How does a smart switch work?

In order to get the automation and remote control benefits of smart lighting, you essentially are looking to give the light remote control capability. This can be done at the light
or at the switch, and the technology is similar either way.

The smart switch or smart bulb needs to have some kind of radio in order to communicate with your smart home, or at the very least a smartphone app that allows you to
control it. This is often WiFi, but can also be a number of other communication protocols such as Bluetooth, Zigbee or Z-Wave.

This protocol is used to control an electrical relay (basically an electronic switch), or a variable resistor of some kind to alter the voltage going to the light socket.

In order for this to work, the device needs to be ready to receive commands at any time, and may also offer it’s own timer functions and other value added features. This
means it has electronics that need to be remain powered, unlike a manual switch. Most smart switches achieve this by simply acting like any other electrical device, tapping
into the electrical circuit of the house, which will require a neutral wire.

What is a Neutral Wire anyway?

In an AC electrical system such as found in our homes, electrical devices use two wires to complete the circuit required for electricity to flow and be usable. These are known
as a Live (a.k.a. Hot, Active, or Fire wire), and a Neutral wire (or Null wire). You require both a live and a neutral wire to be able to provide electrical current to any device.

Many homes run both wires together everywhere, so it passes through the switch box on it’s way to the light socket, or loops back to the light switch. There are plenty of older
homes which don’t do it this way, and in some countries it’s not normal to do so at all. This is because the neutral wire is never required by the light switch, so to simplify the
wiring of the house only the Live/Load is run through the switch box.

Neutral Wire vs No Neutral

Wire Diagram

You may be able to have a neutral wire installed in your switch box, but that’s going to cost extra on top of the smart switch itself, and may not be practical depending on the
construction of your walls and ceiling.
Does it work with LED bulbs?
The way smart switches get around the need for a neutral wire is to draw a small amount of power (enough for their minimal electronics) through the light socket, basically
using the socket’s neutral wire instead. For most bulb types, including incandescent bulbs, CFL, and halogens, this small current is not enough to power them on so it flows
through unnoticed.

LED bulbs, however, have a much lower power requirement as one of their key benefits. This means that a LED bulb can try to power on with that small current,
but not successfully. The result is typically a blinking bulb, which is clearly undesirable.

Some smart switches come with a capacitor that is installed at the light socket end between the active line and neutral wire. This takes up the small power flow used
by the smart switch and prevents it reaching the bulb, which solves the issue. Ironically, controlling low voltage lights is likely simpler, as their power supply will soak up
the extra in the same way.

No Neutral Wire Bypass Capacitor Diagram

Why do some bulbs require a capacitor in parallel for non-neutral-wire switches to work?

The switch requires some current to pass even in “off” state. If the bulb doesn’t let the current pass or if it starts to flicker as a result of this current, then you will be instructed
to install a capacitor in parallel to the bulb.

Why does it solve the problem?

The capacitor forms a capacitive dropper (together with some components in the switch) that bypasses the bulb. A capacitor in an AC circuit forms a current limiter because
when current flows one way the capacitor lets it pass until the capacitor is charged in one polarity and then when the current is reversed the capacitor discharged and lets the
current flow the other way. The amount of current depends on the capacity of the capacitor and the frequency of the AC.
(A capacitor gets charged up to its supply voltage but opposes the further passage of current through it. It blocks the current flow as the dielectric of a capacitor is non-
conductive and an insulator. When a capacitor is used in an AC circuit, it charges and discharges to change the supply voltage.)