Smart thermostat rebates and free thermostat offers from utilities

Where to look, in order

1. Your utility’s website. Search the electric company, and the gas company if you heat with gas, for “smart thermostat”, “rebates” or “energy efficiency”. If one company supplies both, check both fuels. Water heating and appliance rebates are listed on the same page.
2. ENERGY STAR Rebate Finder. Enter your ZIP code to find rebates and special offers near you on ENERGY STAR certified products. ENERGY STAR says its partners sponsor rebates on certified products, and that certified smart thermostats are designed to be compatible with the programs some local utilities offer.
3. Your state energy office or public utility commission. They often list statewide programs and income-qualified offers that the utility page buries.
4. Your city, county or electric cooperative. Municipal utilities and co-ops run their own programs, often with smaller lists of eligible models.
5. The thermostat maker’s site or retailer. Some post a utility-offers lookup. Treat it as a pointer and confirm on the utility’s own page, because lists change.

Types of offers

Demand response: what you are agreeing to

In a thermostat demand response program, the utility adjusts enrolled thermostats briefly on days when electricity demand and prices are high. You trade a few degrees of comfort for a rebate or credit. Terms differ by utility, so read yours. As one example, Seattle City Light’s pilot FAQ describes adjusting thermostats by up to 3°F, for events of a maximum of three hours, up to 15 times per season on non-holiday weekdays. Customers can opt out of an event by changing the thermostat back to their original setting, and the utility says it will never override that choice. Participants receive up to $50 for enrolling and up to $40 a year for taking part. That is one utility’s pilot, not a national standard.

Questions to ask before you enroll:

• How many degrees, for how many hours, how many times a season?
• Can I opt out of an event, and does that reduce my credit?
• Does it also apply in winter, or only summer?
• Who owns the thermostat if I leave the program or move?
• What data does the utility or its vendor collect, and how long do they keep it? Whatever you choose, follow the FTC’s basics for connected devices: change default passwords, use two-factor authentication when offered and install firmware updates.
• Is the thermostat compatible with my heat pump, or only with standard systems? See smart thermostats for heat pumps.

Eligibility traps

• The model must be on the list. Rebates usually cover specific models, often ENERGY STAR certified ones. Check the exact model number, not just the brand.
• The system must be eligible. Some programs require central air conditioning, a Wi-Fi network or an electric heat pump; others exclude baseboard heat.
• Renters. Programs often accept renters with the landlord’s permission, and some provide a free thermostat only to the account holder. See thermostat limits for landlords.
• Combination offers. Utility and state offers sometimes stack and sometimes do not. Ask.
• Installation. A rebate may require a professional installer. A C-wire fix can add to the cost; see smart thermostat without a C-wire.

Tax credits: check current rules

Federal and state tax credits for home energy products have changed more than once, and a credit that exists for one equipment type may not apply to a thermostat. This guide gives no amounts. Before you count on a credit, read the current rules on the official ENERGY STAR and IRS pages, or ask a tax professional.

Does the rebate change the math?

Often it does. ENERGY STAR reports that homes with certified smart thermostats save on average 8% on heating and cooling costs, about $50 a year. At that rate a $50–$100 rebate shortens the payback by one to two years. Enter the rebate into the smart thermostat savings calculator to see your own range.