What to Know Before Buying a Smart Thermostat

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As households welcome more smart appliances into their homes for convenience, sustainability and efficiency, upgrading to a smart thermostat has become more pertinent and beneficial than ever. These innovative devices allow you to control your home’s indoor climate remotely, and as they learn your habits and preferences, they automatically adjust heating and cooling to optimize energy usage. Before making the switch, learn how to choose a smart thermostat that best suits your unique needs.

This article discusses the key benefits of smart thermostats, some important considerations when purchasing one, how to select a device compatible with your existing heating and cooling setup, and how you can earn money back from utility bill savings, rebates and demand response programs. With this knowledge, you can make an informed decision that elevates your home’s comfort, enhances convenience, boosts efficiency and helps prevent energy wastage.

What Is a Smart Thermostat?

A smart thermostat is an electronic device that connects to your heating, ventilation and air conditioning (HVAC) system and uses Wi-Fi to communicate with other devices in and around your home. The device monitors and regulates your home’s temperature, humidity levels, air quality and other metrics, depending on your preferences and the model you choose. Unlike conventional, manually controlled thermostats, smart thermostats can learn from your behavior and automatically adjust settings to suit your needs.

What Are the Benefits of Smart Thermostats?

Compared to thermostats in previous decades, smart options have many advantages. If you make the most of your smart thermostat’s numerous capabilities, you and your family can enjoy a higher level of control, convenience, efficiency, savings and comfort. Some of the pros of installing a smart thermostat in your home include:

Enhanced Comfort and Convenience

Smart thermostats are designed to create a more comfortable living environment by adapting to your preferences and making the system easier to use.

  • Personalized climate control: Smart thermostats learn your temperature and humidity preferences and adjust settings automatically to ensure optimal comfort throughout the day.
  • Real-time weather adaptation: These devices can access current weather data online and use it to modify heating and cooling settings based on outside conditions.
  • Voice activation: Many smart thermostats support voice commands or connect to your smart home ecosystem, allowing you to adjust settings hands-free.

Improved Energy Efficiency and Cost Savings

Smart thermostats can optimize how your HVAC system operates and monitor your setup for malfunctions or oversights, leading to significant energy savings and more cost-effective indoor climate control.

  • Efficient fan circulation: Many smart thermostats can use ventilation to balance temperature and moisture between rooms, improving airflow while reducing energy consumption.
  • Utility pricing optimization: With incentive programs, your smart thermostat can adjust HVAC schedules according to peak electricity pricing, helping you save money on utility bills.
  • Automated scheduling for maximum efficiency: You can set specific heating and cooling schedules that align with your daily routines, minimizing energy waste when no one is home.

Seamless Integration With Other Household Systems

With the Internet of Things (IoT), a network of internet-connected appliances and devices around your home, you can control your living space from wherever you are.

  • Mobile app management: You can set your home’s temperature remotely via smartphone apps, tablets and other devices, so if anything unexpected arises, you can quickly and easily adapt.
  • Comprehensive energy management solutions: Smart thermostats can integrate with energy management systems (EMS) to provide detailed insights into overall home energy usage and efficiency.
  • Smart home ecosystem compatibility: Smart thermostats work seamlessly with other smart home devices, such as lighting and security, allowing for coordinated automation across your entire home.

Innovative Features and Alerts

Advanced smart thermostat features ensure you stay informed about your home’s heating and cooling needs while enhancing overall performance.

  • Geofencing technology: This feature detects when you are away or approaching your home using your smartphone’s location services so your HVAC only runs when needed.
  • Remote sensors: You can place additional satellite sensors in multiple rooms to provide accurate temperature readings, sense movement and adjust temperatures accordingly.
  • Data collection: Smart thermostats track energy usage patterns in various zones over time, helping you make data-driven adjustments to your living space and habits.
  • Maintenance notifications: These smart devices can send alerts for maintenance tasks like filter changes or unusual performance issues so you know when to call for a tuneup.

Increased Home Value Perception

Investing in a smart thermostat future-proofs your building and encourages buyers to purchase your technologically up-to-date property should you choose to sell.

