Jul 25, 2025
Smart homes are no longer a futuristic fantasy—they’re here, and they’re growing fast. From voice-controlled lights and thermostats to automated security systems and appliances, the modern smart home offers convenience, energy efficiency, and even increased property value. But before diving into the world of smart devices, there’s a critical aspect homeowners often overlook: your home’s electrical system.
In this blog, we’ll break down whether smart homes are truly worth the investment and explain the electrical considerations you must understand before upgrading your home’s intelligence.
What Makes a Home “Smart”?
A smart home integrates technology with your home's infrastructure to automate and remotely control systems like lighting, heating, security, entertainment, and appliances. Common smart features include:
Smart lighting (voice-activated or app-controlled)
Programmable thermostats
Smart locks and video doorbells
Security cameras and alarms
Smart speakers and hubs (like Alexa or Google Nest)
Voice-controlled appliances and plugs
These devices communicate over your Wi-Fi network, allowing you to manage them from anywhere through a smartphone or voice assistant.
Is a Smart Home Worth the Investment?
Let’s consider the top benefits that make smart homes attractive:
1. Convenience
Control your home with voice commands, schedule lighting scenes, or adjust your thermostat from your phone—even while you're on vacation.
2. Energy Efficiency
Smart thermostats and lighting systems help reduce energy use by running more efficiently and adapting to your daily routines.
3. Enhanced Security
Smart doorbells, cameras, and sensors provide real-time surveillance and alerts, giving you greater peace of mind.
4. Accessibility
For the elderly or people with disabilities, smart tech can greatly increase independence and safety.
5. Property Value
A home equipped with modern automation features can be more attractive to buyers, especially in competitive markets.
So yes—smart homes can absolutely be worth the investment. But there’s a catch...
The Hidden Factor: Is Your Electrical System Ready?
Before investing in smart devices, it’s essential to ask: Can your home’s current electrical system support them? Smart homes are only as good as the electrical foundation they’re built on. Here’s what you need to know.
1. Wi-Fi Isn’t Enough—You Need Power Infrastructure
Many homeowners assume a smart home only requires strong Wi-Fi. While that's true for communication, every smart device still needs safe, stable, and sometimes upgraded power infrastructure to operate properly.
Older homes may not have enough outlets in convenient locations.
Overloaded circuits can result from adding too many devices.
Some systems—like smart panels, EV chargers, or surveillance networks—may require dedicated circuits or higher amperage.
If your home’s electrical system is outdated or near capacity, you may need a panel upgrade or circuit expansion before going fully smart.
2. Grounding and Wiring Compatibility
Many smart switches, outlets, and dimmers require a neutral wire to function. However, homes built before the 1980s often don’t have neutral wires running to switches.
In this case, your options include:
Installing smart-compatible wiring
Using smart bulbs instead of switches
Choosing no-neutral-required smart devices (less common and more expensive)
It’s important to consult an electrician before purchasing smart switches, as retrofitting for neutral wires may involve opening walls or rewiring circuits.
3. Electrical Panel Load
As you add smart devices—especially high-power ones like:
Smart ovens
Electric vehicle chargers
Smart HVAC systems
Automated window shades or sprinkler systems
… your electrical panel may get overloaded. Many older homes still use 100-amp panels, but modern smart homes may require 200 amps or more.
Upgrading your panel can:
Improve capacity
Prevent breaker tripping
Make room for future smart additions
Bring your system up to current code standards
4. Surge Protection
Smart homes are full of sensitive electronics. A power surge—whether from lightning or a utility spike—can easily damage or destroy smart devices.
Installing whole-home surge protection at your panel is a wise investment to protect:
Smart appliances
Networked HVAC systems
Computers and TVs
Smart lighting and switches
Some insurance policies even require surge protection for homes with high-value electronics.
5. Backup Power and Battery Integration
If your smart home includes a security system, electric vehicle charger, or solar panels, you may also want to consider:
Backup generators
Home batteries (like Tesla Powerwall)
Transfer switches
These systems require proper installation and integration into your home’s electrical panel. An electrical contractor can help ensure everything is safe, efficient, and code-compliant.
The Cost Breakdown
Here’s a rough estimate of what various smart home upgrades (and associated electrical work) might cost:
Item Cost Range
Smart thermostat $100–$300
Smart lighting (per switch/bulb) $20–$100
Smart doorbell/security system $150–$600
EV charger installation $800–$2,500
Electrical panel upgrade (to 200A) $1,500–$3,000
Whole-home surge protection $300–$800
Rewiring for neutral wires Varies ($500–$2,000+)
Keep in mind: upfront costs are often offset by energy savings, rebates, and increased resale value.
Tips Before You Start Your Smart Home Journey
Have an Electrical Inspection
A licensed electrician can evaluate your system’s readiness for smart upgrades.Plan for the Future
Even if you're starting small, choose devices that can scale with your system and lifestyle.Avoid Cheap Knockoffs
Use UL-listed, name-brand products that meet U.S. safety standards.Invest in Surge Protection and Backup
Protect your investment from power issues and outages.Work with an Electrical Contractor
Don’t risk DIY disasters—some smart upgrades require professional wiring, code compliance, and permits.
Final Thoughts: It’s Smart to Plan Ahead
Smart homes are a fantastic investment for comfort, convenience, and efficiency—but only if your electrical system is ready for the job. By planning ahead and making sure your wiring, panel, and protection systems are up to par, you’ll enjoy all the benefits of smart living without any of the headaches.
Need help evaluating or upgrading your electrical system for smart devices? Deaver Electric specializes in smart home electrical planning and installation. Contact us today for a consultation!