How Does a Smart Thermostat Save Money on Heating and Cooling Costs?

December 07, 2020

Keeping your Georgetown house cozy can eat up a lot of money. A typical family spends about $172 on monthly heating and cooling expenses, 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 use programmable thermostats, but the majority of people don’t bother to program them. The process is time-consuming, detailed and only offers you a few options for temperature changes. When your residence remains at an unchanging temperature throughout the day, it consumes utilities and badly impacts your monthly expenses.

Smart thermostats pick up on your routine and modify the temperatures to match 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 Bills

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

These studies included home utility bills in 41 states before and after adding a Nest smart thermostat. Nest said the study determined its thermostats can save up to 12% on heating and 15% on cooling, producing an approximated savings of $131 to $145 each year.

With the common smart thermostat running between $100–$250, those savings can help it pay for itself. And many 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 at first program it just like your previous thermostat. You’ll turn it up and down, so the thermostat can determine your desired settings. Then, it will begin creating a program that helps you spend less money, whether you’re at your residence or gone. As it geofences with your smartphone, you won’t have to think about adjusting it when you exit or come back.

Pros and Cons of Having a Smart Thermostat


As we mentioned previously, smart thermostats provide lots of pluses to your residence and utility costs, like:

  • No need to set—Your smart thermostat will adjust to your activities, so you don’t have to spend time using programs or remember to adjust it.
  • Knows when you arrive and go—Because a lot of smart thermostats geofence with your phone, your home will go into an energy-efficient setting when you leave and be comfortable when you arrive.
  • Remote temperature supervision—You’ll be able to see your home’s settings from virtually anywhere, on account of an app on your phone.
  • Monitor heating and cooling use—Most smart thermostats give detailed data through their app, like how long you used heating and cooling on a certain day.
  • Reminders—Select smart thermostats will alert you to important maintenance tasks, including when you need to put in a new air filter.
  • Extra savings—The majority of local energy companies provide rebates for smart thermostats, so contact with yours for more information.


Having said that, there’s a few points you should consider when thinking about getting a smart thermostat in your house:

  • Compatibility—Subject to the type and age of your heating and cooling system, a smart thermostat might not work. If you’re unsure, it’s recommended to check with an HVAC professional like Miller Climate Control LLC. We also suggest having it professionally installed. This ensures that you have the right number of wires and that it’s connected correctly. Some systems don’t have a common wire, which leads to compatibility issues with a smart thermostat. This wire runs your thermostat, so if your house doesn’t have a C-wire, we can install one.
  • Housing situation—If you own your home and plan to live there for a long time, it’s a good investment to install a smart thermostat. If you plan to move in the next year or rent, we suggest waiting unless you want to take the thermostat with you. If you rent, you’ll usually need to have your landlord’s permission first prior to putting in a new thermostat.
  • Cost—Smart thermostats are more expensive than programmable thermostats, and we suggest 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 your situation, you might not see as many savings, but you’ll get the convenience of not having to program or adjust a thermostat.

Trust Miller Climate Control LLC for Your Smart Thermostat Needs

At Miller Climate Control LLC, our main purpose is to keep your home comfy while helping you save on energy bills. If you’re considering installing a smart thermostat, our professionals can help, from choosing the right model to expert installation. Call us at 512-937-2001 today to learn more.