  • Sustainability and Efficiency: Smart thermostats enhance your home’s appeal by offering environmentally conscious infrastructure that home buyers know will save them money.
  • Strong return on investment (ROI): The ongoing savings from reduced energy bills, rebates and increased property value make smart thermostats a financially savvy investment.

What Should I Consider Before Installing Smart Thermostats?

While smart thermostats offer many benefits, there are still some things you should keep in mind when weighing your indoor climate control options. Fortunately, these potential drawbacks are usually easy to resolve with some personalization.

Prices Can Be Higher

One smart thermostat can cost hundreds of dollars, which can feel like a sizable investment at first. However, enhanced efficiency lowers utility costs over time and can save you more each year on your energy bills. That means your smart thermostat can pay for itself in less than a year if you fully harness its energy-saving features.

Installation Can Be More Complicated

Basic thermostats of the past generally only have four wires — red for intermittent power, white for heating, yellow for cooling and green for ventilation. Smart thermostats, however, usually require additional wires, including a blue wire, known as the “C” or common wire, to supply the device with constant power. Otherwise, you’ll miss out on key features of your smart thermostat. Luckily, a professional HVAC technician can easily install any additional wires you need.

You May Need Individual Thermostats for Different Zones

If you have a zoned HVAC system, integrating smart thermostats can be more complex because you need multiple zone controls and dampers. If your existing HVAC system isn’t zoned but you want it to be, you’ll likely need to purchase and install multiple smart thermostats to control the heating and cooling in individual zones in your home. Although many smart thermostats have satellite sensors, they only detect heat and motion and don’t act as zoning devices.

You May Need to Customize the Automation

Everyone has their preferences regarding when and how they want their HVAC systems to run. Some smart features can contradict one another if left in the default settings. For example, suppose you’ve enabled time-of-use precooling to lower the home’s temperature before peak hours hit. However, if geofencing senses that nobody is nearby, your precooling may not work as intended. It’s best to configure the various functionalities to interact how you want and specify which should be prioritized when you first install the system.

Can I Earn Energy Rebates by Upgrading to a Smart Thermostat?

After installing a smart thermostat, you can earn back some of your money in several ways. The U.S. Department of Energy (DOE) wants to incentivize households to implement more sustainable, energy-efficient practices for the economy and the environment’s sake, and utility companies want to reduce electricity demand during peak hours to avoid power outages. Some of your energy rebate options include:

The Whole-House Rebate Program (HOMES) Program

Also known as Home Efficiency Rebates (HER), the HOMES program helps homeowners upgrade their HVAC systems, insulation, windows, doors and thermostats. The higher the energy savings your upgrade provides, the more money you’ll receive back from HOMES, and the savings double if you’re a lower-income household. HOMES can refund up to $8,000 of your total energy efficiency retrofit costs, with even higher amounts if you’re in the lower-income bracket.

State-Specific Energy Efficiency Programs

In the southeast of the United States, utility companies offer a variety of rebates, discounts and incentives independent of federal programs. Some examples include:

  • Georgia: Georgia Power offers a Home Energy Improvement Program that allows customers to receive up to $75 rebates for purchasing and installing eligible smart thermostats.
  • Florida: Duke Energy Florida provides $75 bill credits plus another $25 per year if you enroll in their peak-hour usage reduction initiative, the EnergyWise Home Smart Thermostat Program.
  • North and South Carolina: Duke Energy Carolinas offers $50 rebates for qualifying smart thermostats through its Smart $aver® Incentive Program.
  • Alabama: Alabama Power offers various energy efficiency programs, including rebates of up to $200 for smart thermostats under its residential energy efficiency initiative.

Demand Response and Time-of-Use Programs

People’s electricity use across different regions tends to follow a load curve pattern, with the most usage or “demand” spiking at one or two points in the day, known as peak times. Utility companies are increasingly offering clients with smart thermostats financial incentives to reduce their energy consumption during peak times to relieve pressure on the grid. 

