How a Smart Thermostat Can Help You Spend Less on Utilities

December 07, 2020

Keeping your Tuscaloosa home comfortable can consume a good amount of money. The average homeowner spends about $172 on monthly energy expenses, according to ENERGY STAR®, or about $2,060 each year. At least half of that is consumed by heating and cooling.

The majority of homes rely on programmable thermostats, but the majority of people don’t take the time to set them. The process is annoying, involved and only offers you limited options for desired temperatures. When your house stays at the same temperature throughout the day, it requires utilities and negatively impacts your monthly costs.

Smart thermostats pick up on your schedule and change the temp to coordinate it. But can getting one really help you spend less money on heating and cooling? Yes, and here’s why.

Studies Show Smart Thermostats Reduce on Energy Bills

Independent studies have determined these devices can produce major savings.

These studies included home utility 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, generating an average savings of $131 to $145 yearly.

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

How Does a Smart Thermostat Work?

After your smart thermostat is installed, you’ll initially set it just like your previous thermostat. You’ll switch it up and down, so the thermostat can figure out your desired settings. Then, it will start creating a program that helps you save money, whether you’re at home or away. Since it geofences with your smartphone, you won’t have to remember to adjust it when you leave or come home.

Pros and Cons of Having a Smart Thermostat


As we mentioned before, smart thermostats give lots of advantages to your residence and heating and cooling bill, such as:

  • No need to set—Your smart thermostat will pick up on your activities, so you won’t be required to waste time using programs or remember to adjust it.
  • Knows when you come and go—As many smart thermostats geofence with your phone, your residence will go into an energy-efficient setting when you go and be comfortable when you get back.
  • Remote temperature supervision—You’ll be able to watch your house’s settings from just about anywhere, thanks to an app on your phone.
  • Monitor heating and cooling use—The majority of smart thermostats give in-depth data through their app, such as how long you required heating and cooling on a particular day.
  • Reminders—Select smart thermostats will let you know about crucial maintenance tasks, including when it’s time to replace your air filter.
  • Additional savings—Most local energy companies provide rebates for smart thermostats, so check with yours for details.


In spite of that, there’s a few points you should take into account regarding adding a smart thermostat in your house:

  • Compatibility—Depending on the type and age of your heating and cooling system, a smart thermostat might not work. If you’re unsure, it’s best to contact an HVAC professional like KDM Service Corporation. We also suggest having it professionally installed. This confirms that you have the correct number of wires and that it’s hooked up right. Some systems don’t have a common wire, which causes compatibility issues with a smart thermostat. This wire runs your thermostat, so if your residence doesn’t have a C-wire, we can add one.
  • Housing situation—If you own your home and plan to live there for a long time, it’s a smart investment to install a smart thermostat. If you’re planning to move in the next year or rent, we recommend waiting unless you want to take the thermostat with you. If you rent, you’ll typically need to have your landlord’s permission first prior to getting 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 that’s your situation, you might not see as large of savings, but you’ll have the perks of not being required to program or adjust a thermostat.

Trust KDM Service Corporation for Your Smart Thermostat Needs

At KDM Service Corporation, our top purpose is to keep your house comfy while helping you save on heating and cooling expenses. If you’re considering installing a smart thermostat, our specialists can help, from picking the best model to expert installation. Contact us at 205-208-8090 today to learn more.