What Can Smart Thermostats Really Do For Your Home (and Portfolio)?

Smart Thermostats

1. Who are the players?

2. How big is the opportunity?

3. What’s the value to you?

Smart Thermostats

1. Who are the players?

2. How big is the opportunity?

3. What’s the value to you?

Smart Thermostat Leaders

Others to Watch...

Something to Ponder

Will smart thermostats represent meaningful revenue for companies as

diverse as Honeywell and Google?

Smart Thermostats

1. Who are the players?

2. How big is the opportunity?

3. What’s the value to you?

Central Thermostat Presence

Low penetration equates to a big opportunity…

U.S. Household Breakdown (Heating)Central Thermostat Type Estimated # U.S.

HouseholdsNo equipment 3.97 millionNo central equipment 6.62 millionNo central thermostat 9.27 millionNon-programmable central thermostat

63.6 million

Programmable central thermostat 48.0 millionSmart central thermostat <0.9 millionTotal Households 132.4 million

In other words…

Market Opportunity

BUT….

Up to 15% of households may not require a central thermostat for heating and/or cooling.

Don’t Forget About Climate

Mild summers and winters reduce need for cooling and heating in certain geographies.

So it’s more like this…

Market Opportunity

Smart Thermostats

1. Who are the players?

2. How big is the opportunity?

3. What’s the value to you?

Energy Savings Breakdown

Department of Energy:

“You could save as much as 1% on your energy bill for each degree if the setback period is eight hours

long. The percentage of savings from setback is greater for buildings in milder climates than for

those in more severe climates.”

In other words…

Energy Savings Breakdown

Up to $180 every year

Simply program your thermostat lower in the winter and higher in the summer

for 10 hours each day.

Cost of Selected Thermostats

$249 $249

$244$299

Estimated Payback Period

1.4 yrs 1.4 yrs

1.4 yrs1.7 yrs

Foolish Bottom Line

• Few serious players, competition will emerge• Features, design will be key (think smartphones)• Size of opportunity will support multiple players• Programmable thermostats can save up to $180

per year• Can smart thermostats save even more?• Best-case payback period under 18 months

SFR