Will a Smart Thermostat Save Me Money on Utility Costs?

December 07, 2020

Keeping your Dresden house comfy can consume a good amount of money. The average family spends about $172 on monthly utility costs, according to ENERGY STAR®, or approximately $2,060 yearly. At least half of that is for heating and cooling.

The majority of houses use programmable thermostats, but many people don’t take the trouble to set them. The process is time-consuming, detailed and only gives you a few options for temperature settings. When your residence remains at the same setting throughout the day, it requires gas and electricity and negatively influences your monthly expenses.

Smart thermostats adjust to your day-to-day activities and modify the temperatures to match it. But can getting one really conserve money on heating and cooling? Yes, and here’s why.

Studies Show Smart Thermostats Reduce on Heating and Cooling Expenses

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

These studies involved home energy 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, producing an estimated savings of $131 to $145 annually.

With the common smart thermostat costing between $100–$250, those savings can help it pay for itself. And the majority of 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 ready to go, you’ll at first use it just like your previous thermostat. You’ll switch it up and down, so the thermostat can determine your wants. Then, it will start developing a program that helps you save money, whether you’re at your house or out and about. As it geofences with your smartphone, you won’t have to think about adjusting it when you leave or come home.

Pros and Cons of Having a Smart Thermostat


As we mentioned prior, smart thermostats provide lots of advantages to your house and utility expenses, such as:

  • No need to adjust—Your smart thermostat will adjust to your activities, so you don’t have to waste time setting programs or remember to change.
  • Knows when you come and take off—Since many smart thermostats geofence with your phone, your home will be put into an energy-efficient setting when you go and be comfy when you return.
  • Remote temperature management—You’ll be able to see your residence’s temperature from just about anywhere, thanks to an app on your phone.
  • Monitor heating and cooling use—Many smart thermostats provide valuable data through their app, including how long you required heating and cooling on a certain day.
  • Reminders—Some smart thermostats will remind you of crucial maintenance tasks, like when you need to get a new air filter.
  • Added savings—Most local energy companies provide rebates for smart thermostats, so call with yours for details.


However, there’s several things you should consider regarding adding a smart thermostat in your house:

  • 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 best to contact an HVAC specialist like McFadden Heating & Cooling. We also advise having it professionally installed. This confirms that you have the proper number of wires and that it’s linked accurately. Some systems don’t include a common wire, which results in compatibility troubles with a smart thermostat. This wire powers your thermostat, so if your home doesn’t have a C-wire, we can put one in.
  • Housing situation—If you own your home and want to be there for a long time, it’s a good investment to get a smart thermostat. If you’re planning to move soon or rent, we recommend waiting unless you want to take the thermostat with you. If you rent, you’ll typically need to have your landlord’s permission first in advance of installing a new thermostat.
  • Cost—Smart thermostats are pricier than programmable thermostats, and we suggest 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 that’s your situation, you might not see as many savings, but you’ll enjoy the convenience of not needing to program or adjust a thermostat.

Trust McFadden Heating & Cooling for Your Smart Thermostat Needs

At McFadden Heating & Cooling, our number one goal is to keep your residence cozy while helping you spend less heating and cooling expenses. If you’re wanting to install a smart thermostat, our specialists can help, from selecting the right model to expert installation. Call us at 1-866-781-0111 today to learn more.