Does Your Smart Thermostat Really Save Money?

Smart thermostats have become a trendy home upgrade in recent years. With this type of thermostat, you can precisely control your home’s temperature from your phone, and the thermostat will learn your habits and lifestyle over time to give you temperature setting recommendations. They can be a great way to fine-tune your home’s temperature and keep it comfortable while reducing your energy usage.

 If you’re thinking about upgrading your thermostat, you should prepare to pay more up-front than you would with a traditional thermostat. However, the companies advertise that the savings on your utility bills will offset the cost over time. Is this true? To know whether or not the intelligent device will save you money, there are several factors you’ll need to consider. 

Average Savings

 The specific amount of savings that a smart thermostat provides can vary from home to home. A study conducted by Nest reports that customers save 10 to 15 percent on heating and air conditioning costs from using the brand’s thermostat. Their competitor, Ecobee, also conducted a study that found their thermostat can save up to 23 percent on energy costs. 

 If your average energy bill is $150 per month, this means that you could save $180 to around $400 per year with an upgraded thermostat. Most smart thermostats cost about $300 to purchase and install, so your thermostat may pay for itself within a couple of years. 

Smart Thermostat Location

 Savings from a smart thermostat tend to be more significant in certain areas. In regions that experience hot summers and cold winters, households spend more on average to regulate the temperature in their homes. Therefore, they’ll get more savings from the smart device than homeowners who live in temperate areas. 

 You can figure out whether or not an upgraded thermostat is economical for your house by reviewing your energy bills from the last year. Calculate how much you’d save if your monthly bill dropped by 15 percent. Then, you can see how long it would take for the energy savings to offset the up-front cost of the thermostat. 

Smart Thermostat Usage

 A smart thermostat will only save you a considerable amount of money if you use it properly. If you don’t take advantage of its features, you likely will not see a difference in your energy bill. Programming your thermostat may be confusing or tedious at first, so some homeowners buy a new thermostat only to ignore its cost-saving settings. 

 For example, you and your family members have to connect the smart device to your phones to know when someone is home. This allows the thermostat to drop your home’s temperature when the house is unoccupied. Without setting this feature up, though, you miss out on the savings. 

 A smart thermostat could pay for itself in a year or two if you live in an area with four distinct seasons and you commit to using it properly. Simply buying one doesn’t guarantee any savings, though. To decide whether or not it’s a wise purchase for your home, you have to consider your current energy usage, your location, and whether or not you intend to use all of the thermostat’s features.