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

December 07, 2020

Keeping your Bishop house comfy can eat up a good amount of money. The average household spends about $172 on monthly heating and cooling expenses, according to ENERGY STAR®, or approximately $2,060 each year. At least half of that goes to heating and cooling.

The majority of homes rely on programmable thermostats, but most people don’t take the time to use them properly. The process is annoying, complicated and only provides you a few options for temperature settings. When your home remains at an unchanging temp throughout the day, it consumes gas and electricity and negatively affects your monthly costs.

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

Studies Show Smart Thermostats Save on Energy Expenses

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

These studies included home heating and cooling expenses in 41 states before and after putting in a Nest smart thermostat. Nest said the study found its thermostats can save up to 12% on heating and 15% on cooling, resulting in an average savings of $131 to $145 each year.

With the average smart thermostat running between $100–$250, those savings can help it pay for itself. And many local energy companies provide 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 at first set it just like any other thermostat. You’ll set it up and down, so the thermostat can determine your needs. Then, it will get to work creating a program that helps you conserve more 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 get back.

Pros and Cons of Installing a Smart Thermostat


As we mentioned before, smart thermostats give lots of advantages to your home and utility bill, such as:

  • No need to program—Your smart thermostat will adjust to your activities, so you won’t be required to spend time setting programs or remember to change.
  • Knows when you get home and go—As a lot of smart thermostats geofence with your phone, your residence will move into an energy-efficient setting when you go and be cozy when you arrive.
  • Remote temperature supervision—You’ll be able to see your house’s temp from nearly anywhere, thanks to an app on your phone.
  • Supervise heating and cooling use—The majority of smart thermostats give in-depth data through their app, including how long you used heating and cooling on a particular day.
  • Reminders—Certain smart thermostats will remind you of crucial maintenance tasks, like when you need to get a new air filter.
  • Additional savings—The majority of local energy companies have rebates for smart thermostats, so contact with yours for more information.


Having said that, there’s a few areas you should take into account when considering adding a smart thermostat in your residence:

  • Compatibility—Based on the type and age of your heating and cooling system, a smart thermostat might not be compatible. If you’re not sure, it’s best to check with an HVAC pro like Bishop Heating & Air Conditioning. We also advise having it professionally installed. This confirms that you have the correct number of wires and that it’s linked accurately. Some systems don’t come with a common wire, which causes compatibility problems with a smart thermostat. This wire powers your thermostat, so if your residence doesn’t have a C-wire, we can install one.
  • Housing situation—If you own your home and plan to reside there for a long time, it’s a smart investment to install a smart thermostat. If you’re thinking about moving in the next year or rent, we advise delaying unless you will take the thermostat with you. If you rent, you’ll usually need to secure your landlord’s permission first in advance of getting a new thermostat.
  • Cost—Smart thermostats are more expensive 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 that’s the case, you might not see as big of savings, but you’ll have the perks of not being required to program or adjust a thermostat.

Trust Bishop Heating & Air Conditioning for Your Smart Thermostat Needs

At Bishop Heating & Air Conditioning, our top priority is to keep your house comfortable while helping you save on heating and cooling expenses. If you’re wanting to install a smart thermostat, our pros can help, from choosing the ideal model to expert installation. Give us a call at 760-784-9034 today to learn more.