Demand Response and Time-of-Use Programs

Energy Star® Rebate Programs

Smart thermostats must meet strict energy efficiency guidelines to earn the Energy Star label from the Environmental Protection Agency (EPA). As such, many utility companies set up rebates with Energy Star-rated smart thermostats that mutually benefit both the user and the provider. Tampa Electric in Florida offers one such incentive — a rebate of up to $50 on Energy Star smart thermostat purchases. To apply, clients must provide:

  • Installation date: The smart thermostat must have been installed no earlier than 2020.
  • Proof of purchase: Verify that the thermostat was purchased new through a paid receipt or invoice.
  • Label verification: Present a photo of the smart thermostat showing the ENERGY STAR label.

What Are the Energy Star Smart Thermostat Requirements?

What Are the Benefits of Smart Thermostats?

Many utility companies nationwide offer rebates to clients who install Energy Star smart thermostats. According to the EPA, to qualify for Energy Star rebate programs, your smart thermostats must meet specific criteria:

  • Basic functionality: The smart thermostat should work independently even when disconnected from the service provider.
  • Energy feedback: It needs to give residents helpful insights about how their settings affect energy use so they can make informed choices.
  • HVAC energy use information: The thermostat should provide details about how much energy the HVAC system uses, like showing monthly run times.
  • Scheduling capability: Users should be able to set up a customized heating and cooling schedule easily.
  • Utility program compatibility: The thermostat should be able to work with utility programs that help prevent blackouts and offer options to deactivate these features, too.

Is Your Chosen Thermostat Compatible With Your HVAC System?

When considering a new smart thermostat, ensuring your current HVAC system can accommodate your new device is critical. Follow these steps to determine if your systems are compatible:

Check Your Current Thermostat Wiring

First, remove the cover of your existing thermostat and examine its wiring. You should see red, white, yellow, green and perhaps even a blue common wire. This will give you a better idea of what connections are available and whether they match the requirements of the smart thermostat you want to install. If your wiring lacks a common wire, you’ll need to have one installed to provide power to your smart thermostat.

Identify Your HVAC System Type

Find out what type of heating and cooling system you have. Common systems include zoned or central air conditioning, air-source or geothermal heat pumps, gas or oil furnaces, and radiant heating setups. Each system has different compatibility requirements for smart thermostats. Knowing your system type will help you choose a thermostat that works effectively with your system and determine how many devices you need to install.

Identify Your HVAC System Type

Find out Your HVAC System’s Voltage

Most residential HVAC systems are low-voltage and typically operate at 24 volts. Fortunately, low-voltage HVAC systems can accommodate almost any type of smart thermostat. However, some smart thermostats may not be compatible if your HVAC system operates at a higher voltage, such as 120 or 240 volts. Check with the manufacturer or consult a professional HVAC technician to ensure your two devices work together.

Consult an HVAC Professional

If you’re still uncertain about compatibility after checking wires, voltage and specifications and consulting the manufacturer’s instructions, it’s wise to consult an HVAC technician for a professional opinion. They can assess your system in person and recommend the ideal smart thermostats to complement your existing setup. Work with a heating and cooling provider that offers full-spectrum services, including HVAC maintenance, thermostat installation and electrical upgrades.

Optimize Your Smart Thermostat Setup With Strada Air Conditioning & Heating

If you’re ready to enhance your home’s comfort and efficiency with a smart thermostat and need guidance on installation or compatibility, Strada Air Conditioning & Heating can help. Our family-owned business has been dedicated to providing top-notch services to our valued clients since 2003. Our team of expertly trained professionals understands the intricacies of today’s varying smart thermostats and can help you achieve seamless integration with your existing systems.

We’re proud of our long list of satisfied clients throughout Florida and surrounding southeastern states and offer personalized consultations to help you choose the perfect thermostat for your home. You can rely on us for expert installation and ongoing support and enjoy peace of mind knowing your system is in capable hands. Choose efficiency and convenience — contact us online today to optimize your indoor climate control and experience the benefits of cutting-edge technology in your home.

Optimize Your Smart Thermostat Setup With Strada Air Conditioning & Heating
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