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Will a Smart Thermostat Save Me Money on Energy Bills?

December 07, 2020

Keeping your Los Angeles residence cozy can require a lot of money. The average homeowner spends about $172 on monthly energy bills, according to ENERGY STAR®, or around $2,060 yearly. At least half of that is for heating and cooling.

Many houses have programmable thermostats, but the majority of people don’t take the time to set them. The process is time-consuming, complicated and only provides you a few options for temperature settings. When your house is kept at the same setting throughout the day, it consumes utilities and negatively affects your monthly bill.

Smart thermostats learn from your routine and regulate the settings to coordinate it. But can having one really conserve money on heating and cooling? Yes, and here’s why.

Studies Show Smart Thermostats Save on Heating and Cooling Expenses

Independent studies show these devices can lead to big savings.

These studies involved home utility expenses in 41 states before and after installing 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 estimated savings of $131 to $145 annually.

With the average smart thermostat running between $100–$250, those savings can help it pay for itself. And the majority of 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 installed, you’ll at first program it just like your previous thermostat. You’ll switch it up and down, so the thermostat can determine your wants. Then, it will begin creating a program that helps you spend less money, whether you’re at your residence or away. Because it geofences with your smartphone, you won’t have to think about adjusting it when you exit or come back.

Pros and Cons of Having a Smart Thermostat


As we covered prior, smart thermostats offer many pluses to your house and utility costs, including:

  • No need to set—Your smart thermostat will pick up on your schedule, so you won’t need to spend time setting programs or remember to change.
  • Knows when you come and go—Because lots of smart thermostats geofence with your phone, your residence will go into an energy-efficient setting when you go and be comfortable when you arrive.
  • Remote temperature supervision—You’ll be able to watch your house’s temp from just about any location, on account of an app on your phone.
  • Supervise heating and cooling use—Many smart thermostats offer in-depth data through their app, including how long you used heating and cooling on a specific day.
  • Reminders—Some smart thermostats will remind you of essential maintenance tasks, such as when you’re due to change your air filter.
  • Added savings—The majority of local energy companies have rebates for smart thermostats, so contact with yours for more information.


In spite of that, there’s a couple of areas you should contemplate when thinking about installing a smart thermostat in your residence:

  • Compatibility—Subject to the type and age of your heating and cooling system, a smart thermostat might not work. If you don’t know, it’s recommended to ask an HVAC specialist like AZ Air Conditioning and Heating. We also recommend having it professionally installed. This confirms that you have the right number of wires and that it’s connected properly. Some systems don’t come with a common wire, which leads to compatibility troubles with a smart thermostat. This wire runs your thermostat, so if your home doesn’t have a C-wire, we can add one.
  • Housing situation—If you own your residence and are planning to be there for many years, it’s a wise investment to get a smart thermostat. If you’re planning to move shortly or rent, we advise holding back unless you will take the thermostat with you. If you rent, you’ll often need to get your landlord’s permission first prior to adding a new thermostat.
  • Cost—Smart thermostats are pricier than programmable thermostats, and we suggest 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 frequently at the house? If that’s the case, you might not see as large of savings, but you’ll get the perks of not having to program or adjust a thermostat.

Rely on AZ Air Conditioning and Heating for Your Smart Thermostat Needs

At AZ Air Conditioning and Heating, our main priority is to keep your house pleasant while helping you conserve more utility expenses. If you’re considering installing a smart thermostat, our professionals can help, from choosing the best model to expert installation. Call us at 800-296-5088 today to learn more.