How Does a Smart Thermostat Save Money on Heating and Cooling Costs?

December 07, 2020

Keeping your Logan home cozy can consume a big chunk of change. The average family spends about $172 on monthly heating and cooling bills, according to ENERGY STAR®, or approximately $2,060 annually. At least half of that is for heating and cooling.

The majority of residences rely on programmable thermostats, but the majority of people don’t take the trouble to set them. The process is time-consuming, complicated and only gives you limited options for temperature changes. When your house is kept at an unchanging temperature throughout the day, it consumes utilities and adversely influences your monthly bill.

Smart thermostats learn from your routine and change the settings to match it. But can having one really conserve money on heating and cooling? Yes, and here’s why.

Studies Show Smart Thermostats Reduce on Utility Costs

Independent studies show these devices can lead to major savings.

These studies involved 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 approximated savings of $131 to $145 each year.

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

How Does a Smart Thermostat Work?

After your smart thermostat is installed, you’ll initially program it just like any other thermostat. You’ll turn it up and down, so the thermostat can learn about your needs. Then, it will start making a program that helps you save money, whether you’re at your house or gone. As it geofences with your smartphone, you won’t have to think about adjusting it when you leave or get back.

Pros and Cons of Installing a Smart Thermostat


As we covered prior, smart thermostats give lots of pluses to your residence and heating and cooling expenses, including:

  • No need to adjust—Your smart thermostat will adjust to your schedule, so you won’t be required to spend time using programs or remember to change.
  • Knows when you arrive and leave—Since 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 management—You’ll be able to watch your home’s settings from virtually anyplace, due to an app on your phone.
  • Watch heating and cooling use—The majority of smart thermostats provide valuable data through their app, like how long you used heating and cooling on a certain day.
  • Reminders—Select smart thermostats will remind you of crucial maintenance tasks, including when you need to replace your air filter.
  • Additional savings—Many local energy companies offer rebates for smart thermostats, so check with yours for details.


Having said that, there’s a few things you should consider when thinking about adding a smart thermostat in your residence:

  • Compatibility—Depending on the type and age of your heating and cooling system, a smart thermostat might not be compatible. If you’re unsure, it’s recommended to check with an HVAC professional like Western Mechanical, Inc.. We also recommend having it professionally installed. This ensures that you have the correct number of wires and that it’s hooked up right. Some systems don’t come with a common wire, which causes compatibility problems with a smart thermostat. This wire runs your thermostat, so if your house doesn’t have a C-wire, we can add one.
  • Housing situation—If you own your residence and want to live there for many years, it’s a wise investment to have a smart thermostat. If you’re thinking about moving soon or rent, we suggest waiting unless you plan to take the thermostat with you. If you rent, you’ll often need to have your landlord’s permission first ahead of adding a new thermostat.
  • Cost—Smart thermostats are more expensive than programmable thermostats, and we recommend 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 that’s the case, you might not see as big of savings, but you’ll have the benefits of not being required to program or adjust a thermostat.

Depend on Western Mechanical, Inc. for Your Smart Thermostat Needs

At Western Mechanical, Inc., our top priority is to keep your home cozy while helping you save on heating and cooling expenses. If you’re thinking about installing a smart thermostat, our professionals can help, from choosing the best model to expert installation. Give us a call at 435-753-5515 today to learn more.