Smart thermostats don’t just give you app control over your heating and cooling. Their major promise is to automate temperature levels to save you energy on your home’s largest electricity function, which saves you money. So I dove into just what features on smart thermostats lead to savings, and how much money is likely to stay in your pocket.
Adina Roth, product lead for the Nest Learning Thermostat, told me, “Some of my favorite features that I notice improve savings are the automatic adjustments with Smart Schedule, Auto-Eco energy-saving shifts and Seasonal Savings.” Nest isn’t the only thermostat that has these features, either. Smart models from Ecobee, Honeywell Home, Amazon and others have similar modes that can automatically cut costs at the right times.
Greg Fyke, president and CEO at Ecobee, explained a little more about how features like these save money with minimal effort. “For example, if you leave for work at 8 a.m., our smart thermostats can proactively lower the temperature while you are away to conserve energy and preheat or precool your home to ensure that your house is at your desired temperature when you return. This means lower utility bills and a more efficient home without sacrificing comfort.”
But how much cash actually stays in your wallet? It turns out that experts in smart thermostats have done a lot of research into this. Here’s what I learned.
Average annual savings from a smart thermostat
Smart thermostat savings come in two parts. First, the money you save by implementing heating and cooling settings that lower energy usage for the house. Technically, you can do this with any thermostat, but smart thermostats make it especially easy with their eco modes and suggestions, which means the average user typically starts saving more money when they adopt a smart thermostat.
The second part of savings involves more unique smart thermostat capabilities, such as learning algorithms and portable wireless sensors. Learning capabilities on today’s smart thermostats can collect data on when activities start and end in the house, and then start making programming adjustments themselves based on when people get up in the morning, when they arrive home, how their activities change over the weekend, and so on. Added together, that usually leads to more accurate implementation of eco modes and lowered settings that save money.
The wireless satellite sensors also help, as they allow smart thermostats to turn off heating/cooling not based on where the thermostat is, but where the sensor is placed. If that’s an especially cool or warm spot (like a hot living room on movie night), the thermostat shuts down early enough to save more money.
Combined, these features add up to notable savings. Google Nest’s research, for instance, showed that users of the Nest Learning Thermostat saved an average of 12% to 15% per year without making other major changes. That works out to between $131 and $145 dollars annually, not too shabby for a single device upgrade.
When I asked Ecobee, they reported that users could save up to 26% by installing one of their smart thermostats. That’s a high-end example, but if it works out, people could save around $250 a year by making the switch — especially if they haven’t done much thermostat optimization before.
Keep in mind, these numbers also work for renters who pay for their electricity. However, renters will probably need to get permission to install a smart thermostat.
Paying off a smart thermostat
It’s also important to consider the initial cost of a smart thermostat. Prices can range from around $100 for the cheapest models to more than $350 for top models with all the bells and whistles.
The good news is that thanks to the average savings, almost every smart thermostat purchase will pay for itself within a year or two. Then your smart thermostat can really start saving you money.
Participating in a peak usage program
There’s also another option to save even more money with a smart thermostat. When I talked to the nonprofit Energy Trust of Oregon, spokesperson Chris Wilson mentioned that users could go the extra mile and link up a smart thermostat with programs called “Connected Savings or similar names.
These programs allow utility companies to make minor adjustments to your thermostat during peak use hours or special events to help save money and earn energy discounts. The problem is that you do have to give up some control, and you can’t guarantee the utility companies won’t make your house uncomfortable to live in (from what we and Reddit have seen, their decision-making can vary greatly).
If you don’t want to connect with utility companies directly, Ecobee offers an interesting alternative. It lets you connect with its Community Energy Savings program, which is very similar but basically takes care of the details for you. Ecobee reports you can earn up to $125 extra as a gift for participating in the program.
What about rebates?
We can’t guarantee rebates or incentives to buy a smart thermostat, but it’s a really good idea to look for them in your local programs. Many utility companies offer a rebate just for buying a smart thermostat, especially if it’s Energy Star-rated (as many are). A number of power company websites will have a list of thermostat models that qualify, or more information about how to participate.
On your way to saving money, stop by our guide to the easiest ways to save energy around the home, how smart plugs can help you save energy and quick spring tricks for device management.
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