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I currently have two of these dimmers installed in my house (and two on the way), one of which has been installed outside to control my pool light for over two years with no signs of failure due to the elements.
Most of the Insteon wired solutions, like these dimmers, do require a neutral wire to enable the powerline communication that they use. Insteon does offer a two-wire on/off switch if you don’t have a neutral wire available, but it is not part of the sale.
For more information about the Insteon Dual-Band dimmer, check out my review!