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Are smart thermostats really money savers? They can reduce heating and cooling costs, but they do not guarantee a lower bill for every home. ENERGY STAR estimates that certified smart thermostats save about 8% of heating and cooling bills, or roughly $50 a year on average. That is a program-level average, not a promise for your household or a universal payback period.
What the savings figures actually mean
ENERGY STAR’s consumer-facing estimate is approximately 8% of heating and cooling bills, or $50 per year, for ENERGY STAR smart thermostats. The agency cautions that actual results vary with climate, HVAC equipment, home characteristics, and household preferences. A home with different weather, equipment, energy rates, or temperature habits may save more or less. ENERGY STAR’s FAQ explains the estimate and its limits.
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That bill estimate is not the same measure as the product certification criteria. ENERGY STAR evaluates heating and cooling equipment runtime reductions separately, using a year of customer-home field data. The criteria include minimum results for weighted averages and for the 20th percentile of homes:
| Measure | Weighted national average threshold | Weighted average home-level 20th percentile |
|---|---|---|
| Heating runtime reduction | At least 8% at the lower 95% confidence limit | At least 4% |
| Cooling runtime reduction | At least 10% at the lower 95% confidence limit | At least 5% |
These are runtime criteria under ENERGY STAR’s field method, not direct promises of the same percentage reduction in energy use or bills. Runtime, energy consumption, and cost depend on factors including the system, fuel, utility rates, weather, and how people use the thermostat. See ENERGY STAR’s key product criteria for the certification method.
#1 Best Overall
- ENERGY STAR certified smart thermostat for home that helps you save energy and stay comfortable.Connectivity : Wi-Fi - 802.11b/g/n 2.4 GHz, 802.11a/n 5 GHz Wi-Fi., Wireless interconnect : Bluetooth Low Energy Please refer to the product description section below for all applicable legal disclaimers.Product note: You can also check your system’s compatibility before purchasing a Nest thermostat with our online Nest Compatibility Checker on the Google Nest support page
- The Nest Thermostat is designed to work without a C wire in most homes, but for some systems, including heating only, cooling only, zone controlled, and heat pump systems, you’ll need a C wire or other compatible power accessory
- Nest Thermostat turns itself down when you leave, so you don’t waste energy heating or cooling an empty home. Lock feature: No
- Programmable thermostat that lets you create an energy efficient schedule in the Google Home app on your Android or iPhone
- Remote control lets family members change the thermostat temperature from anywhere on a phone, laptop, or tablet[1]
Can you get the savings without buying a smart thermostat?
Often, the main energy-saving action is changing the temperature while you are asleep or away—not the internet connection or app. The U.S. Department of Energy says setting the thermostat back 7–10°F for at least eight hours a day can save as much as 10% per year on heating and cooling costs. This guidance concerns setbacks, not a smart-thermostat-specific result. If your current thermostat can schedule them, you may be able to make that change without buying a new device. DOE’s home-upgrade guidance describes the recommendation.
Heat pumps are an important exception to a simple “set it back farther” approach. DOE notes that programmable thermostats have generally not been recommended for heat pumps, although some newer products are designed to make setbacks cost-effective. Follow guidance for your specific heat-pump system rather than applying deep setbacks automatically.
Rank #2
- An Alexa thermostat - Amazon Smart Thermostat is an easy way to switch from a traditional thermostats for homes and help reduce energy usage.
- Create comfort zones throughout your home by connecting to select Alexa devices to automatically adjust heating and cooling based on temperature readings or presence detection.
- Save money and energy - After purchase, Amazon will send you an email with details about home thermostat rebates that may be available from energy providers in your area.
- Save energy - According to EPA estimates, ENERGY STAR certified thermostats save an average of $90 on yearly energy bills.
- Programmable thermostat and automatic control - Create your own home, away and sleep schedules, or have Alexa automatically control the temperature with Alexa+ advanced features.
When buying a smart thermostat makes sense
Before treating a thermostat as an investment, ask what problem it would solve in your home. If you already use effective setbacks with an existing thermostat, the additional bill savings from switching may be limited. A smart model may still be useful for remote control, occupancy-based adjustments, scheduling, or visibility into equipment use. ENERGY STAR describes these functions in its smart thermostat consumer tips.
- Check system compatibility. Verify that the thermostat works with your existing HVAC equipment before buying; compatibility varies by system.
- Look for field-savings evidence. If energy savings are a primary reason for purchase, ENERGY STAR certification is a clear product-level indicator that the model met the program’s criteria. It still does not guarantee a particular household’s savings.
- Compare the features you will use. Scheduling, occupancy sensing, and remote access matter only if they fit your household’s routines and help you manage heating or cooling.
- Consider your starting point. A household that already adjusts temperatures consistently may have less opportunity to benefit from automation than one that often heats or cools an empty home.
ENERGY STAR advises against treating national savings estimates as universal: “EPA does not recommend that energy savings be deemed based on national estimates of energy savings from ENERGY STAR certification, given the significant variation in heating and cooling degree days, HVAC equipment, and home characteristics from one region to the next.”
Rank #3
- Save up to 23% every year on heating and cooling costs, adjusts to your set schedule to save energy when you’re gone and optimize comfort when you’re home. Compared to a hold of 72
- Compatible with 85% of systems, check your system’s compatibility with our online ecobee Compatibility Checker on the ecobee support page
- Change your temperature by easily tapping the color touchscreen or using the ecobee app. Plus, free software upgrades ensure you get the best out of your Smart Thermostat Essential, for years to come
- Automatically adjusts to your set schedule to save energy when you’re gone and optimize comfort when you’re home. Keep track of your energy consumption when you're on the go on the ecobee app
- Easy DIY install. No C Wire, no problem. Get the ecobee Power Extender Kit (PEK) for homes without a C-Wire and keep your walls looking nice with our trim kit – both sold separately
How to make a practical purchase decision
- Try the existing thermostat first. Check whether it can schedule temperature setbacks around actual sleep and away periods. If it can, use those schedules and see whether they suit your household.
- Check HVAC compatibility. Confirm support for your equipment before choosing a smart model, taking extra care with heat pumps.
- Compare certified options and useful features. Use the ENERGY STAR smart thermostat information and consumer tips to assess certification and functions against your needs.
- Check local incentives separately. Rebates and home-upgrade programs depend on location and program rules. DOE outlines rebate pathways, but eligibility and current offers must be confirmed for your area through its home-upgrade information.
There is no universal payback period to quote: that calculation requires a device’s cost and a household-specific estimate of bill savings. DOE’s simulation-driven thermostat benchmarking work is research context, not proof that a particular consumer product will save a given amount. DOE describes that benchmarking project here.
Quick Recap
Rank #4
- EASY DIY INSTALLATION: Do it yourself fast with a built-in level and simple step-by-step instructions. Works with the HVAC equipment found in most homes
- COMMON WIRE REQUIREMENTS: Common wire(C-Wire) required for heat pump and heat/cool only systems. C-wire not required on most systems
- SAVE ABOUT 23% ON HVAC ENERGY: ENERGY STAR-certified and packed with features that help you save money, including flexible scheduling, geofencing, remote access and usage reports
- PRIVACY PROTECTION: Sensi won’t sell your personal information to third parties or leverage your thermostat activity data for targeting or advertising purposes
- CONTROL FROM ANYWHERE: The top-rated mobile app for Android and iOS devices makes it easy to control your comfort from a smartphone or tablet
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