How Does a Smart Thermostat Save Money on Energy Expenses?

December 07, 2020

Keeping your Chadron home comfortable can eat up a lot of money. A typical homeowner spends about $172 on monthly energy bills, according to ENERGY STAR®, or about $2,060 yearly. At least half of that is consumed by heating and cooling.

Many houses use programmable thermostats, but many people don’t bother to use them properly. The process is bothersome, complicated and only provides you a few options for desired temperatures. When your house stays at an unchanging temperature throughout the day, it requires gas and electricity and adversely affects your monthly expenses.

Smart thermostats adjust to your routine and modify the temp to coordinate it. But can using one really help you spend less money on heating and cooling? Yes, and here’s why.

Studies Show Smart Thermostats Save on Utility Bills

Independent studies have found these devices can lead to large savings.

These studies used home heating and cooling 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, producing an approximated savings of $131 to $145 yearly.

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

How Does a Smart Thermostat Work?

After your smart thermostat is installed, you’ll at first set it just like any other thermostat. You’ll turn it up and down, so the thermostat can learn about your desired settings. Then, it will begin making a program that helps you save money, whether you’re at home or gone. Since it geofences with your smartphone, you won’t have to remember to adjust it when you leave or come back.

Pros and Cons of Having a Smart Thermostat


As we talked about previously, smart thermostats offer lots of benefits to your residence and utility expenses, such as:

  • No need to set—Your smart thermostat will pick up on your routine, so you won’t need to spend time adjusting programs or remember to turn it up or down.
  • Knows when you arrive and take off—Because a lot of smart thermostats geofence with your phone, your residence will move into an energy-efficient setting when you take off and be cozy when you arrive.
  • Remote temperature supervision—You’ll be able to keep an eye on your residence’s temp from virtually anyplace, due to an app on your phone.
  • Monitor heating and cooling use—Many smart thermostats offer detailed data through their app, including how long you needed heating and cooling on a certain day.
  • Reminders—Certain smart thermostats will alert you to critical maintenance tasks, including when it’s time to replace your air filter.
  • Extra savings—The majority of local energy companies have rebates for smart thermostats, so call with yours for details.


In spite of that, there’s several points you should consider regarding installing a smart thermostat in your home:

  • 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 contact an HVAC professional like MPC Heating & Cooling. We also suggest having it professionally installed. This ensures that you have the right number of wires and that it’s hooked up accurately. Some systems don’t have a common wire, which leads to compatibility issues with a smart thermostat. This wire runs your thermostat, so if your home doesn’t have a C-wire, we can install one.
  • Housing situation—If you own your home and plan to be there for a long time, it’s a wise investment to install a smart thermostat. If you’re thinking about moving shortly or rent, we recommend holding back unless you want to take the thermostat with you. If you rent, you’ll often need to get your landlord’s permission first before putting in a new thermostat.
  • Cost—Smart thermostats are pricier than programmable thermostats, and we suggest having yours professionally installed. However, the energy savings over the years 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 have the convenience of not needing to program or adjust a thermostat.

Rely on MPC Heating & Cooling for Your Smart Thermostat Needs

At MPC Heating & Cooling, our top priority is to keep your home comfortable while helping you spend less utility expenses. If you’re considering installing a smart thermostat, our professionals can help, from picking the right model to expert installation. Give us a call at 308-832-4321 today to learn more.