Do Smart Thermostats Really Save Money on Utilities?

December 07, 2020

Keeping your Mobile residence comfy can consume a lot of money. The usual homeowner spends about $172 on monthly heating and cooling bills, 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 time to use them properly. The process is annoying, complicated and only gives you a few options for temperature settings. When your residence remains at an identical setting throughout the day, it requires energy and adversely influences your monthly bill.

Smart thermostats pick up on your day-to-day activities and regulate the temp to coordinate it. But can installing one really conserve money on heating and cooling? Yes, and here’s why.

Studies Show Smart Thermostats Decrease on Utility Bills

Independent studies have determined these devices can produce major savings.

These studies involved home heating and cooling bills in 41 states before and after installing a Nest smart thermostat. Nest said the study found its thermostats can save up to 12% on heating and 15% on cooling, producing an approximated savings of $131 to $145 yearly.

With the typical smart thermostat running between $100–$250, those savings can help it pay for itself. And most local energy companies have rebates for smart thermostats since they’re ENERGY STAR® certified.

How Does a Smart Thermostat Work?

After your smart thermostat is put in, you’ll at first set it just like your previous thermostat. You’ll set it up and down, so the thermostat can learn about your desired settings. Then, it will start creating a program that helps you spend less money, whether you’re at home or gone. Since it geofences with your smartphone, you won’t have to think about adjusting it when you exit or come back.

Pros and Cons of Using a Smart Thermostat


As we covered previously, smart thermostats offer lots of benefits to your house and heating and cooling bill, including:

  • No need to set—Your smart thermostat will adjust to your activities, so you won’t be required to spend time adjusting programs or remember to change.
  • Knows when you arrive and take off—Because lots of smart thermostats geofence with your phone, your residence will go into an energy-efficient setting when you take off and be comfy when you get back.
  • Remote temperature control—You’ll be able to watch your house’s temp from virtually any location, thanks to an app on your phone.
  • Monitor heating and cooling use—Many smart thermostats provide great data through their app, such as how long you needed heating and cooling on a specific day.
  • Reminders—Some smart thermostats will let you know about crucial maintenance tasks, including when it’s time to change your air filter.
  • Additional savings—The majority of local energy companies provide rebates for smart thermostats, so check with yours for more information.


However, there’s a few points you should take into account when considering installing a smart thermostat in your house:

  • Compatibility—Based on the type and age of your heating and cooling system, a smart thermostat might not work. If you’re unsure, it’s advisable to contact an HVAC professional like Farnell Heating & Air Conditioning Inc. We also suggest having it professionally installed. This guarantees that you have the proper number of wires and that it’s connected accurately. Some systems don’t include a common wire, which causes compatibility issues with a smart thermostat. This wire energizes your thermostat, so if your house doesn’t have a C-wire, we can install one.
  • Housing situation—If you own your house and are planning to live there for a long time, it’s a good investment to have a smart thermostat. If you’re thinking about moving shortly or rent, we advise holding back unless you will take the thermostat with you. If you rent, you’ll usually need to have your landlord’s permission first before putting in a new thermostat.
  • Cost—Smart thermostats are pricier than programmable thermostats, and we advise having yours professionally installed. However, the energy savings over its lifetime can help pay for itself.
  • Lifestyle—Does a family member work from home, or is someone often at the house? If that’s the case, you might not see as many savings, but you’ll have the perks of not being required to program or adjust a thermostat.

Depend on Farnell Heating & Air Conditioning Inc for Your Smart Thermostat Needs

At Farnell Heating & Air Conditioning Inc, our main priority is to keep your residence pleasant 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. Contact us at 251-471-2674 today to learn more.