Now for something completely different! This week, we’re opening our blog doors to a guest – Jordan Lavin from RateHub.ca, Canada’s leading financial product comparison website. He’s here to talk about the impact smart thermostats can have on the affordability of your Mortgage.
Smart home thermostats are some of the most fascinating and practical uses of artificial intelligence. The best smart thermostats allow you to control your home from anywhere, learn from your behaviour, and integrate with AI assistants like Apple HomeKit, Amazon Alexa, and Google Home.
Even more importantly, however, smart home thermostats can help you reduce your carbon footprint by reducing energy use. This also translates to cost savings that can really add up.
According to Natural Resources Canada, switching from a manual thermostat to a smart thermostat can save at least 8% of the energy you use to heat and cool your home. Other estimates are higher, ranging from 13% to as high as approximately 30%. We’ll use 13% in our calculations. If it costs an average of $150 per month to heat or cool your home with a manual thermostat and a natural gas furnace, that’s at least $19.50 per month in savings or $234 per year you could be saving.
If you have a heating source like electric baseboard heaters, the savings could be even more significant. In fact, it could cost more than $1,100 per month in electricity to match the output of a 50,000 BTU furnace on the coldest days of the year, based on current Toronto Hydro rates. Even if you spread out the cost of winter heating over the entire year, it could cost an average of $500 per month to heat an 8-room home with baseboards. A smart home thermostat could reduce that cost by $65 per month.
Whichever heating source you use, a 13% savings is like getting an entire month and a half of free heating or cooling every year just by upgrading your thermostat.