What is a smart thermostat and how can it save me money?

A smart thermostat is a Wi-Fi-enabled device that automates home temperature settings for optimal performance. They learn your preferences and can automatically adjust to energy-saving temperatures, potentially saving you money on heating and cooling costs.

What are some key features to look for in a smart thermostat?

Key features include learning algorithms that adapt to your schedule, geofencing to adjust temperatures based on your location, remote control via smartphone, and energy monitoring to track usage and identify savings opportunities.

How does geofencing work with a smart thermostat?

Geofencing creates a virtual boundary around your home and uses your smartphone's location to automatically adjust the thermostat. When you leave the boundary, the thermostat can set back the temperature to save energy, and when you approach home, it can return to your preferred setting.

What is a learning algorithm and how does it help save energy?

Learning algorithms analyze your temperature preferences and daily routines to predict your heating and cooling needs. The thermostat then automatically adjusts its settings to maximize comfort while minimizing energy consumption, adapting to both your behavior and environmental changes.

Are smart thermostats easy to install and use?

Many smart thermostats are designed for easy self-installation, often taking 30 minutes or less, and come with user-friendly apps for remote control and monitoring. They also integrate with smart home systems like Amazon Alexa, Google Assistant, and Apple HomeKit for voice control.

Save Money w/ Smart Thermostats

By Home Sidekick Team May 26, 2025 9 min read 1827 words

smart thermostatenergy savingcomparisonreviewhome automation

Are you tired of sky-high energy bills? Do you want to make your home smarter and more energy-efficient? Then it's time to consider a smart thermostat. These devices offer a range of features designed to help you save money, enhance comfort, and simplify your life. This guide dives deep into the world of smart thermostats, exploring their benefits, features, and how they can help you take control of your home's climate and your energy spending.

Understanding Smart Thermostats and Their Benefits

A smart thermostat is a Wi-Fi-enabled device that automates your home's heating and cooling system. Unlike traditional thermostats, which require manual adjustments, smart thermostats learn your preferences, adapt to your schedule, and even respond to external factors like weather conditions. This leads to significant energy savings and a more comfortable living environment. According to Natural Resources Canada, smart thermostats can help you save about eight percent on your yearly home energy costs for heating and cooling¹.

What Makes a Thermostat "Smart"?

It's more than just Wi-Fi connectivity. According to Navigant Research, a true smart thermostat utilizes algorithms to optimize HVAC settings¹². These algorithms enable features like:

Learning Capabilities: Adapting to your lifestyle and the changing seasons.
Occupancy Detection: Sensing whether you're home and adjusting the temperature accordingly.
Geofencing: Using your smartphone's location to anticipate your arrival or departure and adjust the temperature.

Key Features That Save You Money

Smart thermostats come packed with features designed to minimize energy waste and maximize savings. Here are some of the most impactful:

1. Remote Control and Monitoring

One of the most appealing features of a smart thermostat is the ability to control it from anywhere using your smartphone, tablet, or computer. Whether you're at work, on vacation, or simply in bed, you can adjust the temperature settings with ease. Forgot to turn down the heat before leaving for vacation? No problem! Simply open the app and make the adjustment. Many smart thermostats also provide detailed energy usage reports, allowing you to track your savings and identify areas where you can further optimize your energy consumption³.

Example: Imagine you're on your way home from work and realize you forgot to adjust the thermostat before leaving. Using the remote control feature, you can pre-cool your home so it's comfortable when you arrive, without wasting energy all day.

2. Geofencing: Location-Based Automation

Geofencing creates a virtual boundary around your home and uses your smartphone's location to automatically adjust the temperature. When you leave the geofence, the thermostat enters an energy-saving mode. As you approach home, it returns to your preferred settings¹⁵. This feature ensures that you're not heating or cooling an empty house, leading to significant savings. Some thermostats allow customization of the geofence radius⁷.

Example: Set a geofence with a 3-mile radius around your home. When you leave that area, the thermostat automatically lowers the heat in the winter or raises the AC in the summer. As you re-enter the area, it prepares your home for your arrival.

3. Learning and Adaptive Scheduling

Many smart thermostats learn your temperature preferences and automatically create a schedule that adjusts to energy-saving temperatures when you are asleep or away¹. These learning algorithms analyze your behavior patterns, daily routines, and even external factors like weather forecasts to optimize your heating and cooling requirements⁶. Over time, the thermostat becomes increasingly efficient at predicting your needs and minimizing energy waste. Some models also have an auto-away feature¹⁵.

Example: The thermostat learns that you typically lower the temperature at night and raise it again in the morning. It automatically adjusts the schedule to reflect these preferences, eliminating the need for manual programming.

4. Smart Home Integration and Voice Control

Most smart thermostats can be integrated with other smart home devices and voice assistants like Amazon Alexa, Google Assistant, and Apple HomeKit⁴. This allows you to control your thermostat using voice commands, create customized smart home routines, and integrate your heating and cooling system with other devices like smart lighting, blinds, and security systems. Voice control offers hands-free convenience, while integration with other devices allows for even greater automation and energy savings¹⁷.

