Smart home technology, called “the internet of things” by industry insiders and business reporters, is hands down, the coolest thing to happen to homes since the microwave. However, smart homes are more than just hip—they actually save the consumer money and are better for the environment.

The average home spends at least $2,000 annually on energy bills. By switching to energy efficient appliances, equipment and lighting, that number can be cut by 1/3.

1. Smart Thermostats are great for big savings. Close to half of a typical energy bill is spent on heating and cooling. Having a thermostat that knows your schedule, and adjusts the temperature when you’re home or away, is an easy way to save money. With Nest, for example, you can also check your energy usage and adjust the temperature remotely, from your smart phone. This means the consumer has the power to control the temperature in their home, anytime from anywhere, which equals less wasted energy and less money spent.

2. Smart Lights & Lightbulbs are more energy efficient and can be set to timers and motion sensors. For example, when you enter a room, the lights can be programmed to detect your presence and turn on to greet you. And when you leave, the lights will automatically shut off. Gone are the days when lights are left on all over your home, needlessly. Using bulbs that are energy efficient and installing automatic dimmers, will also add help save money and energy.

3. Smart Sprinkler systems like Rachio, are awesome for saving money and water—never wasting a drop. The Rachio Wi-Fi sprinkler system knows when it’s supposed to rain, before you do, and can make sure your sprinklers aren’t running during a storm. You can also control your sprinklers from anywhere at anytime. Rachio even includes a customizable watering zone setting that will factor in sun exposure and plant types, to make sure there is as little runoff as possible.

4. Smart Home Security is easy to install and doesn’t require electricians and technicians to alter the wiring in your home. It’s a less expensive way to secure your home than the old-school ADT like systems that charge a monthly fee for services you probably don’t need. With smart home locks and security systems, you can handle everything remotely and see activity in your home, in real time.

Smart Home technology is the future, and the future is now. With smart home systems, the consumer has the ultimate control—of their electricity, water and security—which equals big savings. Having the ability to track personal usage, in real time, of electricity or water, gives you the power to take action and make changes that are more economical.