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From
Angelica Light
Senior Editor, Managing Your Money
Angelica Leicht is a senior editor for Managing Your Money at CBSNews.com, where she writes and edits articles on a variety of personal finance topics. Angelica previously served as an editor at The Simple Dollar, Interest, HousingWire and other financial publications.
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Record-breaking summer temperatures are becoming less the exception and more the rule for millions of Americans across the country – making them a recurring challenge. Dangerously high temperatures In the last few weeks alone, large swaths of the country have seen coronavirus outbreaks, and meteorologists have warned that many areas are likely to see record-breaking high temperatures. And in a significant portion of the country, temperatures may not even drop overnight, leaving air conditioners running around the clock.
These heat waves have prompted weather warnings across much of the country, and for homeowners, the record-high summer temperatures may bring another unwelcome result: a higher electric bill. During extended heat waves, cooling costs tend to rise quickly as HVAC systems have to work overtime to keep indoor temperatures comfortable. And with household budgets still under pressure from increased inflation and higher everyday spending, it’s even more important to find ways to reduce these costs.
That’s one of the reasons why smart thermostats are gaining attention right now. These devices promise to make cooling systems work more efficiently and reduce unnecessary energy consumption, but the savings advertised by manufacturers don’t always reflect the real-world experiences of homeowners. So how much money can you realistically save by switching to a smart thermostat during a heat wave?
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Table of Contents
How much money can a smart thermostat realistically save during a heat wave?
A smart thermostat can absolutely reduce your cooling costs. Studies have proven this time and time again. However, how much you save on your electric bill depends on several factors, including your home’s efficiency, local electricity rates, how often you are home, and how your thermostat is currently managed.
However, many smart thermostat manufacturers suggest homeowners can reduce their overall energy costs by 8% to 26%. However, independent research tends to paint a more conservative picture, with many studies showing average savings of around 10 to 15%.
This is still important when cooling costs skyrocket during extended periods of extreme heat.
For example, if your monthly electric bill rises to $300 during a heat wave and about half of that bill comes from air conditioning, your cooling costs will be about $150. Reducing these cooling costs by 10 to 15% would result in savings of approximately $15 to $22.50 for this month alone.
However, the main reason smart thermostats save money isn’t because they make your air conditioning more efficient. They simply help to avoid unnecessary cooling. Features like automatic scheduling, occupancy sensors, smartphone controls, and learning algorithms can reduce your system’s uptime when no one is home or everyone is sleeping.
And the biggest savings are often achieved by homeowners who have previously left their thermostat at the same temperature around the clock. If you consistently adjust temperatures as soon as you leave the house or overnight, your potential savings with a smart thermostat may be less than expected.
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Is it worth buying a smart thermostat if you want to reduce household costs?
A smart thermostat can help you save money on your electric bill, but it’s not a free solution and comes at a price. That said, whether a smart thermostat makes financial sense for your budget depends largely on your current habits, your HVAC system, and how long you expect to spend in your home.
Many high-quality smart thermostats cost between $100 and $300 before installation. While some homeowners can install a thermostat themselves, others may need professional help installing the thermostat, which incurs additional costs. Fortunately, many utility companies offer discounts that reduce upfront costs, making it easier to justify the investment.
However, for households with high cooling bills, the payback period can be relatively short. If a thermostat saves $20 to $30 per month during heavy air conditioning use, those savings can offset the purchase price within a few years – or sometimes sooner if discounts are available.
The financial benefits also extend beyond your monthly electricity bill. Running your HVAC system less frequently can reduce wear and tear on expensive components, potentially reducing repair costs and extending the life of your equipment. Considering that replacing a central air conditioning system can easily cost several thousand dollars, anything that helps extend its lifespan can add meaningful long-term value.
However, homeowners shouldn’t expect a smart thermostat to solve every problem with high energy bills. If your home has poor insulation, leaky plumbing, outdated windows, or an older, inefficient air conditioner, these issues are likely to have a much larger impact on energy costs. In such situations, combining a smart thermostat with other efficiency improvements often results in the highest financial return.
The end result
A smart thermostat isn’t a magic solution to rising utility bills during a heat wave, but it can be a worthwhile investment for many homeowners. While manufacturer claims often indicate dramatic savings, a more realistic expectation is to reduce heating and cooling costs by approximately 10 to 15% through better temperature management and reduced system runtime. For households facing high utility bills during extended periods of extreme heat, these savings can add up month after month. And when combined with utility discounts, good insulation, and routine HVAC maintenance, a smart thermostat can become part of a larger strategy to keep both your home and your budget more comfortable.
Edited by Matt Richardson
https://www.cbsnews.com/news/how-much-smart-thermostats-save-during-heat-wave/
