How Does a Smart Thermostat Save Money on Utility Expenses?

December 07, 2020

Keeping your Lexington house cozy can require a lot of money. A typical family spends about $172 on monthly energy costs, according to ENERGY STAR®, or about $2,060 annually. At least half of that is consumed by heating and cooling.

The majority of houses use programmable thermostats, but the majority of people don’t take the time to use them properly. The process is time-consuming, complicated and only offers you a couple of options for temperature settings. When your residence is kept at the same setting throughout the day, it consumes utilities and negatively impacts your monthly costs.

Smart thermostats learn from your day-to-day activities and regulate the settings 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 Save on Energy Bills

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

These studies used home energy bills in 41 states before and after adding a Nest smart thermostat. Nest said the study showed its thermostats can save up to 12% on heating and 15% on cooling, generating an approximated savings of $131 to $145 annually.

With the average smart thermostat running between $100–$250, those savings can help it pay for itself. And many 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 ready to go, you’ll first use it just like your old thermostat. You’ll set it up and down, so the thermostat can figure out your preferences. Then, it will start making a program that helps you conserve more 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 exit or return.

Pros and Cons of Getting a Smart Thermostat


As we mentioned prior, smart thermostats give lots of advantages to your house and energy expenses, including:

  • No need to adjust—Your smart thermostat will pick up on your activities, so you won’t need to use up time setting programs or remember to change.
  • Knows when you get home and leave—Because many smart thermostats geofence with your phone, your residence will move into an energy-efficient setting when you go and be comfy when you get back.
  • Remote temperature supervision—You’ll be able to see your home’s temp from just about anywhere, on account of an app on your phone.
  • Watch heating and cooling use—Most smart thermostats give detailed data through their app, such as how long you required heating and cooling on a certain day.
  • Reminders—Select smart thermostats will remind you of crucial maintenance tasks, including when it’s time to change your air filter.
  • Added savings—Many local energy companies have rebates for smart thermostats, so call with yours for more information.


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

  • Compatibility—Based on the type and age of your heating and cooling system, a smart thermostat might not function with it. If you’re unsure, it’s advisable to check with an HVAC professional like James Heating & A/C, Inc. We also suggest having it professionally installed. This ensures that you have the proper number of wires and that it’s hooked up properly. Some systems don’t come with a common wire, which results in compatibility problems with a smart thermostat. This wire energizes your thermostat, so if your residence doesn’t have a C-wire, we can install one.
  • Housing situation—If you own your house and are planning to reside there for a long time, it’s a wise investment to install a smart thermostat. If you’re thinking about moving in the next year or rent, we suggest holding back unless you will take the thermostat with you. If you rent, you’ll typically need to secure your landlord’s permission first before adding a new thermostat.
  • Cost—Smart thermostats are pricier than programmable thermostats, and we advise having yours professionally installed. However, the energy savings over the years 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 large of savings, but you’ll enjoy the perks of not having to program or adjust a thermostat.

Depend on James Heating & A/C, Inc for Your Smart Thermostat Needs

At James Heating & A/C, Inc, our top priority is to keep your residence comfortable while helping you conserve more heating and cooling costs. If you’re considering installing a smart thermostat, our professionals can help, from choosing the right model to expert installation. Give us a call at 336-853-6070 today to learn more.