Do Smart Thermostats Really Save Money on Energy?

December 07, 2020

Keeping your Omaha residence comfy can consume a lot of money. The average family spends about $172 on monthly heating and cooling bills, according to ENERGY STAR®, or around $2,060 yearly. 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 take the trouble to set them. The process is bothersome, detailed and only provides you a few options for temperature changes. When your house stays at the same temperature throughout the day, it consumes energy and negatively impacts your monthly expenses.

Smart thermostats pick up on your schedule and change the settings to match it. But can getting one really conserve money on heating and cooling? Yes, and here’s why.

Studies Show Smart Thermostats Decrease on Energy Bills

Independent studies show these devices can result in major savings.

These studies involved home energy costs in 41 states before and after adding 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 annually.

With the common smart thermostat priced between $100–$250, those savings can help it pay for itself. And most 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 initially use it just like your old thermostat. You’ll switch it up and down, so the thermostat can figure out your wants. Then, it will start creating a program that helps you spend less money, whether you’re at your residence or out and about. As it geofences with your smartphone, you won’t have to put it on your list to adjust it when you go or get back.

Pros and Cons of Having a Smart Thermostat


As we mentioned before, smart thermostats offer a lot of advantages to your residence and energy bill, such as:

  • No need to adjust—Your smart thermostat will adjust to your activities, so you won’t need to waste time setting programs or remember to adjust it.
  • Knows when you come and take off—Because lots of smart thermostats geofence with your phone, your house will be put into an energy-efficient setting when you go and be cozy when you return.
  • Remote temperature management—You’ll be able to see your house’s settings from just about anyplace, due to an app on your phone.
  • Monitor heating and cooling use—The majority of smart thermostats give valuable data through their app, like how long you used heating and cooling on a specific day.
  • Reminders—Select smart thermostats will alert you to critical maintenance tasks, including when it’s time to change your air filter.
  • Extra savings—Most local energy companies offer rebates for smart thermostats, so call with yours for details.


Having said that, there’s several things you should contemplate when thinking about adding a smart thermostat in your house:

  • Compatibility—Subject to the type and age of your heating and cooling system, a smart thermostat might not function with it. If you’re not sure, it’s best to ask an HVAC professional like The Frazier Company. We also recommend having it professionally installed. This confirms that you have the proper number of wires and that it’s hooked up right. Some systems don’t include a common wire, which creates compatibility troubles with a smart thermostat. This wire energizes your thermostat, so if your home doesn’t have a C-wire, we can add one.
  • Housing situation—If you own your house and want to be there for many years, it’s a smart investment to get a smart thermostat. If you’re planning to move shortly or rent, we suggest holding back unless you will take the thermostat with you. If you rent, you’ll usually need to secure your landlord’s permission first ahead of adding a new thermostat.
  • Cost—Smart thermostats are pricier 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 often at the house? If that’s your situation, you might not see as many savings, but you’ll have the benefits of not needing to program or adjust a thermostat.

Depend on The Frazier Company for Your Smart Thermostat Needs

At The Frazier Company, our number one goal is to keep your residence comfy while helping you conserve more energy expenses. If you’re wanting to install a smart thermostat, our specialists can help, from choosing the right model to expert installation. Contact us at 402-628-0206 today to learn more.