Smart Thermostats: Why They’re An Eco-Conscious Money Saver for Canadian Homeowners

October 29, 2025

smart thermostat is more than a convenience; it’s the control centre for your home’s biggest energy loads. In a typical Canadian house, space heating and cooling account for about two-thirds of total energy use, so smarter control directly shrinks bills and emissions. 


This guide explains how smart thermostats work, where savings come from (obvious and hidden), key compatibility checks for Ontario homes, and how to choose with confidence. 



From Dial To Digital: How Thermostats Evolved 

Early bimetal dials simply turned systems on and off. Programmable units added time-based setbacks, letting Canadians automate lower temperatures overnight or when away. 


Now, smart thermostats build on that idea with learning schedules, occupancy sensing, remote control, and energy reports. These features are also standardized under Canada’s ENERGY STAR program


With smart thermostats, control isn’t limited to the hub on your wall. You can access it via smartphones and device apps, wherever you are, as long as you have internet. 


Why An Eco-Friendly Control Centre Matters (Not Just Appliances) 

Because heating uses ~63% of the average home’s energy and cooling adds a bit more, precise setpoints and schedules have an outsized impact. An ENERGY STAR-certified smart thermostat adjusts to energy-saving temperatures when you’re asleep or away, and Natural Resources Canada (NRCan) notes that typical users can save around 8% on heating/cooling costs with smart control used properly. 


When you pair that with energy-efficient upgrades such as a new furnace (or even better, a heat pump), savings add up! 


3 Obvious Ways A Smart Thermostat Saves Energy 

  • Automated scheduling & learning: Builds routines that avoid heating or cooling an empty home. 
  • Remote access: Change setpoints from your phone if plans change. 
  • Actionable feedback: ENERGY STAR models provide usage data so you can spot waste and fine-tune settings. 


With kilowatt hours saved, that translates to more money in your bank. 


The Less-Obvious (But Powerful) Savings 

  • Demand response participation: Ontario’s Peak Perks uses brief, opt-out thermostat adjustments on the hottest weekdays to lower provincial peak demand, improving grid reliability and cutting peak-time emissions intensity. More than 200,000 residents enrolled by January 2025. 
  • System-friendly operation: Features like gradual temperature recovery and adaptive algorithms can reduce short-cycling and overshoots that waste energy, especially with variable-speed equipment. 


Where A Smart Thermostat Helps Most 

  • Furnace/AC systems: Easy wins from learned schedules and setbacks; look for ENERGY STAR certification. 
  • Air-source heat pumps: Pairing with a compatible smart thermostat maintains comfort and elevates efficiency; NRCan explicitly recommends smart control alongside heat pumps. 
  • Electric baseboard or in-floor electric heat: You need a line-voltage smart thermostat (120/240V). Standard low-voltage (24V) models, like many popular Wi-Fi thermostats, are not compatible. Provinces, including Ontario, have performance standards (CSA C828) for line-voltage thermostats, and NRCan is considering federal regulation
  • Hydronic/radiant systems: Because boilers and radiant systems respond slowly, setback depth and timing should be conservative. Smart controls allow fine-tuned, gradual changes. 


Real-World-Based Canadian Setpoints 

For the winter, Statistics Canada and ClimateCare guidance align with keeping 20–22 °C while home and awake, and 16–18 °C when asleep or away. These are settings a smart thermostat can automate consistently. 

During the summer, add about 3-4 degrees to that guideline. 



Features That Signal Eco-Performance 

There are countless models of “smart” thermostats out there. Some, on Amazon and other sites, might look like they comply with Canadian standards, but often don’t when the price seems too good to be true. 

That’s why you should look for: 

  • ENERGY STAR Certified: Ensures baseline capabilities like learning, occupancy features, and energy reporting verified for Canada. 
  • Occupancy/room sensors: Avoid over-conditioning unoccupied spaces; remote sensors improve comfort with fewer runtime hours. 
  • Demand-response ready: Eligible for offers and programs such as Ontario’s Peak Perks (check the model list). 
  • Integration with heat pumps: Look for controls that manage auxiliary/backup heat intelligently to prevent expensive electric strip heat from taking over. 


Compatibility And Installation Checks 

Not all smart thermostats are compatible with all systems. These considerations should be taken into account when purchasing: 

  • System voltage: Confirm 24V low-voltage (common for furnace/AC/heat pump) versus line-voltage (baseboard, electric radiant). Choose the right class of thermostat. 
  • C-wire power: Many smart models need a common wire—professional installation can add one or use approved adapters. Link ClimateCare can assess wiring and configure advanced features for your equipment. 
  • Eligibility for programs & incentives: Ontario’s evolving efficiency programs periodically support smart thermostats and demand-response enrollment; always verify current eligibility. 


Privacy And Data Concerns from A Canadian Lens 

Smart thermostats process occupancy patterns, schedules and sometimes location data. Canada’s Office of the Privacy Commissioner (OPC) advises consumers to review what information is collected, how it’s shared, and whether you can delete it. 

To operate in Canada, manufacturers must follow PIPEDA and best-practice safeguards. Use strong passwords, enable updates, and review app permissions annually at least. 


Ready to Switch? Here’s a Buyer’s Checklist 

  1. Confirm system type: Low-voltage vs line-voltage; heat pump vs furnace. 
  2. Choose ENERGY STAR certified models for proven features and performance. 
  3. Check demand-response eligibility (Peak Perks in Ontario) and enroll if available. 
  4. Plan your schedule: Aim for 20–22 °C occupied and 16–18 °C asleep/away, then fine-tune in the winter. 3-4 degrees higher for summer. 
  5. Review privacy settings and firmware update policies. 
  6. Consider home data tools: Ontario supports Green Button apps to visualize and manage use alongside your thermostat. 


Our Frequently Asked Questions About Smart Thermostats 

Do smart thermostats actually lower emissions in Ontario?

Yes. Cutting heating/cooling runtime reduces household energy use directly. Enrolling in Peak Perks also trims provincial peak demand, which supports reliability and reduces the need for peak-hour gas generation. 


What if I have baseboard heat?

Choose a line-voltage smart thermostat designed for 120/240V heaters. A conventional low-voltage smart thermostat will not work safely or correctly. 


Can smart thermostats work with heat pumps?

Yes, and usually very well. Canadian regulators even encourage this pairing. Select a model with heat-pump-specific settings to control auxiliary heat efficiently. 


Switch to a Smart Thermostat with Link ClimateCare Today 

A smart thermostat gives you measurable, low-effort reductions in both energy use and emissions right at the control centre of the loads that matter most in Canada. Choose an ENERGY STAR model, confirm compatibility (especially for baseboard homes), enroll in demand response where available, and set sensible schedules. 


For selection, wiring and setup done right, Link ClimateCare can install and configure a smart thermostat to deliver comfort and eco-conscious savings in every season. Book online with us today for services in Lindsay, Beaverton and beyond!