Example: Say, "Alexa, turn up the heat in the living room," or create a "Goodnight" routine that automatically lowers the thermostat, turns off the lights, and locks the doors.

5. Energy Monitoring and Reporting

Smart thermostats track your HVAC usage and provide insights into your energy consumption patterns³. They generate detailed reports that show your weekly and monthly energy usage, allowing you to follow trends over time and identify areas where you can further optimize your energy efficiency. Some units even provide personalized tips and recommendations for reducing your energy consumption and saving money¹⁷.

Example: Compare your energy usage this month to the same period last year to see the impact of your new smart thermostat. Identify peak usage times and adjust your schedule to reduce energy consumption during those periods.

Choosing the Right Smart Thermostat for Your Needs

With so many smart thermostats on the market, it's essential to choose one that meets your specific needs and budget. Here are some factors to consider:

1. Compatibility

Before purchasing a smart thermostat, ensure it's compatible with your home's heating and cooling system. Most smart thermostats are compatible with standard low-voltage systems (12-24 volts)²². However, some may not work with high-voltage systems or certain types of heat pumps. Use the manufacturer's online compatibility checker to verify compatibility before making a purchase³⁰.

2. Features

Consider which features are most important to you. Do you prioritize geofencing, learning capabilities, smart home integration, or energy monitoring? Some thermostats offer advanced features like air quality sensors, remote room sensors, and voice control. Choose a thermostat that offers the features you'll actually use²⁹.

3. Budget

Smart thermostats range in price from under $100 to over $300. Determine your budget and look for a thermostat that offers the best value for your money. Remember to factor in potential energy savings when calculating the overall cost. The Amazon Smart Thermostat is a good budget option¹⁶.

4. Ease of Installation

Most smart thermostats are designed for easy DIY installation. However, if you're not comfortable working with electrical wiring, you may want to consider professional installation. Check the manufacturer's instructions and online resources to get an idea of the installation process. DIY installation typically takes 20-30 minutes²⁷.

5. Reviews and Ratings

Read online reviews and ratings from other users to get an idea of the thermostat's performance, reliability, and ease of use. Look for thermostats that have consistently high ratings and positive feedback²⁶.

Popular Smart Thermostat Models

Ecobee Smart Thermostat Premium: Best overall, advanced features, works with most smart home systems¹⁶.
Google Nest Learning Thermostat: AI-powered energy savings, sleek design, easy to use²⁵.
Amazon Smart Thermostat: Best budget option, integrates seamlessly with Alexa¹⁶.
Honeywell Home T9 Smart Thermostat: Best for remote room monitoring with sensors²⁹.
Sensi Touch 2 Smart Thermostat: Most user-friendly with a responsive touchscreen²⁶.

Installation: A Step-by-Step Guide

Installing a smart thermostat is a relatively straightforward process that most homeowners can do themselves. Here's a general step-by-step guide:

Turn off the power: Switch off the circuit breaker that controls your heating and cooling system¹⁴. This is crucial for your safety.
Remove the old thermostat: Remove the faceplate and take a picture of the wiring for reference¹⁴.
Label the wires: Use the provided labels to identify each wire²⁷.
Disconnect the wires: Disconnect the wires from the old thermostat.
Install the new baseplate: Attach the new baseplate to the wall using the provided screws. Use a level to ensure it's straight.
Connect the wires: Connect the wires to the corresponding terminals on the new thermostat base.
Attach the smart thermostat: Attach the thermostat display to the baseplate until it clicks into place²⁷.
Turn the power back on: Switch the circuit breaker back on.
Set up the thermostat: Follow the manufacturer's instructions to connect the thermostat to your Wi-Fi network and configure your settings¹⁴.

Important Note: Some smart thermostats require a C-wire (common wire) for continuous power²². If your existing thermostat doesn't have a C-wire, you may need to install one or use a C-wire adapter.

Maximizing Your Savings with Smart Thermostat Rebates and Incentives

Many utility companies and government agencies offer rebates and incentives for installing energy-efficient smart thermostats⁵. These rebates can significantly reduce the upfront cost of the thermostat and make it even more affordable to upgrade your home. Check the ENERGY STAR website or contact your local utility company to find out about available rebates in your area⁸. Some utilities offer instant rebates on smart thermostats purchased through their online marketplaces²⁰.

Focus on Energy, for example, offers a $50 rebate on qualified smart thermostats². Ameren Illinois offers rebates and point-of-sale discounts on select smart thermostats⁵.

Conclusion: Take Control of Your Energy Savings Today

Investing in a smart thermostat is a smart decision for homeowners looking to save money, enhance comfort, and simplify their lives. With features like remote control, geofencing, learning capabilities, and smart home integration, these devices offer a range of benefits that can significantly reduce your energy consumption and lower your utility bills.

Next Steps:

Research: Explore different smart thermostat models and compare their features, prices, and compatibility.
Check for Rebates: Contact your local utility company to find out about available rebates and incentives.
Install: Install the smart thermostat yourself or hire a professional installer.
Monitor: Track your energy usage and adjust your settings to maximize your savings.

Don't wait any longer to start saving money and enjoying the benefits of a smarter home. Upgrade to a smart thermostat today and take control of your energy future!