Do Smart Thermostats Really Save Money on Utilities?

December 07, 2020

Keeping your Justin home comfortable can require a good amount of money. A typical family spends about $172 on monthly utility expenses, according to ENERGY STAR®, or about $2,060 each year. At least half of that is consumed by heating and cooling.

Most houses rely on programmable thermostats, but the majority of people don’t take the trouble to set them. The process is time-consuming, detailed and only gives you a couple of options for temperature changes. When your residence stays at an unchanging setting throughout the day, it requires utilities and negatively affects your monthly costs.

Smart thermostats learn from your schedule and adapt the settings to coordinate it. But can installing one really help you spend less money on heating and cooling? Yes, and here’s why.

Studies Show Smart Thermostats Save on Heating and Cooling Expenses

Independent studies show these devices can lead to large savings.

These studies included home heating and cooling bills in 41 states before and after adding a Nest smart thermostat. Nest said the study determined its thermostats can save up to 12% on heating and 15% on cooling, resulting in an estimated savings of $131 to $145 annually.

With the average smart thermostat costing between $100–$250, those savings can help it pay for itself. And the majority of local energy companies have rebates for smart thermostats as they’re ENERGY STAR® certified.

How Does a Smart Thermostat Work?

After your smart thermostat is ready to go, you’ll at first use it just like your previous thermostat. You’ll turn it up and down, so the thermostat can learn about your desired settings. Then, it will begin developing a program that helps you conserve more money, whether you’re at your house or gone. Since it geofences with your smartphone, you won’t have to think about adjusting it when you exit or return.

Pros and Cons of Getting a Smart Thermostat


As we talked about previously, smart thermostats offer lots of pluses to your home and utility expenses, including:

  • No need to set—Your smart thermostat will learn your schedule, so you don’t have to use up time setting programs or remember to turn it up or down.
  • Knows when you arrive and leave—As a lot of smart thermostats geofence with your phone, your home will move into an energy-efficient setting when you leave and be cozy when you return.
  • Remote temperature control—You’ll be able to see your house’s temperature from virtually anyplace, due to an app on your phone.
  • Supervise heating and cooling use—The majority of smart thermostats give great data through their app, including how long you used heating and cooling on a particular day.
  • Reminders—Certain smart thermostats will remind you of essential maintenance tasks, such as when you’re due to put in a new air filter.
  • Added savings—Many local energy companies provide rebates for smart thermostats, so call with yours for more info.


However, there’s a couple of things you should consider regarding adding a smart thermostat in your home:

  • Compatibility—Subject to the type and age of your heating and cooling system, a smart thermostat might not be compatible. If you don’t know, it’s best to contact an HVAC pro like Pepper AC & Htg Inc. We also recommend having it professionally installed. This confirms that you have the right number of wires and that it’s hooked up correctly. Some systems don’t include a common wire, which causes compatibility problems with a smart thermostat. This wire energizes your thermostat, so if your home doesn’t have a C-wire, we can install one.
  • Housing situation—If you own your home and are planning to reside there for many years, it’s a good investment to install a smart thermostat. If you plan to move soon or rent, we recommend waiting unless you will take the thermostat with you. If you rent, you’ll often need to secure your landlord’s permission first before adding a new thermostat.
  • Cost—Smart thermostats cost more than programmable thermostats, and we recommend having yours professionally installed. However, the energy savings over the years can help pay for itself.
  • Lifestyle—Does a family member work from home, or is someone often at the house? If so, you might not see as large of savings, but you’ll enjoy the perks of not having to program or adjust a thermostat.

Trust Pepper AC & Htg Inc for Your Smart Thermostat Needs

At Pepper AC & Htg Inc, our main goal is to keep your house comfy while helping you spend less utility expenses. If you’re wanting to install a smart thermostat, our specialists can help, from selecting the ideal model to expert installation. Call us at 940-202-1184 today to learn more.