Smart Thermostat Energy Savings: What the Research Actually Shows

The Real Numbers Behind Smart Thermostat Savings

Property managers hear a lot of claims about energy savings. Some sound too good to be true. Others are vague enough to be meaningless. So what do the actual studies show about smart thermostat energy savings — especially for multifamily apartment buildings in hot climates like Texas?

We dug into the research from ENERGY STAR, the U.S. Department of Energy, independent academic studies, and real-world multifamily deployment data. Here is what the numbers actually say.

What ENERGY STAR Reports

ENERGY STAR, the EPA-backed certification program, requires smart thermostats to demonstrate measurable energy savings to earn their label. According to ENERGY STAR's testing and field data:

• ENERGY STAR certified smart thermostats save an average of 8% on heating and cooling costs compared to a standard programmable thermostat
• For a typical household, that translates to roughly $50 per year in utility savings
• The savings come primarily from automated scheduling, occupancy detection, and learning algorithms that reduce HVAC runtime without sacrificing comfort

These numbers are conservative because ENERGY STAR uses verified, peer-reviewed testing methodologies. The actual savings in many deployments exceed these benchmarks.

What the Department of Energy Says

The U.S. Department of Energy (DOE) has studied thermostat-based energy savings extensively. Their findings are more aggressive than ENERGY STAR's baseline:

• Adjusting your thermostat by 7-10 degrees for 8 hours a day can save 10% per year on heating and cooling
• Smart thermostats automate these setbacks, which is why they consistently outperform manual programmable thermostats — most people never program them correctly
• The DOE estimates that heating and cooling account for roughly 48% of energy use in a typical American home, making HVAC the single largest energy expense

In multifamily settings, the DOE notes that shared walls and centralized systems can slightly reduce per-unit savings. But the aggregate savings across an entire property are substantial.

Independent Research and Field Studies

Beyond the federal agencies, several independent studies have measured smart thermostat performance in real-world conditions:

Major Smart Thermostat Manufacturer Field Study (2015)

One of the largest field studies, conducted by a leading smart thermostat manufacturer, tracked energy usage across hundreds of homes over multiple heating and cooling seasons:

• Average heating savings: 10-12%
• Average cooling savings: 15%
• The study found that savings were higher in cooling-dominant climates — relevant for Texas, where air conditioning drives the majority of energy costs

Pecan Street Research Institute (Texas-Specific)

The Austin-based Pecan Street Research Institute has conducted extensive energy research in Texas homes:

• Smart thermostats showed 12-20% HVAC energy reduction in Texas homes during summer months
• Savings were even more pronounced during extreme heat events, when smart thermostats prevented unnecessary overcooling
• Properties with older HVAC systems saw larger percentage savings because the thermostats reduced runtime on less efficient equipment

ACEEE Multifamily Study

The American Council for an Energy-Efficient Economy (ACEEE) has specifically studied energy efficiency in multifamily buildings:

• Smart thermostats in multifamily settings delivered 8-15% HVAC savings per unit
• The lower end of the range reflects properties where tenants do not pay their own utilities (and therefore have less incentive to conserve)
• Properties where tenants pay their own electric bills saw savings closer to the 15% end

The Multifamily Advantage: Vacant Unit Savings

Here is where the math gets really compelling for property managers. One of the most underappreciated benefits of smart thermostats in multifamily buildings is vacant unit management.

In a traditional apartment complex, vacant units still run their HVAC systems to prevent damage and maintain the building. Without smart thermostats, these units often run at the same temperature setpoints as occupied units — wasting energy on empty space.

Smart thermostats with remote management capabilities allow property managers to:

• Set vacant units to energy-saving mode (wider temperature ranges that protect the unit without full climate control)
• Monitor temperatures remotely to prevent pipe freezing or excessive heat
• Adjust settings instantly when a unit is leased and the new tenant is moving in

The result? Vacant unit energy costs can be reduced by 40-50% with smart thermostat management. For a property with 5-10% vacancy at any given time, this adds up fast.

Learn more about the full energy savings potential for your specific property.

Breaking Down Savings by Climate Zone

Texas spans multiple climate zones, and your location significantly impacts potential savings:

Hot-Humid (Houston, Corpus Christi, Brownsville, McAllen)

• Cooling dominates energy costs (70-80% of HVAC spend)
• Smart thermostat cooling savings: 12-18%
• Highest absolute dollar savings due to extreme summer cooling loads
• Humidity management features provide additional comfort and efficiency benefits

Hot-Dry (Midland-Odessa, San Angelo, Abilene)

• Cooling is the primary expense, but heating costs are more significant than coastal areas
• Smart thermostat combined savings: 10-16%
• Temperature swings between day and night make automated scheduling especially effective

Mixed-Humid (Dallas-Fort Worth, Waco, Tyler)

• Significant both heating and cooling seasons
• Smart thermostat combined savings: 10-15%
• The largest savings come from transition seasons (spring and fall) when smart thermostats prevent systems from running when outdoor conditions are comfortable

What This Means for a 100-Unit Property

Let us put real numbers on this. For a hypothetical 100-unit apartment complex in the Dallas-Fort Worth area:

• Average annual HVAC cost per unit: $1,200-$1,800 (depending on efficiency and unit size)
• Conservative smart thermostat savings (10%): $120-$180 per unit per year
• Property-wide annual savings: $12,000-$18,000
• Add vacant unit savings (assuming 7% vacancy): $2,400-$4,500 additional
• Total estimated annual savings: $14,400-$22,500

And remember — when these thermostats are installed through a utility energy efficiency program at zero cost, the return on investment is effectively infinite. There is no capital expenditure to recoup.

Calculate the specific savings for your property using our ROI calculator.

Why the Savings Are Consistent

Some property managers worry that tenants will override the smart thermostat settings and eliminate the savings. The research actually addresses this concern:

• Even when tenants have full control, smart thermostats still save energy because of automated features like occupancy detection and schedule optimization
• Most tenants appreciate the convenience and actually let the smart features run rather than manually overriding them
• The biggest savings driver is not restricting tenants — it is eliminating waste during unoccupied hours (when tenants are at work, sleeping, or away)

The Bottom Line

The research is clear: smart thermostats deliver measurable, consistent energy savings in the range of 8-18% on HVAC costs, with additional savings from vacant unit management. These are not theoretical projections — they are based on years of field data from millions of installed devices.

For Texas multifamily properties, where cooling costs dominate energy budgets and summer temperatures regularly exceed 100 degrees, the savings potential is on the higher end of those ranges.

The best part? Through utility energy efficiency programs, you can get these savings-generating devices installed at absolutely zero cost to your property. Spots are limited each program year, so the sooner you apply, the better your chances.

Ready to see what your property could save? Start with a free eligibility check or explore our energy savings data for more details.