How Does a Smart Thermostat Save Money on Utility Costs?

December 07, 2020

Keeping your Keokuk residence comfy can require a big chunk of change. The usual household spends about $172 on monthly energy bills, according to ENERGY STAR®, or approximately $2,060 yearly. At least half of that goes to heating and cooling.

The majority of residences have programmable thermostats, but the majority of people don’t take the time to program them. The process is time-consuming, complicated and only gives you a few options for temperature settings. When your house stays at an unchanging temp throughout the day, it wastes utilities and badly impacts your monthly expenses.

Smart thermostats adjust to your schedule and adapt the settings to accompany it. But can installing one really conserve money on heating and cooling? Yes, and here’s why.

Studies Show Smart Thermostats Reduce on Heating and Cooling Costs

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

These studies included home utility bills in 41 states before and after adding 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 annually.

With the typical smart thermostat running between $100–$250, those savings can help it pay for itself. And most 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 installed, you’ll first program it just like your previous thermostat. You’ll switch it up and down, so the thermostat can figure out your needs. Then, it will start making a program that helps you save money, whether you’re at your residence or out and about. Since it geofences with your smartphone, you won’t have to think about adjusting it when you leave or come home.

Pros and Cons of Installing a Smart Thermostat

Pros

As we covered prior, smart thermostats give lots of perks to your home and energy expenses, such as:

  • No need to set—Your smart thermostat will adjust to your schedule, so you don’t have to waste time setting programs or remember to change.
  • Knows when you arrive and go—Since a lot of smart thermostats geofence with your phone, your home will go into an energy-efficient setting when you leave and be cozy when you get back.
  • Remote temperature supervision—You’ll be able to see your residence’s settings from nearly any location, thanks to an app on your phone.
  • Supervise heating and cooling use—Many smart thermostats give great data through their app, including how long you needed heating and cooling on a specific day.
  • Reminders—Certain smart thermostats will alert you to crucial maintenance tasks, such as when you’re due to put in a new air filter.
  • Extra savings—The majority of local energy companies offer rebates for smart thermostats, so contact with yours for more information.

Cons

In spite of that, there’s a few things you should consider when thinking about installing a smart thermostat in your residence:

  • Compatibility—Depending 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 best to contact an HVAC professional like WM J Kraus & Son. We also recommend having it professionally installed. This guarantees that you have the right number of wires and that it’s hooked up properly. Some systems don’t include a common wire, which leads to compatibility problems with a smart thermostat. This wire energizes your thermostat, so if your home doesn’t have a C-wire, we can install one.
  • Housing situation—If you own your house and are planning to live there for years, it’s a wise investment to install a smart thermostat. If you’re planning to move in the next year or rent, we advise delaying unless you want to take the thermostat with you. If you rent, you’ll typically need to secure your landlord’s permission first in advance of putting in a new thermostat.
  • Cost—Smart thermostats are more expensive than programmable thermostats, and we advise having yours professionally installed. However, the energy savings over its lifetime can help pay for itself.
  • Lifestyle—Does a family member work from home, or is someone regularly at the house? If that’s the case, you might not see as large of savings, but you’ll have the convenience of not having to program or adjust a thermostat.

Trust WM J Kraus & Son for Your Smart Thermostat Needs

At WM J Kraus & Son, our main purpose is to keep your house pleasant while helping you conserve more heating and cooling bills. If you’re thinking about installing a smart thermostat, our professionals can help, from choosing the best model to expert installation. Contact us at 319-229-2318 today to learn more.