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Smart thermostats and smart-home energy savings

Cooling dominates a Texas bill. Here's how to cut it with the right thermostat, settings and a few upgrades that pay off.

Updated October 2026. By the YEnergy editors.

Disclosure: YEnergy is an independent guide. Some links on this page are affiliate links, which means we may earn a commission if you sign up or buy, at no extra cost to you. How we make money.

Why cooling is the Texas priority

In most Texas homes, air conditioning is the largest use of electricity from late spring through early fall. That's good news for savers: small improvements in how, when and how efficiently you cool can reduce your bill without changing how you live. A smart thermostat is an inexpensive first step, but it works best alongside the basics: shading, sealed ducts and good attic insulation.

Choosing a smart thermostat

Popular options include models from ecobee, Google Nest and Honeywell Home (Resideo). Rather than chase the newest model, compare these features:

FeatureWhy it matters in Texas
Compatibility with your systemHeat pumps, two-stage systems and C-wire requirements vary. Run the compatibility checker first.
Remote room sensorsHelpful in two-story or sun-exposed homes where the hall thermostat doesn't match bedrooms.
Humidity controlHumidity drives comfort on the Gulf Coast and in East Texas.
Geofencing and schedulesAutomatically relax the setting when no one is home.
Energy reportsShow run times so you can spot an air conditioner that's struggling.
Utility or retail provider programsSome Texas providers and utilities offer thermostat enrollment or demand-response programs. Availability changes, so ask yours.
Voice and smart-home supportCheck Alexa, Google Home or Apple Home support if you use them.

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Settings that actually save money

  • Set 78°F when home and awake if you can tolerate it (the DOE's suggestion), then adjust a degree or two for comfort.
  • Raise the setting 7–10°F when you're away for eight hours or more. The DOE says doing this can trim about 10% a year from heating and cooling costs.
  • Avoid big swings that make the system run flat out, especially on a very hot afternoon. Many people do better with a moderate setback and a gentle recovery.
  • Use ceiling fans and turn them off when you leave the room. Fans cool people, not rooms.
  • Pre-cool during cheap hours if you're on a time-of-use plan, as described in our electricity plan guide.
  • Change the air filter on schedule so the system moves air efficiently.

Upgrades that often beat gadgets

Before you spend on more gadgets, check the building envelope:

  • Attic insulation. The DOE recommends roughly R-30 to R-60 in most of Texas, depending on your climate zone and what you have now.
  • Duct sealing. Leaky ducts in a hot attic can waste a large share of the cooling you pay for.
  • Air sealing and weatherstripping around doors, windows and attic hatches.
  • Shading and window treatments. Solar screens, reflective film and awnings on west-facing windows cut heat gain.
  • A high-efficiency AC when your system needs replacing; size it properly with a load calculation, not a rule of thumb.

Smart-home extras worth considering

  • Whole-home energy monitor. A panel-level monitor shows which circuits use the most power. (link coming soon).
  • Smart plugs. Cheap timers for window units, dehumidifiers and other loads. Don't put space heaters or large appliances on them. (link coming soon).
  • LED bulbs. Inexpensive, and they add less heat to the house than older bulbs.
  • Water heater timer or heat-pump water heater. Larger up-front cost, but strong savings in the right situation.
  • Pool pump scheduling. Running a pump during cheaper hours on a time-of-use plan can help; variable-speed pumps save even more.

Pair savings with the right plan. Efficiency lowers how much you use; the right retail plan lowers what you pay for each kWh. Do both. Start with our electricity plan guide.

Installing a thermostat

  1. Switch off the HVAC system at the breaker.
  2. Photograph the old wiring and label each wire.
  3. Remove the old thermostat and mount the new base.
  4. Connect the wires per the manual, including a C-wire or power adapter if required.
  5. Restore power, then complete the app setup and set a schedule.
  6. Watch it for a week and fine-tune.

If you see high-voltage wiring or aren't comfortable, hire a qualified HVAC technician.

Frequently asked questions

How much can a smart thermostat save?

Savings vary by home and habits. ENERGY STAR has estimated average savings of about 8% on heating and cooling bills for certified smart thermostats, though your results may be higher or lower. Savings come from setting back the temperature when you're away or asleep, which a programmable or smart thermostat does automatically.

What temperature should I set in a Texas summer?

The U.S. Department of Energy suggests about 78°F when you're home and awake, and a higher setting when you're away. Raising the setting 7 to 10°F for eight hours a day can cut annual heating and cooling costs by up to about 10%. In humid areas like Houston, humidity control matters too.

Will a smart thermostat work with my system?

Most work with standard heating and cooling systems, but some need a C-wire (common wire) or an included power adapter, and line-voltage systems such as electric baseboard heaters need special models. Use the manufacturer's compatibility checker before buying, or ask an HVAC professional.

Do smart thermostats work with time-of-use electricity plans?

Yes, they are a good pairing. You can pre-cool your home during cheap hours and relax the setting during expensive ones, if your plan has different rates by time of day.

Can I install a thermostat myself?

Many homeowners do, but turn off power to the HVAC system at the breaker first, photograph and label wires before removing the old thermostat and follow the manual. If you have high-voltage wiring or aren't comfortable, hire an HVAC technician.

Is a smart thermostat better than a programmable one?

Smart thermostats add learning, geofencing, remote sensors, energy reports and phone control. If you already follow a consistent schedule, a basic programmable model can save nearly as much, so choose by features you'll actually use.

Estimates are general and results vary. Product features and utility programs change; check current details with the manufacturer and your provider.