How Does a Smart Thermostat Save Money on Utility Expenses?

December 07, 2020

Keeping your Phoenix house cozy can eat up a good amount of money. The average homeowner spends about $172 on monthly utility expenses, according to ENERGY STAR®, or approximately $2,060 annually. At least half of that is for heating and cooling.

The majority of residences use programmable thermostats, but many people don’t take the time to use them properly. The process is bothersome, detailed and only gives you a few options for temperature settings. When your residence stays at the same temperature throughout the day, it requires gas and electricity and adversely influences your monthly costs.

Smart thermostats learn from your schedule and adjust the settings to accompany it. But can using one really save you money on heating and cooling? Yes, and here’s why.

Studies Show Smart Thermostats Save on Heating and Cooling Expenses

Independent studies have determined these devices can produce large savings.

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

With the average smart thermostat priced between $100–$250, those savings can help it pay for itself. And the majority of local energy companies provide rebates for smart thermostats as they’re ENERGY STAR® certified.

How Does a Smart Thermostat Work?

After your smart thermostat is put in, you’ll first use it just like your previous thermostat. You’ll turn it up and down, so the thermostat can learn about your desired settings. Then, it will start developing a program that helps you conserve more money, whether you’re at your house or out and about. As it geofences with your smartphone, you won’t have to remember to adjust it when you go or get back.

Pros and Cons of Having a Smart Thermostat


As we mentioned before, smart thermostats give lots of pluses to your home and utility expenses, such as:

  • No need to set—Your smart thermostat will adjust to your activities, so you won’t be required to spend time adjusting programs or remember to adjust it.
  • Knows when you arrive and leave—Since many smart thermostats geofence with your phone, your home will go into an energy-efficient setting when you take off and be cozy when you return.
  • Remote temperature control—You’ll be able to see your house’s temp from nearly anyplace, on account of an app on your phone.
  • Monitor heating and cooling use—The majority of smart thermostats provide valuable data through their app, like how long you required heating and cooling on a certain day.
  • Reminders—Select smart thermostats will alert you to critical maintenance tasks, like when you’re due to change your air filter.
  • Added savings—Most local energy companies have rebates for smart thermostats, so call with yours for more information.


Having said that, there’s several points you should contemplate when considering installing 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 don’t know, it’s recommended to check with an HVAC specialist like Integrity AC & Heating LLC. We also recommend having it professionally installed. This confirms that you have the proper number of wires and that it’s hooked up right. Some systems don’t come with a common wire, which results in compatibility issues 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 residence and are planning to reside there for many years, it’s a wise investment to have a smart thermostat. If you plan to move shortly or rent, we suggest delaying unless you will take the thermostat with you. If you rent, you’ll often need to have your landlord’s permission first ahead of installing a new thermostat.
  • Cost—Smart thermostats cost more 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 frequently at the house? If that’s the case, you might not see as big of savings, but you’ll get the perks of not being required to program or adjust a thermostat.

Rely on Integrity AC & Heating LLC for Your Smart Thermostat Needs

At Integrity AC & Heating LLC, our top priority is to keep your residence pleasant while helping you conserve more energy costs. If you’re considering installing a smart thermostat, our professionals can help, from selecting the ideal model to expert installation. Call us at 602-971-0567 today to learn more.