Could a smart thermostat save you money?

Nick Daws explain why a smart thermostat might save you money on bills

As energy prices continue to rise, many of us are exploring ways to cut costs while staying comfortable. 

One increasingly popular solution is the smart thermostat. But what exactly is a smart thermostat and can it really save you money? In this article I’ll try to answer these questions and discuss my own experiences with one.

What is a smart thermostat?

A smart thermostat is an internet-connected device that allows you to control your home’s heating (and sometimes cooling) remotely via a smartphone app, tablet or computer. 

They may use advanced technology such as machine learning, motion sensors and geolocation to optimize your heating schedule, based on your habits and preferences.

Unlike traditional thermostats, which require manual adjustment or rely on fixed schedules, smart thermostats can automatically learn your routines and adjust your heating to ensure comfort and energy efficiency.

Smart thermostats work with most boilers – including gas, heating oil and electric boilers – but not all. As long as your system can be controlled by a standard thermostat or programmer, however, you should be fine.

Benefits of a smart thermostat

Energy savings – Smart thermostats can significantly reduce energy wastage by heating your home only when needed. For example, they can lower the temperature when you’re out and preheat the house before you return. 

Remote control – Forgot to turn off the heating before leaving the house? No problem. With a smart thermostat, you can adjust settings from anywhere using your smartphone.

Insights and reports – Most smart thermostats provide detailed energy usage reports, helping you understand your consumption patterns and identify opportunities to save money.

Smart integrations – Most models integrate with voice assistants like Amazon Alexa, Google Assistant, or Apple HomeKit, allowing for hands-free adjustments.

More from Nick Daws

Top smart thermostat brands

Here are the three most popular smart thermostat brands available in the UK, along with their pros and cons.

1. Nest Thermostat (Google)

Pros

• sleek design and intuitive interface
• learns your habits and automatically creates a heating schedule
• works seamlessly with Google Home and integrates with other smart devices
• energy-saving features like ‘Eco Mode’ when you’re away

Cons

• higher up-front cost compared to some competitors
• limited compatibility with certain heating systems

2. Hive Active Heating (British Gas)

Pros

• easy to use and install
• works with a wide range of heating systems
• excellent app interface with multiple scheduling options
• offers add-ons like smart radiator valves and light bulbs for a complete smart home experience

Cons

• lacks advanced learning features compared to Nest
• some additional features require a monthly subscription

3. Tado Smart Thermostat

Pros

• strong focus on energy efficiency with geofencing and open-window detection
• offers granular control with smart radiator valves
• provides detailed energy-saving reports
• compatible with almost all UK heating systems

Cons

• subscription required for premium features like geofencing
• simpler design might not appeal to those looking for a high-tech aesthetic

My experience

I got a Hive smart thermostat for my gas central heating in October 2024. I chose this based on the advice of my regular heating engineer, Dave. He has a Hive himself and recommended it for its simplicity and ease of operation. 

I paid Dave to supply and fit the device, for which he charged around £300. If you’re a keen DIY’er it’s perfectly possible to install a smart thermostat yourself, maybe with the aid of an online guide and/or YouTube video. Personally I was happy to leave the manual parts of the job to Dave, though I assisted with the electronic and online aspects.

With a Hive (and I assume other smart thermostats) you basically get three components. There is a hub you have to connect to your router using a cable; the thermostat itself, which I have on the wall of my living room (though you can detach it and move it from room to room if you like); and the main control unit, which is where my old controller used to be in the kitchen. You’ll also want to download the relevant app, so you can control the heating using your phone.

Set up was pretty straightforward. The only delay was when connecting the app. For some reason this took a few tries (Dave told me this was common in his experience), but we got there eventually.

I set up a weekly schedule for my heating and hot water, and after that basically let the thermostat do its thing. I’ve found the insights page on the app really helpful for seeing temperature changes in the house throughout the day and when the heating has cut in and out. This works far more efficiently than my old manual thermostat ever did, and is undoubtedly saving me money by only heating the house to the temperature I require. 

One small issue I experienced was that initially I kept getting a message on the app that the internet connection was weak. After a bit of research I discovered this was being caused by the fact I’d left the Hive hub too close to my router. Once I moved it a couple of feet to the window sill, the problem vanished and never returned.

Hints and tips for making the most of your smart thermostat

Here are some tips on maximizing the energy-saving potential of your smart thermostat.

1. Let it learn your routine

If your smart thermostat has a learning feature (like the Nest), give it a week or two to adapt to your schedule. Avoid making constant manual adjustments, as this can interfere with its ability to learn.

2. Use geofencing features

Many smart thermostats, such as Tado, use geofencing to adjust the heating when no-one is home. Ensure this feature is activated and that your phone’s location services are enabled for the app.

3. Set realistic temperatures

Aim for a comfortable yet energy-efficient temperature, typically around 18-21°C. Lower the temperature slightly at night or when you’re away to save more.

4. Take advantage of zones

If your system supports zoning (e.g. Hive with smart radiator valves), heat only the rooms you use regularly. For instance, keep bedrooms cooler during the day and focus heat in living areas.

5. Schedule around your lifestyle

Use scheduling tools to preheat your home only when necessary. For example, program the heating to turn on 30 minutes before you wake up or arrive home.

6. Use insights to adjust habits

Review the energy usage reports provided by your thermostat’s app to identify patterns of wastage. Adjust your settings accordingly to reduce unnecessary heating.

7. Integrate with smart home devices

Pair your thermostat with voice assistants like Alexa or Google Assistant for convenient control. You can also integrate it with other smart home devices, such as lights or sensors, for automated routines.

8. Utilise holiday modes

Going away? Use the vacation or holiday mode to keep your home at a low but frost-protecting temperature while minimizing energy use.

9. Check compatibility with your boiler

Ensure your boiler and heating system are compatible with your chosen thermostat. This will avoid efficiency issues and ensure full functionality. Personally I have a traditional heating system with a separate hot water tank, but others will have a more modern combi boiler. It’s essential to purchase the right smart thermostat for your system (Hive have two different versions for traditional and combi systems, for example).

10. Stay updated

Keep your thermostat’s firmware up to date. Manufacturers often release updates to improve efficiency, fix bugs or add new features.

Bonus tip: combine with other energy-saving measures

Combine your smart thermostat with energy-efficient practices, such as proper insulation, draught-proofing and using energy-saving curtains, for even greater savings. 

In addition, try turning down your thermostat by one degree. According to the Energy Saving Trust, this can save you up to £145 annually on your heating bills. 

Closing thoughts

So can a smart thermostat save you money? My short answer is yes – though how much will depend on your usage habits and the size of your household. 

By reducing energy wastage, offering precise temperature control, and providing actionable insights, it is estimated that a smart thermostat can lower your energy bills by 10-20% annually. This can translate to savings of £100-£200 a year.

While the initial investment for a smart thermostat may seem steep (ranging from £100 to £300, plus installation), for most people the long-term savings should outweigh this. Additionally, some energy providers offer discounts or schemes to help with purchase.

A smart thermostat isn’t just about saving money, though. It’s also about convenience, comfort and doing your bit for the environment by reducing your energy consumption. 

Whether you opt for Nest, Hive or Tado, investing in a smart thermostat should set you on the path to a more energy-efficient and comfortable home.

As always, if you have any comments or questions about this article, please do leave them below. 

Nick Daws writes for Pounds and Sense, a UK personal finance blog aimed especially (though not exclusively) at over-fifties.

Photo credits: Pexels