What is a Smart Thermostat?

So, let’s dissect smart thermostats like we’re decoding the cheat codes to crushing your energy bill. That old-school jargon and boring manuals, forget them. We are speaking here about making your pad comfortable without doing a serious number on your wallet.

What is a Smart Thermostat? The Ultimate HVAC Cheat Code

So, you’ve heard the buzz: smart thermostat. So, what is a smart thermostat — and why should you care? At its most basic, a smart thermostat is a Wi-Fi-connected device that allows you to control your home’s heating and air conditioning on-the-fly, from anywhere, using a mobile app. It’s like going from a flip phone to the newest smartphone for your HVAC system. It’s intended to provide a mix of convenience, energy efficiency and possible cost savings. And these are not just gussied-up thermometers; they learn you, adapt to your schedule and put you in command from more or less anywhere.

Here’s the lowdown: It taps into the internet network in your home. This Wi-Fi connection is the secret sauce, allowing you to adjust settings from anywhere in the world using a smartphone app or a web interface. And they can show you in real time how much energy you are using.

Smart thermostats are changing the way we manage home temperatures not just control but additional fnctions. They offer intelligence, automation and energy savings that traditional control systems cannot match.

Smart vs. The Old Guard: Why the Upgrade?

Okay, let’s talk evolution. There are your basic manual thermostats and then there are programmable ones that are a bit smarter.

Manual Thermostats: These are the OGs. Basic dial or slide settings. You set it to one temperature, and it stays there until you change it. All of it would be no tech, no schedules, just pure, unadulterated setting of the temperature.
Programmable Thermostats: Then there were these. The big idea? Allow you to schedule different temperatures based on time — cooler when you’re away at work or asleep. They usually include a “hold” feature, which basically changes the digital into a manual thermostat again. The idea here was to save energy based on your schedule. Sounds good, right?
The Trouble With Programmable: Here is where it is getting real. Studies found people with programmable thermostats tended to use more energy than those with plain, old manual models. Why? In other words: human error. Programming them correctly was mystifying, so many users either didn’t even bother using the schedule feature (opting for “hold”) or just programmed them wrong, which was only a little better than having no way to schedule the thing, because they ended up using more energy, not less. One study resulted in 12 percent more energy consumed as a result of people’s confusion about settings. Another discovered that 89% of survey respondents didn’t even use the scheduling feature. That’s why we stopped our ENERGY STAR label on programmable thermostats in 2009.
Enter the Smart Thermostat: Smart thermostats invert the script here. They retain the scheduling feature but this time, with technology explicitly designed to minimize that pesky human error. They include sensors that determine whether you’re home or away, and can adjust settings automatically. And, since it connects to Wi-Fi, you get remote access and notifications, which makes it a whole lot easier to manage your system the right way. They’re meant to save you energy and money and help take the mystery and the pain out of it.

Indeed, when you put the two models side-by-side, smart thermostats boast a series of advanced capabilities that traditional and even digital programmable units just don’t have.

How Does This Magic Box Work?

It’s not magic, it’s tech, and it’s kind of awesome. Smart thermostats achieve their climactic control through a mix of hardware and software.

Wi-Fi Connection: This is an absolute must for a smart thermostat. It must be connected to your home network. This connection allows it to talk to your smartphone app, receive software updates, grab weather forecasts and send you reports. In the event that your Wi-Fi craps out, not to worry, you will find that it is possible to operate it manually in most cases. But Wi-Fi is your tie to the world for the smart stuff.
Sensors and Data Collection: These are chock full of sensors to determine what’s going on in your home. I mean we’re talking temperature, humidity, occupancy, even light sensors. They’re constantly gathering data about your home environment. Some models also have extra sensors for multiple rooms for a more complete picture.
Learning and Algorithms: This the brains of the operation. Smart thermostats rely on complex equations (algorithms) to crunch all of that data from sensors and your usage patterns. They get to know your routine and preferences over time, and make smart decisions on when to change the temperature. They learn your tastes and habits organically.
Cloud Processing: The thermostat frequently sends data to cloud servers when connected to Wi-Fi. These servers house data, evaluate patterns and can also pull in external info such as weather forecasts in order to fine-tune adjustments.
The HVAC at work: All of this information and determining generates commands from the thermostat to your heating and cooling system (HVAC). It instructs the system to heat, cool, or run the fan to maintain your set temperature and conserve energy.

It’s the mini weather station and personal assistant for your house, always tuning comfort and efficiency.

The Features: Much More Than Temp Control

Fine, so we know they’re smart. But what really can they do? Smart thermostats are packed with features to make your life easier and save you money.

