Which Saves You More Money: Smart Thermostat Or Smart Space Heater?

Energy is not cheap these days, and space heating makes up nearly half (43%) of the energy the average home uses, according to the U.S. Energy Information Administration. Whether you're heating your home through oil, natural gas, or electric heat pumps, utility bills can soar in the winter. "Smart" heating equipment can reduce your energy costs at home by using Wi-Fi connectivity and artificial intelligence to heat only the areas you want to heat and only when you need it. But is your energy budget better spent investing in a smart space heater or a smart thermostat? It depends on your needs, but in almost all cases, a smart thermostat is likely to save you more money in the long run than a smart space heater will.

The price difference between smart space heaters and smart thermostats is minimal, with different models of each costing between $50 and $250. Getting a professional to install a smart thermostat, however, can run up the bill significantly, although many models allow you to install them yourself. So the real question is how much return you get for your investment. If you live in a temperate climate where a central heating system like a furnace is unnecessary, a smart space heater may be all you need. Likewise, if you only have a small space you want to heat and your thermostat can't control the temperature of different zones, a smart space heater might be a wiser investment than a smart thermostat. But there are many more reasons why a smart thermostat can save you more money.

While smart space heaters might cost less to purchase, they can be more expensive to run. They either use electric resistance heating (the most expensive heat source) or infrared technology, which can be fueled by electricity, propane, or natural gas, which can also be costly. Trying to heat a whole home with space heaters, no matter how smart, is almost always more expensive than central heating of any sort. Install a highly efficient heat pump, and the cost savings for using a smart thermostat are even greater. Even if you only want to heat a small area with a smart space heater, you have to remember to turn the heat down whenever you don't want it. A smart thermostat does that for you, likely saving you money.

A smart thermostat increases your energy efficiency by determining the best times of day to heat your whole home and, in homes with multi-zone heating systems, by separately controlling the temperature in different areas. And while a smart space heater only heats, a smart thermostat can also control your air conditioning unit in the summer, saving you money year-round. According to Energy Star, year-round use of a smart thermostat can save families with high heating and cooling costs up to $100 a year, meaning a smart thermostat can pay for itself in as few as two or three years (depending on the brand and installation costs). You'll save money using a smart space heater if you only want to heat a small space or only need to heat a few times a year. Otherwise, a smart thermostat is a wiser investment of your precious energy dollars.