New Report from Gemserv Finds Smart Thermostats 10x More Cost-Effective at Lowering Heating Bills than Other Encouraged Methods

Smart Thermostats are shown to lower heating bills by 22% leading to £164 savings in a typical semi-detached home1. This provides the highest return on  investment compared to Heat Pumps, Solar PV and Insulation. 

Munich, 19 October 2021: In a world of rapidly rising wholesale energy prices, a new report from  Gemserv, reveals how Smart Thermostats provide the highest carbon-saving and cost-saving potential  per Euro spent. The report considers Smart Thermostats against other methods of decarbonising  homes such as fitting solar panels, installing heat pumps, or adding insulation, reducing bills by £164 per year. 

The report, peer-reviewed by Dr. Tim Forman, Senior Research Associate at the University of  Cambridge, looks at different archetypes of housing stock across Europe and the most common  measures of reducing carbon emissions; paying particular attention to the cost of product and  installation, the carbon saved, and the returned cost to consumers saved annually on energy bills. 

Across all housing archetypes and methods of reducing carbon emissions, smart thermostats were the  most cost effective at saving both money and energy. Based on a typical 3 bedroom semi-detached  home’s heating bill of £7442 per year, households save on average £163.68 per year with a smart  thermostat. Savings can be even higher if consumer energy prices continue to increase as we see in  the current market. 

Measures such as installing heat pumps, solar panels or fitting insulation can cost 10x more than a  smart thermostat. The most cost-effective step towards protection from these price increases is to  invest in a smart thermostat and reduce energy consumption. When considering how to invest in  reducing a home’s energy bill, the below graph demonstrates the effective savings on fuel bills per  £100 invested:

Survey Results

Even if smart thermostats are the most cost-effective, the report indicates that insulation, solar panels  and heat pumps are all important methods of saving energy and making homes greener. In order to  achieve higher savings and net-zero targets by 2050, all these measures will need to be used in tandem.

comparison heat saving methods

“Low carbon heating, renewable electricity generation, and insulation upgrades will all play a key role  in household decarbonisation. However, this report demonstrates that smart thermostats offer  consistent financial returns, whilst saving carbon – unique amongst the four technologies we have  analysed” says Christopher Lewis, Economic Analyst at Gemserv 

Christian Deilmann, Co-Founder and CPO of tado° says “Not only do smart thermostats offer the most  compelling way to save money and energy usage, their entry cost and installation effort is the lowest.  This marks a significant way for homes to lower their carbon consumption and energy bills.” 

“In a time of rising energy costs across Europe, lowering your energy consumption is the best option  for consumers to lower their bills, something which smart thermostats excel at. Installing a smart  thermostat is something that people can do at home, without an engineer within less than an hour, at  a low cost”, Deilmann continued. 

To read the report please visit For more information on Smart  Thermostats and their benefits visit

About Gemserv

Gemserv is an expert provider of professional services in a world driven by data and technology. It is  a purpose-driven company, working across multiple sectors, including energy, the public sector and  health to tackle today's social and environmental challenges. The business provides consultancy and  outsourcing capabilities to make markets work better, to help organisations harness the power of digital  transformation and to ensure people's data is better protected and used ethically. 

About Dr. Tim Forman 

Dr. Tim Forman (BA MSc PhD) is a Senior Research Associate at the Cambridge Institute for  Sustainability Leadership, University of Cambridge. Dr Forman’s research, teaching and professional  background relates to the design, construction and renovation of buildings and to improving  sustainability and resilience in the built environment under current and future climate conditions. 

About tado° 

tado° is the European leader in intelligent home climate management. As the only cross-manufacturer  platform, tado° Smart Thermostats and services connect with any kind of heating or cooling system.  Customers benefit from energy-saving technology such as Geofencing and Open Window Detection,  as well as from remote heating diagnostics. Founded in Munich, 2011, and with 180 employees, tado°  reshapes the way energy is consumed for more comfort, savings, and wellbeing at home.

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1 Based on 22% reduction of average fuel bill for a typical 3 bedroom semi-detached house in UK, pre 1980. Sourced here: comparison 

2 Based on average fuel bill sourced here: guides/heating-cost-comparison