How Does a Smart Thermostat Save Money on Energy Bills?

December 07, 2020

Keeping your Heflin house cozy can consume a lot of money. The usual family spends about $172 on monthly energy bills, according to ENERGY STAR®, or about $2,060 each year. At least half of that is consumed by heating and cooling.

Many houses rely on programmable thermostats, but most people don’t take the trouble to set them. The process is time-consuming, involved and only provides you a few options for desired temperatures. When your house remains at an unchanging temp throughout the day, it requires energy and adversely impacts your monthly expenses.

Smart thermostats adjust to your routine and adapt the temperatures to match it. But can installing one really help you spend less money on heating and cooling? Yes, and here’s why.

Studies Show Smart Thermostats Decrease on Utility Bills

Independent studies have found these devices can lead to major savings.

These studies involved home heating and cooling expenses in 41 states before and after putting in a Nest smart thermostat. Nest said the study determined its thermostats can save up to 12% on heating and 15% on cooling, generating an estimated savings of $131 to $145 each year.

With the typical smart thermostat costing between $100–$250, those savings can help it pay for itself. And most 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 first program 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 begin developing a program that helps you conserve more money, whether you’re at home or away. Because it geofences with your smartphone, you won’t have to think about adjusting it when you exit or come home.

Pros and Cons of Installing a Smart Thermostat


As we mentioned previously, smart thermostats give a lot of advantages to your residence and heating and cooling costs, including:

  • No need to set—Your smart thermostat will pick up on your schedule, so you don’t have to spend time using programs or remember to change.
  • Knows when you come and take off—As many smart thermostats geofence with your phone, your home will go into an energy-efficient setting when you go and be cozy when you return.
  • Remote temperature management—You’ll be able to watch your residence’s temp from virtually any location, due to an app on your phone.
  • Watch heating and cooling use—Many smart thermostats offer valuable data through their app, including how long you required heating and cooling on a specific day.
  • Reminders—Some smart thermostats will alert you to crucial maintenance tasks, including when you need to get a new air filter.
  • Extra savings—Most local energy companies have rebates for smart thermostats, so call with yours for more info.


Having said that, there’s a few areas you should contemplate regarding getting a smart thermostat in your house:

  • Compatibility—Based on the type and age of your heating and cooling system, a smart thermostat might not be compatible. If you’re unsure, it’s best to check with an HVAC pro like Bain Heating & Air Conditioning, Inc. We also recommend having it professionally installed. This ensures that you have the correct number of wires and that it’s hooked up accurately. Some systems don’t include a common wire, which results in compatibility problems with a smart thermostat. This wire energizes your thermostat, so if your home doesn’t have a C-wire, we can add one.
  • Housing situation—If you own your residence and want to reside there for years, it’s a wise investment to have a smart thermostat. If you’re planning to move shortly or rent, we recommend delaying unless you want to take the thermostat with you. If you rent, you’ll often need to get your landlord’s permission first ahead of installing a new thermostat.
  • Cost—Smart thermostats are more expensive than programmable thermostats, and we recommend having yours professionally installed. However, the energy savings over time 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 big of savings, but you’ll get the perks of not having to program or adjust a thermostat.

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

At Bain Heating & Air Conditioning, Inc, our main priority is to keep your residence cozy while helping you save on energy bills. If you’re thinking about installing a smart thermostat, our professionals can help, from selecting the right model to expert installation. Call us at 256-270-1196 today to learn more.