How Does a Smart Thermostat Save Money on Utility Costs?

December 07, 2020

Keeping your Erie residence cozy can consume a lot of money. A typical household spends about $172 on monthly heating and cooling bills, according to ENERGY STAR®, or about $2,060 yearly. At least half of that is consumed by heating and cooling.

Many residences have programmable thermostats, but the majority of people don’t take the trouble to set them. The process is time-consuming, involved and only offers you a few options for temperature settings. When your residence is kept at an identical temperature throughout the day, it wastes utilities and adversely impacts your monthly costs.

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

Studies Show Smart Thermostats Save on Heating and Cooling Bills

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

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

With the common smart thermostat running between $100–$250, those savings can help it pay for itself. And the majority of local energy companies offer 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 set it just like your old thermostat. You’ll switch it up and down, so the thermostat can figure out your wants. Then, it will start creating a program that helps you spend less money, whether you’re at home or gone. Since it geofences with your smartphone, you won’t have to think about adjusting it when you exit or return.

Pros and Cons of Installing a Smart Thermostat


As we talked about prior, smart thermostats give a lot of benefits to your home and energy bill, including:

  • No need to set—Your smart thermostat will pick up on your routine, so you don’t have to spend time adjusting programs or remember to turn it up or down.
  • Knows when you get home and go—As a lot of smart thermostats geofence with your phone, your home will go into an energy-efficient setting when you go and be comfy when you arrive.
  • Remote temperature control—You’ll be able to see your house’s temperature from virtually any location, due to an app on your phone.
  • Watch heating and cooling use—Many smart thermostats give in-depth data through their app, including how long you needed heating and cooling on a particular day.
  • Reminders—Select smart thermostats will let you know about crucial maintenance tasks, including when you’re due to put in a new air filter.
  • Extra savings—The majority of local energy companies have rebates for smart thermostats, so contact with yours for more info.


In spite of that, there’s a few areas you should take into account 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 function with it. If you’re unsure, it’s best to ask an HVAC pro like Patterson & Stirling Inc. We also recommend having it professionally installed. This confirms that you have the right number of wires and that it’s connected accurately. Some systems don’t have a common wire, which leads to compatibility problems with a smart thermostat. This wire runs your thermostat, so if your house doesn’t have a C-wire, we can put one in.
  • Housing situation—If you own your house and plan to live there for years, it’s a good investment to install a smart thermostat. If you’re thinking about moving shortly or rent, we recommend waiting unless you plan to take the thermostat with you. If you rent, you’ll typically need to secure your landlord’s permission first ahead of getting 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 have the perks of not being required to program or adjust a thermostat.

Depend on Patterson & Stirling Inc for Your Smart Thermostat Needs

At Patterson & Stirling Inc, our main priority is to keep your residence cozy while helping you save on heating and cooling costs. If you’re considering installing a smart thermostat, our pros can help, from selecting the best model to expert installation. Call us at 814-308-0416 today to learn more.