Economics of IoT Devices
Economics of IoT Devices
Why would a person want a smart thermostat in their home? First, it looks cool. Most thermostats fit in with the sleek, modern design aesthetics. Secondly, it is convenient to be able to “set it and forget it.” Most smart thermostats allow the user to set the thermostat to certain temperature ranges for various parts of the day. For example, if a person prefers colder temperatures when he or she sleeps, then he or she can set the thermostat to drop the temperature at 8:00 pm and then increase the temperature at 6:00 am will provide the most comfort during the user’s sleep. Thirdly, smart thermostats can save energy.
Related to the third reason, most people install a smart thermostat because it can save them money on their energy bill. But, you have to spend money to save money! A ‘dumb’ thermostat can be purchased for as little as $20-30. These thermostats also have digital sensors, LCD interfaces, and can have some extra features like temperature programming. So why would a person want to spend a few hundred dollars on a fancy smart thermostat?
Smart thermostats can often learn the user’s habits and adjust the temperature accordingly. If the user leaves the house all day (like goes to school or a job), the air conditioner may not need to keep the house at 72°F all day. The air conditioner can automatically raise the temperature to a slightly less comfortable 75°F and, before you normally return, cool the house back to 72°F. The few degrees of difference mean your AC runs a lot less!
Smart thermostats can even integrate information from outside sources. Some thermostats can monitor the weather forecast and adjust temperatures accordingly. Some companies bundle their thermostats with window or door sensors. If a door or window is left open too long, the AC may stop running until the door or window is shut again. This can lead to significant savings as well.
How much can a homeowner save? The numbers vary greatly based on use as well as the efficiency of the HVAC system in the home. But, according to some studies, a homeowner with a smart thermostat can save an average of 10% on heating costs and 15% on cooling costs. Together, this can translate to $100-200 in savings each year. Often, utility companies will offer a rebate program to homeowners who install a smart thermostat. All of these savings together often will pay for a smart thermostat in the first year and will continue to save money (and reduce the home’s carbon footprint) for many years!