Will a Smart Thermostat Save Me Money on Utility Bills?

December 07, 2020

Keeping your Oxford residence comfy can eat up a big chunk of change. The average homeowner spends about $172 on monthly energy costs, according to ENERGY STAR®, or around $2,060 each year. At least half of that is consumed by heating and cooling.

The majority of houses rely on programmable thermostats, but the majority of people don’t take the time to use them properly. The process is bothersome, involved and only gives you a few options for temperature changes. When your residence is kept at an unchanging temp throughout the day, it wastes energy and adversely influences your monthly costs.

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

Studies Show Smart Thermostats Reduce on Utility Costs

Independent studies have determined these devices can result in large savings.

These studies used home energy bills 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, generating an average savings of $131 to $145 yearly.

With the typical 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 since they’re ENERGY STAR® certified.

How Does a Smart Thermostat Work?

After your smart thermostat is ready to go, you’ll first program it just like your previous thermostat. You’ll switch it up and down, so the thermostat can determine your preferences. Then, it will start creating a program that helps you save money, whether you’re at your residence or out and about. As it geofences with your smartphone, you won’t have to remember to adjust it when you exit or get back.

Pros and Cons of Using a Smart Thermostat


As we talked about before, smart thermostats provide many pluses to your home and heating and cooling expenses, such as:

  • No need to adjust—Your smart thermostat will pick up on your schedule, so you won’t be required to waste time adjusting programs or remember to turn it up or down.
  • Knows when you arrive and go—As lots of smart thermostats geofence with your phone, your house will go into an energy-efficient setting when you take off and be comfortable when you return.
  • Remote temperature control—You’ll be able to keep an eye on your home’s temp from virtually anyplace, because of an app on your phone.
  • Supervise heating and cooling use—Many smart thermostats give detailed data through their app, like how long you required heating and cooling on a specific day.
  • Reminders—Certain smart thermostats will let you know about important maintenance tasks, such as when you’re due to get a new air filter.
  • Added savings—The majority of local energy companies have rebates for smart thermostats, so contact with yours for more info.


However, there’s a couple of things you should consider when considering getting 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’re unsure, it’s best to ask an HVAC specialist like Franklin's Heating & Air Conditioning, 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 have a common wire, which creates compatibility issues with a smart thermostat. This wire energizes your thermostat, so if your residence doesn’t have a C-wire, we can put one in.
  • Housing situation—If you own your home and plan to be there for many years, it’s a wise investment to have a smart thermostat. If you’re planning to move shortly or rent, we suggest waiting unless you will take the thermostat with you. If you rent, you’ll often need to secure your landlord’s permission first before putting in a new thermostat.
  • Cost—Smart thermostats cost more than programmable thermostats, and we recommend 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 regularly at the house? If that’s the case, you might not see as many savings, but you’ll get the benefits of not having to program or adjust a thermostat.

Trust Franklin's Heating & Air Conditioning, Inc for Your Smart Thermostat Needs

At Franklin's Heating & Air Conditioning, Inc, our number one priority is to keep your house comfortable while helping you conserve more heating and cooling costs. If you’re wanting to install a smart thermostat, our specialists can help, from picking the best model to expert installation. Contact us at 662-281-1231 today to learn more.