How Does a Smart Thermostat Save Money on Utility Expenses?

December 07, 2020

Keeping your Buellton home comfortable can require a big chunk of change. The average family spends about $172 on monthly heating and cooling bills, according to ENERGY STAR®, or around $2,060 annually. At least half of that goes to heating and cooling.

The majority of houses rely on programmable thermostats, but many people don’t bother to program them. The process is time-consuming, involved and only offers you a couple of options for temperature changes. When your residence stays at an identical setting throughout the day, it consumes gas and electricity and negatively impacts your monthly bill.

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

Studies Show Smart Thermostats Reduce on Heating and Cooling Bills

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

These studies involved home utility bills 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, resulting in an approximated savings of $131 to $145 yearly.

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

How Does a Smart Thermostat Work?

After your smart thermostat is installed, you’ll first program it just like your old thermostat. You’ll set it up and down, so the thermostat can determine your preferences. Then, it will start creating a program that helps you spend less money, whether you’re at your residence or gone. As it geofences with your smartphone, you won’t have to think about adjusting it when you leave or come back.

Pros and Cons of Using a Smart Thermostat


As we covered prior, smart thermostats offer many perks to your home and heating and cooling costs, including:

  • No need to set—Your smart thermostat will learn your activities, so you won’t be required to use up time setting programs or remember to adjust it.
  • Knows when you get home and go—Because 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 arrive.
  • Remote temperature supervision—You’ll be able to keep an eye on your house’s temp from nearly anywhere, due to an app on your phone.
  • Watch heating and cooling use—Most smart thermostats give valuable data through their app, such as how long you needed heating and cooling on a particular day.
  • Reminders—Select smart thermostats will let you know about important maintenance tasks, such as when you’re due to change your air filter.
  • Added savings—Most local energy companies have rebates for smart thermostats, so contact with yours for details.


In spite of that, there’s a few points you should consider when thinking about getting a smart thermostat in your residence:

  • Compatibility—Based on the type and age of your heating and cooling system, a smart thermostat might not work. If you’re not sure, it’s recommended to ask an HVAC specialist like Allstar Heating & Air Conditioning. We also recommend having it professionally installed. This guarantees that you have the correct number of wires and that it’s connected properly. 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 residence doesn’t have a C-wire, we can put one in.
  • Housing situation—If you own your home and are planning to reside there for a long time, it’s a good investment to get a smart thermostat. If you’re thinking about moving in the next year or rent, we suggest holding back unless you want to take the thermostat with you. If you rent, you’ll typically need to get your landlord’s permission first prior to putting in a new thermostat.
  • Cost—Smart thermostats cost more 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 often at the house? If so, you might not see as many savings, but you’ll get the convenience of not needing to program or adjust a thermostat.

Depend on Allstar Heating & Air Conditioning for Your Smart Thermostat Needs

At Allstar Heating & Air Conditioning, our main purpose is to keep your residence cozy while helping you conserve more utility costs. If you’re wanting to install a smart thermostat, our professionals can help, from picking the right model to expert installation. Contact us at 805-242-9638 today to learn more.