Will a Smart Thermostat Save Me Money on Utility Costs?

December 07, 2020

Keeping your Odessa home cozy can require a good amount of money. The usual household spends about $172 on monthly energy costs, according to ENERGY STAR®, or around $2,060 each year. At least half of that is for heating and cooling.

Many homes rely on programmable thermostats, but many people don’t take the trouble to program them. The process is time-consuming, detailed and only gives you a couple of options for desired temperatures. When your house remains at an identical setting throughout the day, it consumes utilities and negatively impacts your monthly costs.

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

Studies Show Smart Thermostats Save on Energy Expenses

Independent studies show these devices can produce large savings.

These studies involved home utility costs in 41 states before and after putting in 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 annually.

With the typical smart thermostat costing between $100–$250, those savings can help it pay for itself. And the majority of local energy companies have 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 set it just like your old thermostat. You’ll turn it up and down, so the thermostat can determine your desired settings. Then, it will start making a program that helps you save money, whether you’re at your house or away. Since it geofences with your smartphone, you won’t have to think about adjusting it when you leave or return.

Pros and Cons of Getting a Smart Thermostat


As we mentioned previously, smart thermostats provide many advantages to your home and heating and cooling expenses, such as:

  • No need to adjust—Your smart thermostat will pick up on your schedule, so you don’t have to use up time setting programs or remember to adjust it.
  • Knows when you get home and take off—As many smart thermostats geofence with your phone, your house will go into an energy-efficient setting when you leave and be comfy when you get back.
  • Remote temperature management—You’ll be able to keep an eye on your residence’s settings from virtually anywhere, because of an app on your phone.
  • Watch heating and cooling use—The majority of smart thermostats give detailed data through their app, such as how long you needed heating and cooling on a specific day.
  • Reminders—Certain smart thermostats will alert you to important maintenance tasks, such as when you’re due to get a new air filter.
  • Added savings—The majority of local energy companies offer rebates for smart thermostats, so check with yours for more information.


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

  • Compatibility—Depending on the type and age of your heating and cooling system, a smart thermostat might not be compatible. If you don’t know, it’s recommended to check with an HVAC professional like Redhawk Heating & Air Conditioning. We also recommend having it professionally installed. This guarantees that you have the proper number of wires and that it’s connected correctly. Some systems don’t include a common wire, which results in compatibility troubles with a smart thermostat. This wire powers your thermostat, so if your home doesn’t have a C-wire, we can add one.
  • Housing situation—If you own your residence and want to reside there for many years, it’s a good investment to have a smart thermostat. If you’re thinking about moving shortly or rent, we advise holding back unless you will take the thermostat with you. If you rent, you’ll usually need to have your landlord’s permission first in advance of installing a new thermostat.
  • Cost—Smart thermostats are more expensive than programmable thermostats, and we recommend 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 regularly at the house? If that’s your situation, you might not see as many savings, but you’ll have the convenience of not being required to program or adjust a thermostat.

Depend on Redhawk Heating & Air Conditioning for Your Smart Thermostat Needs

At Redhawk Heating & Air Conditioning, our number one purpose is to keep your house cozy while helping you conserve more heating and cooling costs. If you’re thinking about installing a smart thermostat, our professionals can help, from choosing the right model to expert installation. Call us at 432-237-0168 today to learn more.