Knowing Your Schedule (The Auto Cheat Code): Forget difficult programming manuals. Some smart thermostats monitor your adjustments and learn your routine. After some initial watching, they begin to automatically adjust themselves at around the time you would be at work, asleep or returning home. This “auto schedule” diminishes the likelihood of human error and is intended to save energy.
Mobile App Controlled: This is big. Via the mobile app (typically made by the thermostat’s manufacturer), you can monitor and adjust your house’s temperature from anywhere with an internet connection. Memory slip on the AC when you went away on vacation? No problem, join the app. Coming home early? Turn up the heat on your way over.
Energy Tracking and Reports: Want to know where your money’s going? Plenty of smart thermostats monitor your HVAC usage and spit out a bunch of fancy reports. They display your consumption habits, and even offer suggestions, or provide some insight around how not to consume as much electricity. The more advanced models can even warn you if they detect a problem with your HVAC system.
Smart Home Integration (Voice Flex): These thermostats get along with others. A lot of them also work with smart home systems, such as Alexa, Google Assistant or Apple HomeKit. Which in turn means you can set the temperature with voice commands from a smart speaker. “Hey Google, set the thermostat to 72” — talk about showing off.
Geofencing (Location Awareness): Some smart thermostats monitor your smartphone location to know when you’ve left or are returning. Or they can learn to set the temperature when they notice you’re about to arrive. That means you’ll feel comfortable when you get there, and you don’t waste energy when you’re gone — and you don’t have to remember a thing. Because most people have their phone on them at all times, it can be a very accurate way to tell whether a house is occupied.

Weather Sensitivity: A few of the models are weather sensitive. They could consider local weather data, such as temperature or humidity, to fine-tune settings.
Maintenance Reminders: A few smart thermostats can notify you when you need to perform routine maintenance, such as swapping out your HVAC system’s air filter. This helps your system perform at its peak and last longer.
Occupancy Sensors: Instead of relying only on the knowledge of your routine, many occupancy sensors have their own sensors that detect movement or presence in the home. If no one is detected in a while, they can revert to an energy-saving “away” mode autonomously. Nest utilises passive infrared (PIR) motion sensors, which are frequently mounted behind a grille.

Zoned Systems: In larger homes or homes where specific areas may be designed to function independently, (like an upstairs level where smart thermostats are in use, for instance) they can be part of a zoned system. This allows you to separately manage temperatures in different rooms and/or zones, providing greater comfort, and potentially leading to more energy savings by not heating/cooling empty spaces.
Safety Temperatures: Some have programming that can keep the temperature above or below a certain level, to cut down on issues with frozen pipes or continuing to warm a space even when it’s set to “off.”
IAQ Device Compatibilty: Some work with indoor air quality products such as humidifiers, dehumidifiers, and ventilators for a more comfortable home and a healthier one.

Together, they provide a dynamic approach to climate control that is so much more than just setting a temperature.

The Payoff: Energy Efficiency and Cash Saved

Alright, let’s talk results. Do any of these things really save you money? Or the answer to that, really — yes, they can.

Heating and cooling account for a big chunk of your home energy costs – nearly half, according to the U.S. Department of Energy, for the average American household, which adds up to more than $900 a year. And if you’re smart about how you manage this, you can save big.

Automated Savings: The underlying concept is to turn off the heat or air-conditioning when you don’t need it, such as when you’re asleep or away. Turning your thermostat back 8°F to 10°F daily can save you around 10% yearly. Smart thermostats do this work for you, removing the burden from saving.

Study Says:

Non-affiliated research into real life Nest customers reported savings of 10-12% on heating and 15% on cooling. Nest promised typical savings of about $140 a year.
Ecobee said the savings added up to a 23% reduction in heating and cooling costs, or around $200 per year per customer, based on internal analysis from 2013.
A third-party study showed that Nest saved people an average of 10% to 12% on heating and 15% on cooling.
Another study involving Ecobee thermostats found electricity savings at an average of 16 percent and gas savings at an average of 10 percent over 12 months.

The precise savings depend on your home, habits and even the weather, but many studies show they do work.

Beyond the Bill:

More Comfort, Less Effort: They adjust to YOUR schedule, so that you never have to sacrifice comfort for convenience.
Convenience: The convenience is next-level with remote control and automation. There is something to be said for being able to change the temperature from your couch, or another city. They are usually easy to use.
Green Benefit: Using less energy means you’ll end up with a smaller carbon footprint, which can help support sustainability initiatives. Residential energy use related to emissions is a considerable portion of it with heating and cooling.
Utility Rebates (The Rebate Flex): Some utilities would like to see you acquire these. Why? Smart thermostats can help alleviate strain on the grid during peak times. That means then, utilities will often provide rebates or incentives to reduce the up-front cost by quite a bit. Check your local utility’s website — that’s like finding a coupon for energy savings. Lately, some utility programs will even reward you with a bill credit for cutting usage during “energy rush hours” as well.

