How Does a Smart Thermostat Save Money on Utility Expenses?

December 07, 2020

Keeping your Anaheim residence comfy can require a lot of money. The usual household spends about $172 on monthly energy bills, according to ENERGY STAR®, or approximately $2,060 each year. At least half of that goes to heating and cooling.

The majority of homes use programmable thermostats, but most people don’t take the time to use them properly. The process is bothersome, involved and only gives you a couple of options for temperature changes. When your home is kept at the same temp throughout the day, it wastes gas and electricity and negatively impacts your monthly expenses.

Smart thermostats adjust to your routine and modify the temperatures to coordinate it. But can getting one really help you spend less money on heating and cooling? Yes, and here’s why.

Studies Show Smart Thermostats Reduce on Energy Expenses

Independent studies show these devices can lead to major savings.

These studies used home energy costs 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, resulting in an approximated 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 most local energy companies have rebates for smart thermostats since they’re ENERGY STAR® certified.

How Does a Smart Thermostat Work?

After your smart thermostat is put in, you’ll at first set it just like any other thermostat. You’ll turn it up and down, so the thermostat can determine your preferences. Then, it will get to work creating a program that helps you save money, whether you’re at your house or away. Because it geofences with your smartphone, you won’t have to put it on your list to adjust it when you exit or return.

Pros and Cons of Using a Smart Thermostat


As we talked about previously, smart thermostats offer lots of perks to your home and heating and cooling expenses, including:

  • No need to set—Your smart thermostat will adjust to your schedule, so you won’t need to spend time using programs or remember to change.
  • Knows when you arrive and go—Since many smart thermostats geofence with your phone, your house will be put into an energy-efficient setting when you go and be comfortable when you return.
  • Remote temperature control—You’ll be able to keep an eye on your house’s settings from virtually any location, thanks to an app on your phone.
  • Supervise heating and cooling use—Most smart thermostats give great data through their app, including how long you used heating and cooling on a specific day.
  • Reminders—Certain smart thermostats will alert you to important maintenance tasks, like when it’s time to replace your air filter.
  • Added savings—The majority of local energy companies have rebates for smart thermostats, so contact with yours for details.


In spite of that, there’s several points you should contemplate when considering adding 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 advisable to ask an HVAC professional like Eco Fresh HVAC Inc.. We also recommend having it professionally installed. This ensures that you have the right number of wires and that it’s linked correctly. Some systems don’t come with a common wire, which causes compatibility troubles with a smart thermostat. This wire energizes your thermostat, so if your home doesn’t have a C-wire, we can add one.
  • Housing situation—If you own your house and want to be there for a long time, it’s a good investment to have a smart thermostat. If you’re thinking about moving shortly or rent, we advise delaying unless you will take the thermostat with you. If you rent, you’ll typically need to have your landlord’s permission first before installing a new thermostat.
  • Cost—Smart thermostats are more expensive than programmable thermostats, and we recommend 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 frequently at the house? If so, you might not see as large of savings, but you’ll get the perks of not having to program or adjust a thermostat.

Trust Eco Fresh HVAC Inc. for Your Smart Thermostat Needs

At Eco Fresh HVAC Inc., our number one priority is to keep your house comfy while helping you spend less energy bills. If you’re considering installing a smart thermostat, our specialists can help, from picking the ideal model to expert installation. Give us a call at 714-855-1717 today to learn more.