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Smart Thermostats

How Much Money Does Nest Thermostat Save?

Shannon Flynn
Shannon Flynn
June 13, 2022
How Much Money Does Nest Thermostat Save?

You likely have friends, family members, or colleagues who won’t stop raving about their Nest Thermostat and how much money they’ll save on their monthly energy bills.

Have you ever wondered if this type of smart thermostat saves homeowners money? The Nest Thermostat has an attractive design and helps you manage your home's temperature better. But can it reduce energy consumption?

You may be interested in buying a Nest Thermostat, but you aren’t sure if the energy savings are worth it. How much energy does a Nest Thermostat use? Do Nest Thermostats use a lot of electricity? These questions are common, and you want to know the answers before shelling out cash.

Let’s explore how much a Nest Thermostat can save you each month and whether this smart thermostat brand is worth the investment.

Overview: Nest Thermostats

Google currently offers two smart thermostats: 

The Nest Learning Thermostat is Google’s premium smart thermostat, meaning it has a higher retail price, comes with a two-year warranty, learns your temperature preferences, includes extra features, and is compatible with Nest Temperature Sensors.

The Nest Thermostat is a basic version of the Nest Learning model but still offers you greater control over your home’s temperature. Compared to the Nest Learning Thermostat, it’s more affordable and best suited for homeowners new to Nest products.

If your main goal is to save on energy bills, both Nest thermostats will do the job. The Nest Thermostat may require more manual control, whereas the Nest Learning model is more high-tech and does not require as much work on your end.

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Nest Saves Money & Energy: White Paper Findings

In February 2015, Nest released a white paper that measured and shared energy savings results based on three studies of the Nest Learning Thermostat. Two of the studies were independently managed by third parties. One took place in Oregon and the other in Indiana.

Results in all three studies were similar and declared 10-12% heating usage and electric savings. This would equate to around 15% of home cooling usage with a central air conditioning system.

Here are some other important findings from the Nest white paper:

  • The Oregon study noted that most participants (89%) felt satisfied with their Nest Learning Thermostat, and 66% of participants reported feeling more comfortable after the Nest Learning Thermostat was installed.
  • The Indiana study saved participants more than twice as much heating energy as a standard programmable thermostat. The report said that pre-existing differences in cooling use and occupancy between groups made it challenging to “draw any firm conclusions” about the differences in cooling usage savings.

Ultimately, using the Nest thermostat can save homeowners between $131 and $145 per year, meaning it would pay for itself in less than two years. In addition, common discounts and potential rebates can lead to a quicker return on investment (ROI).

Nest thermostats are generally helpful in saving money. According to an article from The Wired Shopper, savings will vary depending on the climate you’re in and your usage of the thermostat. 

With all of the energy-saving features, it’s pretty much guaranteed that users of Nest thermostats will see their energy bill decrease in less than a month.

Here is a pro tip to save even more money: use the Optiwatt app that allows you to schedule your EV charging during the emissions of power sources in your home electric grid. This way, you’ll not only save energy and the planet but also save your money on charging.

Other Energy-Saving Strategies

For example, combining smart thermostats and solar panels can create an efficient energy system for your home. However, states may charge sales taxes and use taxes for electricity sales.

For example, there are 48 different tax rates for electricity generated by residential solar energy systems in New York. Understanding how different utilities and energy systems impact your bill is important, especially if managing your budget is critical to you and your family.

If you charge an electric vehicle at home, your bill may be higher, especially if your state charges high tax rates. 

Similarly, if your utility company charges a high price (kWh in cents), you may spend more on electricity. As you can see, no one thing will determine your energy bill.

How to Set a Nest Thermostat for Optimal Energy Savings

Use common sense when setting your thermostat. Avoid keeping your air conditioning system blasting at full speed in the summer. In the winter, warm your home enough to keep yourself comfortable, but be mindful that keeping your thermostat at a higher temperature could cost more.

Additionally, you can follow these tips when using a Nest thermostat for optimal energy savings:

  • Use Eco Temperatures when no one is home
  • Read about the Nest Airwave feature
  • Check your Nest Leaf, which signifies energy savings
  • Make small daily changes, such as a one-degree change, to see how they impact your energy bill
  • Set your Nest to Off Mode when you’re on vacation
  • Review useful tips from the Google Home app or Nest app
  • Use your Energy History to build better habits

Many Nest users believe this type of smart thermostat is well worth the money and can help you save on energy bills if used correctly.

The Final Verdict

A Nest Thermostat can help you save money on your energy bills, but it all depends on your settings, the area where you live, and whether you follow its suggestions.

These Nest products are two of the best smart thermostats on the market, but significant energy savings are not guaranteed. It’s important that you understand a Nest thermostat can be a good investment, but how you manage it will also play a role in determining your energy savings.

Fuel your savings. Spend 70% or less with every charge!

Shannon Flynn
Shannon Flynn

Managing Editor, ReHack

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