Do Smart Thermostats Really Save Money on Utilities?

December 07, 2020

Keeping your Newark house comfy can eat up a good amount of money. A typical household spends about $172 on monthly utility costs, according to ENERGY STAR®, or about $2,060 each year. At least half of that goes to heating and cooling.

The majority of residences use programmable thermostats, but most people don’t take the time to program them. The process is annoying, involved and only offers you a couple of options for desired temperatures. When your home is kept at the same setting throughout the day, it wastes energy and adversely affects your monthly expenses.

Smart thermostats learn from your schedule and change the settings to accompany it. But can installing 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 found these devices can produce major savings.

These studies included home energy costs in 41 states before and after installing a Nest smart thermostat. Nest said the study determined its thermostats can save up to 12% on heating and 15% on cooling, generating an average savings of $131 to $145 annually.

With the common smart thermostat running between $100–$250, those savings can help it pay for itself. And most local energy companies offer rebates for smart thermostats because they’re ENERGY STAR® certified.

How Does a Smart Thermostat Work?

After your smart thermostat is put in, you’ll at first program it just like any other thermostat. You’ll switch it up and down, so the thermostat can determine your desired settings. Then, it will get to work creating a program that helps you spend less money, whether you’re at home or out and about. Since it geofences with your smartphone, you won’t have to think about adjusting it when you exit or get back.

Pros and Cons of Using a Smart Thermostat


As we talked about previously, smart thermostats give many benefits to your home and heating and cooling bill, including:

  • No need to program—Your smart thermostat will learn your routine, so you don’t have to waste time adjusting programs or remember to turn it up or down.
  • Knows when you come and leave—Since a lot of smart thermostats geofence with your phone, your house will go into an energy-efficient setting when you go and be comfy when you arrive.
  • Remote temperature control—You’ll be able to see your house’s temp from nearly anywhere, because of an app on your phone.
  • Monitor heating and cooling use—Most smart thermostats give great data through their app, such as how long you used heating and cooling on a specific day.
  • Reminders—Select smart thermostats will remind you of crucial maintenance tasks, including when you’re due to get a new air filter.
  • Extra savings—The majority of local energy companies provide rebates for smart thermostats, so call with yours for details.


In spite of that, there’s several things you should contemplate when thinking about adding a smart thermostat in your home:

  • 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 recommended to ask an HVAC professional like Luikart Heating & Cooling. We also advise having it professionally installed. This guarantees that you have the correct number of wires and that it’s linked accurately. Some systems don’t come with a common wire, which leads to compatibility problems with a smart thermostat. This wire runs your thermostat, so if your home doesn’t have a C-wire, we can put one in.
  • Housing situation—If you own your home and are planning to live there for years, it’s a wise investment to have a smart thermostat. If you’re thinking about moving soon or rent, we advise holding back unless you want to take the thermostat with you. If you rent, you’ll often need to have your landlord’s permission first in advance of installing a new thermostat.
  • Cost—Smart thermostats are more expensive than programmable thermostats, and we advise 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 regularly at the house? If so, you might not see as large of savings, but you’ll have the perks of not being required to program or adjust a thermostat.

Trust Luikart Heating & Cooling for Your Smart Thermostat Needs

At Luikart Heating & Cooling, our main priority is to keep your home comfortable while helping you spend less heating and cooling bills. If you’re thinking about installing a smart thermostat, our professionals can help, from choosing the ideal model to expert installation. Call us at 740-200-5591 today to learn more.