The value proposition is pretty simple: Save money, be comfortable, and do a little bit of good for the planet.

You’re New: Quick Facts to Get You Started

Ready to make the leap? There are a couple of checks to make before you buy one to ensure a smart thermostat will work with your setup.

Compatibility with Heating, Ventilation, and Air Conditioning (HVAC) System: This is the key one. Not all smart thermostats are compatible with all systems of heating and cooling. This is particularly so if you have an older house or a non-standard layout. Many manufacturers have checkers for compatibility on their websites. Know if you have a gas, electric, heat pump or boiler system.
Wi-Fi Network: You require a strong, stable Wi-Fi connection where the thermostat will be installed. A weak signal could be a problem. Some models, including Sensi, also require a 2.4Ghz network. If your signal is weak, pick up a Wi-Fi extender.
Power Source (The C-Wire Saga): Nearly all smart thermostats require a constant power supply. This typically comes from a “C-wire” (common wire) in your HVAC system. In older homes, especially those with older HVAC systems, you may not have a C-wire at all. If you don’t already have one, you may have to hire a professional electrician or HVAC technician to install one. Some clever thermostats can exist without a C-wire, or a brand like Ecobee might have an adapter, but you’ll need to review the requirements of the manufacturer.

Do It Yourself Installation or Call a Pro?

It’s not rocket science to install one, and plenty of homeowners can do it themselves. But if you don’t feel comfortable working with electrical wiring, it’s best to call in a pro.

Here’s the simple version of the game plan:

Power Down To be safe, switch off power to your HVAC system at the circuit breaker.
Old Thermostat Off: Pick up the faceplate off of your old thermostat.
Picture Time: Snap a picture of the wiring connections before you start to disconnect anything. This will be your lifesaver if some of this starts to get confusing later.
Label Wires: With the stickers that came with your new thermostat, label each wire according to the terminal it was attached to on the old one. Do this one wire at a time.
Remove & Disconnect: Remove the old baseplate and disconnect the old wires. Trash any jumper wires since most new thermostats come with jumpers already installed.
New Base On: Screw the new smart thermostat mounting baseplate to the wall with the provided screws.
Wire It Up: Fit the labeled wires to the same terminals of the new base. Use your photo as a guide.
Install Thermostat: If your unit uses batteries insert your batteries. Press the thermostat base onto the base.
Power Up: Flip the breaker on.
Setup Time: Just follow what’s on the screen; you may also need to download the manufacturer’s app. You will hook up your Wi-Fi (usually by scanning a QR code or entering a PIN), name your thermostat, and do the initial programming. You may need to give the app setup permission for Bluetooth or Location access.

The app usually walks you through the entire process. If you’re a DIY-er, an app like Sensi’s “Not Mounted” setting will guide you through wiring and configuring it, step by step.

The Flip Side: The Downsides

No technology is flawless, and smart thermostats come with a few possible pitfalls.

Up-Front Cost: The initial cost of a smart thermostat is more than traditional or basic programmable thermostats. Depending on features and brand, you may pay anywhere from $80 to more than $300. Professional installation is an additional cost on top of that. The energy savings down the line, however, will more than pay for that.

Internet Byproduct: Wifi is required for Remote (control from anywhere), programs and reporting. If your internet is less than reliable or goes down altogether, you will lose some of that smart functionality, although manual operation should still be an option.

Privacy and Security: These devices are all about the data — on your home, your habits, temperature readings, energy use, and even potentially where you are located, if you use geofencing. This might be a bother to some. The data, while seemingly benign, could be used to determine when your home is occupied, or vacant. More importantly, like any Internet of Things (IoT) gadget, a smart thermostat could serve as an entrance point for hackers to infiltrate your home network and other hardware. Attacks have happened.

How to Stay Safe: Look over the manufacturer’s privacy policy. Turn on security options such as data encryption and multi-factor authentication (MFA) if you can. Change default passwords. Follow the device software and apps’ update. Protect your Wi-Fi network with strong passwords and encryption. It could be worthwhile to have a dedicated Wi-Fi network only for your smart home devices. If you find any alien devices then delete them from your network.

Complexity / User Interface: Even with regular attempts to simplify, smart thermostats or their associated apps and web portals remain confusing for certain users. Research shows that users may desire additional training with installation.

Compatibility and HVAC Issues: Unfortunately, even if your system appears to be compatible, strange issues may arise. Reddit Shareholders on RedditMini mentioned potential issues, such as Nest thermostats potentially “frying” control boards, but opinions are split and any number of other issues (such as having the lack of a C-wire or bad wiring) could be at fault. Pros have conflicting feelings about different brands. Problems like “short cycling” (in which the HVAC turns on and off constantly) can arise due to incompatible thermostats, placement problems, or, in some cases, low batteries.

