What Is a Smart Plug and How Can It Save You Money

The smart plug is probably the most underrated smart home device. For under 10 euros, you can turn any “dumb” electrical appliance into one you control from your phone, schedule by the hour, and monitor for energy consumption. In this article I explain exactly what a smart plug is, how it works, how much money it can save you, and which ones are the best to buy in 2026.

Table of contents

What is a smart plug and how does it work

A smart plug is an adapter that sits between your wall outlet and any electrical appliance. It has a WiFi (or Zigbee) chip inside that connects to your home network and lets you control the electrical supply remotely from your phone.

Basic operation

1. Plug your device into the smart plug
2. The smart plug connects to your WiFi
3. From the app on your phone, you turn the plug on or off
4. The connected appliance receives or loses power

It’s like having a remote switch for anything that plugs into the wall: lamps, fans, electric radiators, coffee makers, chargers, TVs…

Components of a smart plug

Not to be confused with a regular plug

A regular plug just passes current. A smart plug has electronics inside that:

• Connects to the internet
• Measures how much electricity passes
• Can be controlled remotely
• Can be scheduled by time

What is a smart plug used for

Remote control from anywhere

The most basic function: turn things on and off from your phone, wherever you are. Left the iron on at home? Turn it off from the office.

Schedule-based programming

• Coffee maker turns on at 7:00 AM
• Fan turns off at 3:00 AM
• Christmas lights turn on at sunset
• Phone charger turns off at 100%

Energy monitoring

Smart plugs with energy meters show you exactly how many watts each appliance draws. This helps you discover which devices are costing you money.

Automations

• When your phone connects to home WiFi, turn on the living room lamp
• When temperature drops below 18°C, turn on the electric heater
• When you leave home, turn everything off automatically

How much money does a smart plug save

Here’s where it gets interesting. Smart plugs can save money in several ways:

Turning off standby devices

Many appliances consume electricity even when “off”:

With smart plugs that turn these off at night, you easily save 50-80 euros per year.

Preventing devices from being left on

• Electric heater left on all night: schedule off at 11 PM
• Iron left on: turn it off from your phone
• Outdoor light left on during daytime: light sensor or schedule

Optimizing time-of-use rates

If you have time-of-use electricity pricing (cheaper at night), schedule high-consumption appliances for off-peak hours:

• Smart washing machine or smart plug: turn on at midnight
• Dishwasher: turn on at midnight
• Electric car charger: charge from midnight to 7 AM

Estimated savings: 15-20% on large appliances.

Investment vs savings

Pro-tip: Buy smart plugs with energy monitoring (like Gosund SP111 or Tapo P110). In the first month, monitor everything and you’ll discover which appliances cost more than you thought.

Best smart plugs in 2026

Budget options (no energy monitoring)

Best options (with energy monitoring)

Outdoor rated

How to set up a smart plug

Setup is practically identical for all brands:

1. Plug the smart plug into the wall
2. Download the app (Smart Life, Tapo, eWeLink, depending on brand)
3. Create an account in the app
4. Add a new device (the app detects it automatically)
5. Connect to your WiFi (enter password)
6. Give it a name (e.g., “Kitchen coffee maker”)
7. Test by turning on/off from the app

Total time: 3 minutes per plug. No technical knowledge needed.

Setup tips

• Use descriptive names: “Living room lamp” is better than “Plug 1”
• Group by room in the app
• Set up schedules from day one
• Monitor consumption during the first week to understand your patterns

Common mistakes when buying smart plugs

Buying the cheapest without checking compatibility

Not all cheap Amazon plugs are compatible with Google Home or Alexa. Look for “compatible with Google Assistant/Alexa” in the description.

Not checking the maximum amperage

Most plugs support 10-16A (2300-3600W). If you plug in a 2000W electric heater, make sure the plug can handle it. 10A plugs are enough for almost everything.

Buying lots from one brand without testing one first

Buy one or two first. Test them for a week. If they work well, buy more. Don’t buy 10 at once and discover the app is terrible.

Not using energy monitoring

If you bought plugs with energy monitoring, use it. It’s the function that can save you the most money. Monitor for a full month.

Pro-tip: If you use Google Home, look for Matter-compatible smart plugs. They’re a bit pricier but will work with any future app without depending on a single manufacturer.

FAQ: Frequently asked questions

Do they work without internet?

The plug keeps working if it loses connection, but you can’t control it from outside the house. Programmed schedules are stored on the plug itself and run without internet.

Can I plug a smart plug into another smart plug?

I don’t recommend it. Always plug the smart plug directly into the wall, then the appliance into the smart plug. Chaining plugs can cause current issues.

What if the app shuts down?

Matter-compatible smart plugs work with multiple apps. If Smart Life shut down tomorrow, you could use Google Home or Apple Home. Plugs that only use a proprietary app carry more risk.

Do smart plugs use electricity?

Yes, between 0.5 and 1W on standby. Per year, that’s about 20-30 cents. It’s negligible compared to the savings they generate.

Conclusion

A smart plug is the cheapest and most effective gateway to a smart home. For under 10 euros per unit, you can control any appliance from your phone, schedule timers, monitor consumption, and save real money on your electricity bill. My recommendation: start with 2-3 Gosund SP111 plugs with energy monitoring for about 24 euros. Monitor for a month, discover what’s costing you money, and expand from there. The investment pays for itself in months.