How Does a Smart Thermostat Save Money on Energy Expenses?

December 07, 2020

Keeping your Branchville home comfy can consume a big chunk of change. The average 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.

The majority of residences have programmable thermostats, but many people don’t take the time to use them properly. The process is bothersome, involved and only gives you a couple of options for temperature settings. When your residence stays at an unchanging temp throughout the day, it requires energy and badly impacts your monthly bill.

Smart thermostats learn from your day-to-day activities and adjust the temperatures to coordinate it. But can installing one really save you money on heating and cooling? Yes, and here’s why.

Studies Show Smart Thermostats Save on Utility Expenses

Independent studies have determined these devices can lead to large savings.

These studies involved home utility expenses in 41 states before and after putting in a Nest smart thermostat. Nest said the study showed its thermostats can save up to 12% on heating and 15% on cooling, generating 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 many local energy companies provide 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 first use it just like any other thermostat. You’ll switch 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. Since it geofences with your smartphone, you won’t have to remember to adjust it when you leave or get back.

Pros and Cons of Using a Smart Thermostat


As we mentioned previously, smart thermostats give many pluses to your house and heating and cooling bill, such as:

  • No need to set—Your smart thermostat will learn your routine, so you won’t be required to use up time using programs or remember to adjust it.
  • Knows when you come and go—As lots of smart thermostats geofence with your phone, your home will be put into an energy-efficient setting when you go and be comfy when you get back.
  • Remote temperature management—You’ll be able to see your house’s temperature from nearly any location, because of an app on your phone.
  • Monitor heating and cooling use—Most smart thermostats offer detailed data through their app, including how long you used heating and cooling on a specific day.
  • Reminders—Certain smart thermostats will remind you of crucial maintenance tasks, including when it’s time to put in a new air filter.
  • Added savings—Most local energy companies have rebates for smart thermostats, so call with yours for details.


In spite of that, there’s a couple of points you should contemplate when considering installing a smart thermostat in your home:

  • Compatibility—Depending on the type and age of your heating and cooling system, a smart thermostat might not work. If you’re not sure, it’s best to ask an HVAC specialist like Willco Air Conditioning, Refrigeration & Heating Inc.. We also recommend having it professionally installed. This guarantees that you have the correct number of wires and that it’s hooked up correctly. Some systems don’t include a common wire, which results in compatibility problems with a smart thermostat. This wire runs your thermostat, so if your residence doesn’t have a C-wire, we can put one in.
  • Housing situation—If you own your home and want to reside there for many years, it’s a good investment to install a smart thermostat. If you’re planning to move shortly or rent, we suggest delaying unless you plan to take the thermostat with you. If you rent, you’ll usually need to secure your landlord’s permission first ahead of installing a new thermostat.
  • Cost—Smart thermostats are more expensive 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 regularly at the house? If so, you might not see as big of savings, but you’ll enjoy the perks of not needing to program or adjust a thermostat.

Rely on Willco Air Conditioning, Refrigeration & Heating Inc. for Your Smart Thermostat Needs

At Willco Air Conditioning, Refrigeration & Heating Inc., our number one purpose is to keep your home comfortable while helping you save on utility bills. If you’re wanting to install a smart thermostat, our professionals can help, from choosing the ideal model to expert installation. Call us at 862-345-6896 today to learn more.