Do Smart Thermostats Really Save Money on Heating and Cooling?

December 07, 2020

Keeping your Laurel house comfy can require a big chunk of change. The average homeowner spends about $172 on monthly energy costs, according to ENERGY STAR®, or approximately $2,060 each year. At least half of that is for heating and cooling.

Many homes rely on programmable thermostats, but the majority of people don’t bother to program them. The process is bothersome, involved and only offers you a couple of options for temperature changes. When your house stays at an identical setting throughout the day, it wastes utilities and adversely influences your monthly expenses.

Smart thermostats adjust to your routine and modify the temp to accompany it. But can having one really conserve money on heating and cooling? Yes, and here’s why.

Studies Show Smart Thermostats Decrease on Utility Expenses

Independent studies have determined these devices can result in major savings.

These studies used home energy bills in 41 states before and after installing 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 approximated savings of $131 to $145 each year.

With the average smart thermostat priced between $100–$250, those savings can help it pay for itself. And the majority of local energy companies offer 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 first program it just like any other thermostat. You’ll set it up and down, so the thermostat can learn about your desired settings. Then, it will get to work developing a program that helps you save money, whether you’re at your residence or out and about. As it geofences with your smartphone, you won’t have to remember to adjust it when you exit or come home.

Pros and Cons of Getting a Smart Thermostat


As we covered previously, smart thermostats give lots of benefits to your home and utility bill, including:

  • No need to set—Your smart thermostat will adjust to your routine, so you don’t have to use up time using programs or remember to adjust it.
  • Knows when you arrive and take off—Since a lot of smart thermostats geofence with your phone, your house will move into an energy-efficient setting when you go and be comfortable when you return.
  • Remote temperature management—You’ll be able to keep an eye on your house’s temp from nearly anyplace, thanks to an app on your phone.
  • Supervise heating and cooling use—Many smart thermostats offer in-depth data through their app, like how long you required heating and cooling on a certain day.
  • Reminders—Some smart thermostats will remind you of essential maintenance tasks, such as when you’re due to get a new air filter.
  • Added savings—The majority of local energy companies offer rebates for smart thermostats, so check with yours for more info.


In spite of that, there’s a few areas you should take into account when considering installing a smart thermostat in your house:

  • Compatibility—Depending on the type and age of your heating and cooling system, a smart thermostat might not function with it. If you’re not sure, it’s best to check with an HVAC specialist like H&C Heating and Cooling. We also suggest having it professionally installed. This ensures that you have the correct number of wires and that it’s hooked up correctly. Some systems don’t have a common wire, which results in compatibility issues with a smart thermostat. This wire powers your thermostat, so if your house doesn’t have a C-wire, we can put one in.
  • Housing situation—If you own your residence and want to reside there for a long time, it’s a wise investment to install a smart thermostat. If you’re thinking about moving shortly or rent, we recommend holding back unless you will take the thermostat with you. If you rent, you’ll usually need to have your landlord’s permission first in advance of adding a new thermostat.
  • Cost—Smart thermostats are pricier than programmable thermostats, and we suggest 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 regularly at the house? If so, you might not see as large of savings, but you’ll have the perks of not needing to program or adjust a thermostat.

Depend on H&C Heating and Cooling for Your Smart Thermostat Needs

At H&C Heating and Cooling, our number one purpose is to keep your house cozy while helping you conserve more heating and cooling expenses. If you’re considering installing a smart thermostat, our pros can help, from picking the best model to expert installation. Call us at 301-960-3247 today to learn more.