Your Power Company Might Pay You to Upgrade to a Smart Thermostat

Upgrading to a smart thermostat can be a great financial move. It can make your energy use more efficient, cutting your energy bills year-round.

The downside? The cost. Smart thermostats aren't cheap. Base-model units start at around $70, but the price can easily jump to nearly $200 for a top-of-the-line name-brand smart thermostat.

You may not be out-of-pocket for the full cost, however. Your power company may actually offer you some pretty sweet deals on a new smart thermostat.

Power company rebates and discount codes

How your discount works will vary depending on the power company. You may need to shop through their portal, or you may be able to use a discount code and shop at another retailer.

For example, National Grid, Duke, and PG&E all offer thermostat shopping portals where you can shop models, choose a product, and sign up for any associated rebates during checkout.

Finding power company discounts

Not sure if your power company will pay for your upgrade? A simple internet search for the name of your power supplier plus "smart thermostat discount" should turn up any useful promotions.

You could also contact the company directly for a quick answer. Your online account and/or mobile app may even include a section on rebate or incentive programs.

Ongoing incentives for energy saving programs

The potential power company pay off doesn't end when you order your thermostat. Some energy companies also offer various smart energy programs to customers with connected thermostats.

Specifically, you can allow the power company to tweak your thermostat settings before and during high-demand energy events. For instance, the power company may pre-cool your house by a few degrees before a high-demand event, then increase your thermostat for a few hours during peak usage.

Most of these programs offer a modest bonus for signing up ($50 to $75 is typical), plus an annual rebate of $20 to $40 as long as you stay enrolled and active. You can opt out at any time, and you'll still have control over your thermostat if you want to change your settings yourself.

Other ways to save on a new thermostat

If your power company doesn't offer any good deals -- or if you want to save even more on top of those deals -- try these tips.

Use a rewards credit card

My rewards credit cards are how I save on pretty much anything I buy, especially since it'll stack with any other kind of discount you can find (provided you can, you know, pay with your credit card).

Choose your credit card based on where you're buying your thermostat so you can maximize your rewards. Or choose a 2% flat-rate cash back rewards card to ensure you're earning rewards no matter where you shop.

Shop a wholesale store

You won't get a huge array of options at Costco or Sam's Club, but what you do find will likely be going for a good price. In particular, if you're interested in extras, such as additional sensors, you can often get bundles from Costco with lots of accessories for the same price most retailers charge for just the unit.

Go refurbished

Provided you purchase from a reliable source, a professionally refurbished model can be a great deal. They're often quite a bit cheaper than new models, and good refurbished units should look and operate like new. Make sure your unit comes with a good warranty, just in case.

A smart upgrade

I'm usually one of the last people to jump on the "smart" product bandwagon. But I have to admit, I'm sold on our smart thermostat. Not only has it had a positive effect on our power bill, but being able to adjust the thermostat from the car is a definite quality-of-life improvement.

Are smart thermostats for everyone? No, probably not. If you already make good use of a programmable thermostat, you may not see as much of a boost from upgrading to a smart unit.

But if you're already thinking of upgrading, definitely check out your power company's offerings first. Doing so could save you a ton of money.