How Does a Smart Thermostat Save Money on Utility Bills?

December 07, 2020

Keeping your Crystal and Twin Cities home comfy can consume a good amount of money. The average family spends about $172 on monthly utility bills, according to ENERGY STAR®, or about $2,060 each year. At least half of that goes to heating and cooling.

Many residences rely on programmable thermostats, but many people don’t take the trouble to set them. The process is bothersome, involved and only gives you a couple of options for desired temperatures. When your house is kept at an unchanging temperature throughout the day, it consumes energy and badly impacts your monthly expenses.

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

Studies Show Smart Thermostats Decrease on Energy Bills

Independent studies have found these devices can produce big savings.

These studies used home energy costs 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, producing an approximated savings of $131 to $145 each year.

With the common smart thermostat priced 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 put in, you’ll first program it just like your old thermostat. You’ll switch it up and down, so the thermostat can determine your needs. Then, it will get to work making a program that helps you save money, whether you’re at home or gone. Because it geofences with your smartphone, you won’t have to remember to adjust it when you go or come back.

Pros and Cons of Having a Smart Thermostat


As we mentioned before, smart thermostats give a lot of benefits to your home and utility expenses, including:

  • No need to adjust—Your smart thermostat will learn your routine, so you won’t be required to waste time adjusting programs or remember to change.
  • Knows when you get home and take off—Because a lot of smart thermostats geofence with your phone, your house will be put into an energy-efficient setting when you leave and be comfy when you arrive.
  • Remote temperature supervision—You’ll be able to watch your home’s settings from just about anyplace, due to an app on your phone.
  • Watch heating and cooling use—Most smart thermostats give detailed data through their app, such as how long you needed heating and cooling on a specific day.
  • Reminders—Some smart thermostats will remind you of essential maintenance tasks, including when you’re due to change your air filter.
  • Extra savings—The majority of local energy companies provide rebates for smart thermostats, so check with yours for more info.


In spite of that, there’s several points you should take into account when considering installing 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 don’t know, it’s best to ask an HVAC professional like GV Heating & Air. 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 include a common wire, which causes compatibility issues with a smart thermostat. This wire powers your thermostat, so if your residence doesn’t have a C-wire, we can add one.
  • Housing situation—If you own your home and plan to reside there for a long time, it’s a wise investment to install a smart thermostat. If you’re planning to move in the next year or rent, we suggest delaying unless you want to take the thermostat with you. If you rent, you’ll often need to have your landlord’s permission first ahead of adding a new thermostat.
  • Cost—Smart thermostats are pricier than programmable thermostats, and we recommend 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 often at the house? If so, you might not see as big of savings, but you’ll get the convenience of not having to program or adjust a thermostat.

Rely on GV Heating & Air for Your Smart Thermostat Needs

At GV Heating & Air, our main purpose is to keep your residence comfortable while helping you spend less heating and cooling expenses. If you’re wanting to install a smart thermostat, our pros can help, from selecting the ideal model to expert installation. Contact us at 763-535-2000 today to learn more.