases, a single wireless network is all that is required to connect your devices with a home automation system. However, there can be limitations on the number of smart devices that can be connected to a wireless network and Wi-Fi router settings may need to be adjusted.

A smart hub is a central control unit that connects your wireless devices rather than relying on your wireless network to connect them.

A smart hub will:

  • not overwhelm your Wi-Fi router
  • improve reliability
  • offer local control for faster automation.

Standby power

The energy consumption of a home automation system will add to your standby power load. While standby power of smart devices can be substantial, the energy savings they can achieve will generally exceed the additional energy they use.

Check the energy consumption of a home automation system before you buy and ask your supplier or installer to calculate their consumption.

Smart heating and cooling

Smart thermostats

Smart thermostats allow you to remotely control your heating and cooling through your Wi-Fi connection. Smart thermostats can:

  • set heating and cooling schedules
  • learn and adjust for occupancy and preferred temperature settings
  • set different temperatures in different parts of the house
  • sense humidity and compensate for outside temperature
  • provide remote diagnostics to identify faults before they happen.

Some smart thermostats can be installed by the householder but this varies between products. Check that the thermostat is compatible with your appliances, and that there’s local customer support before you buy.

Heating and cooling schedules

Smart heating and cooling controls can be used to maintain a comfortable temperature and save you money.

When creating a heating and cooling schedule:

  • Consider the heating and cooling needs of different rooms. For example, bedrooms may only need to be heated or cooled at night or early morning, while laundries may not need any heating or cooling.
  • Consider how the temperature changes naturally through the day from occupancy changes and natural sunlight.

Controls can also be used to automate blinds, awnings, windows, vents and fans that will reduce your need for additional heating or cooling.

Find out more about upgrading your heating and cooling system.

Smart hot water

Hot water systems can be programmed to turn on or off as needed. This includes:

  • heating when rooftop solar systems are generating electricity
  • operating when heat pump efficiency is optimal (generally during the warmest part of the day)
  • operating when energy prices are at their lowest
  • turning off solar hot water booster switches during summer months
  • turning off when going on holidays and turning on just before your return.

Heat pump hot water and electric-boosted solar hot water are the most likely hot water systems to be programmable.

Remember that bacteria can grow in warm water that is not heated to a high enough temperature.

Find out more about hot water systems on the Your Home website.

Smart lighting

Smart lighting includes LEDs, light switches and other fixtures that are controlled remotely. Smart lighting may use motion sensors, timers, or more elaborate centralised systems.

You can schedule lights to power on and off and integrate your lighting with other smart features. Smart lighting also has adaptive lighting capabilities, such as dimming and colour changing features, which can lower your energy use and extend the life of the bulb.

Some smart lighting products require additional hardware such as a ‘wireless bridge’ or ‘Wi-Fi extender’. Check smart lighting products for compatibility with your control devices and Wi-Fi router.

Smart appliances

More appliances are entering the market with some form of connectivity.

Smart appliances can include almost anything in your home including:

  • fridges
  • washing machines
  • dishwashers
  • home entertainment systems
  • ovens
  • pool pumps
  • security systems.

Smart fridges are one of the best examples of smart appliances. They can remotely change the temperature or use integrated screens to show you the contents of your fridge when out shopping.

Smart plugs can convert some conventional appliances into smart appliances allowing you to control them remotely. The most common appliances controllable with a smart plug will be simple on/off appliances with no intermediate standby, such as a lamp.

Smart power strips are an advanced version of traditional power boards that automatically cut power to appliances not in use. This can help to avoid unnecessary energy waste from standby power.

Smart meters

Smart meters are a technology for recording your electricity use. A smart meter is a small box with a digital screen, usually mounted in your meter box on the outside of your property.

Older meters use spinning dials to record your electricity usage. Smart meters record your electricity use every 30 minutes and typically send this information to your energy retailer once or twice a day.

Smart meters are also a step towards getting new technologies like solar panels and batteries, and can provide more options for you to manage your costs.

Smart meters open up other new opportunities, including:

  • understanding your electricity use through the apps and online portals offered by many energy retailers – these can show when you use the most electricity, which can help find ways to save on bills
  • more choice in electricity plans, such as time-of-use plans, which can offer cheaper rates for using electricity at off-peak times.

Smart meter roll out

A smart meter roll out is underway in the eastern states and territories of Australia which aims for all homes and small businesses to have a smart meter by 2030. 

The rollout covers:

  • ACT
  • NSW
  • Queensland
  • South Australia.

In Victoria and Tasmania, smart meter rollouts are already finished or close to complete. For more information about how installations are being scheduled in your area you can contact your energy retailer.

If you would like a smart meter before the national rollout reaches your area, you can ask your retailer about upgrading early. If you request an early installation, your retailer may charge an upfront fee. Upfront fees may also apply if your property is newly built and being connected to electricity for the first time.

Getting a smart meter will not automatically change the way you are charged for your electricity use. If you notice unexpected changes in your bill, talk to your energy retailer who can work through it with you.

In-home energy displays

In-home displays (IHDs) are a more advanced visual display option for your smart home. IHDs give a visual indication of your household energy use and costs at any given time. An IHD interface can be accessed on your smart phone, tablet or dedicated device.

IHDs use data transmitted from your smart meter. If your home is on a time-of-use tariff, the display will help you monitor electricity price periods and decide when to run high-load appliances.

Some IHDs can also tell you:

  • where the energy is being used to observe the impact of turning off appliances
  • the tariff at any given time (usually in cents per kWh)
  • the amount and cost of energy use over the past hour, month or day
  • energy use compared with previous selected periods
  • automatic updates on tariffs, conditions or network issues
  • the availability of renewable energy such as solar and wind.

For this level of information, the IHD needs to be connected to your smart meter or sense the current flowing through the mains supply.

Demand response

Demand response is the ability for households to respond to remote communications to increase or decrease the amount of load on the electricity system.

Households are offered price incentives or other benefits from your energy retailer to reduce electricity use at times of peak demand.

Demand response can be fully automated with equipment responding to remote signals. It can also be scheduled or done manually when you receive a message from the program provider.

Demand response usually applies to:

Devices must have the right hardware, meet the Australian standards and be specially enabled to be capable of demand response.

Check with your energy provider about available demand response programs.

Security of smart devices

Data security and privacy are a consideration for smart devices, as are effective consumer protection mechanisms.

The Cyber Security (Security Standards for Smart Device) Rules 2025 are the first set of rules to mandate:

  • cyber security standards for most types of consumer grade smart devices acquired in Australia
  • obligations for manufacturers to provide statements of compliance with the standards.

The Rules come into effect on 4 March 2026.

To find out more visit the Department of Home Affairs website.

Read more

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Smart homes devices guide ACCC Product Safety

How to create your own smart home: the basics CHOICE

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Electrification guide

energy.gov.au is a Department of Climate Change, Energy, the Environment and Water website.

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