Sensor Accuracy: One sensor located where the thermostat is may not accurately report occupancy conditions for the entire house, and may cause the system to turn off too early even though someone is home, simply spread out from the one sensor. Some sensors may help with that; but that’s an added expense/complexity.

Grid Impact: On a more macro level, if smart thermostats in an area are so numerous that they behave uniformly, they could create load synchronization, resulting in larger spikes of energy demand at certain times.

Being aware of these potential pitfalls can let you plan, and determine if the benefits outweigh the downsides in your particular case.

The Players: Whos Making These Things?

It’s a rat race out there. Some of the marquee names you can catch are:

Nest (Google): This company is the original in the ‘learning’ thermostat. It is beautiful and good for learning, that’s said by many. But not all HVAC techs think that or even report problems, and user results vary a lot.

Ecobee: A big one, this company is all about sustainability and frugality. Frequently comes with remote sensors to assist with averaging the temperature across rooms. Receives mixed feedback from pros and users on how easy it is to use and the accuracy of its sensors, but some positive mentions.

Honeywell: A standard name in thermostats, with several smart models available. There have been connection issues reported with certain older Wi-Fi models, while newer Pro series models are praised by some pros. The Sensi brand is under Emerson/Copeland. Reliability and simplicity The Sensi wins rave reviews from some pros as reliable and simple.

Carrier: Provides a selection of Wi-Fi smart thermostats created to work with their systems.

Emerson Electric (Sensi): As previously stated, Sensi thermostats are included under this company (now Copeland). Known for reliability and simplicity to use, plus a promise not to sell personal data.

Some other brands, including Johnson Controls and Sinope, also have a smart thermostat solution. The trick is to find one that works with your system and has the features you need.

The Big Picture on Trends and Sustainability in the Market

These aren’t just a gadget fad, but part of a larger movement.

Market size: The global smart thermostat market is worth billions and is expected to grow substantially. Now the biggest share is in North America, but Europe and Asia Pacific are growing fast.
Integration: They are being more heavily integrated into larger smart home ecosystems, linking up with other devices for an all-encompassing experience.
AI & Learning: AI and machine learning are used to enhance predictive analytics and adaptive learning solutions to make them smarter.
Commercial Adoption: Smart thermostats are being adopted for business too, they are used for energy management in both offices and retail premises.
Thrust for sustainability: Energy efficiency provides the big push. Governments around the world are touting energy-saving tech with rules and cash-back deals. Smart thermostats can contribute to energy and carbon saving by homeowners and businesses. Power utilities team up with manufacturers to promote adoption with rebates and programs.

There are likely challenges such as load harmonization between the grid and synced devises, but the general direction trend is smart thermostats being an essential part of the mix in residential and commercial energy management.

Conclusion – Is a Smart Thermostat Right for You?

What is a smart thermostat? This is a connected home product that’s easy to use, simple to install and can actually make your home smarter, and less of a waste of resources. They provide a level of convenience and understanding that manual and even programmable thermostats simply cannot compete with.

Though there’s an upfront cost and some tech hiccups to think about, the potential for major energy savings and utility rebates, not to mention the comfort factor, make them a compelling upgrade for many homeowners. They put you in control at your fingertips all while helping make your home smarter and more efficient – and if used properly, they could possibly help lower your energy bills.

FAQ

What is a smart thermostat? It is a Wi-Fi connected contraption designed to automatically change your home’s heat and air-conditioning, sometimes learning from you and controlled remotely with an app.

How does a smart thermostat learn the temperature? It measures the ambient temperature in your home using built-in sensors.

IS SMART THERMOSTAT WORTH IT? They can save you money because they know when to reduce heating and cooling (depending on your schedule, occupancy, learning and sensors in use) to reduce bills at times when you don’t need them. They’ll also offer data and insights to help you maximize use.

How does a smart thermostat work with my HVAC system? They usually attach it via standard thermostat wires and communicate with the control board of the system to send blower activation, cooling and heating signals. The majority need a constant source of power, typically via a C-wire.

Can I put a smart thermostat in any house? It should work – yes, as long as your HVAC and wiring are compatible. If you need it, you may have to have a C-wire installed or have an adapter sent to you. It’s better to be safe in the end and check compatibility before you actually buy something.

Is it necessary to have a professional install it? Many homeowners can mount these themselves, especially with app support, but if you don’t feel comfortable with electrical wiring, you should consider a professional.

What if my Wi-Fi goes out? Advanced features depend on Wi-Fi, but you can typically still use a thermostat manually in the event of an internet outage.

That’s the breakdown. Now get out there and crush those energy bills.

What is a Smart Thermostat?