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Smart thermostats can deliver cost-effective carbon reductions across the European housing stock

22nd Oct, 2021

Gemserv’s new report finds that smart thermostats are 10 times more cost effective per €100 spent at decarbonisation than the next best alternatives; solar PV, heat pumps and insulation.

Munich, 19 October 2021: With heating and cooling of homes accounting for 21% of the EU’s energy consumption, European housing stock urgently needs decarbonising in order to lower emissions 55% by 2030 and achieve net-zero1 according to a new report from Gemserv and tado°.

To realise these goals and reduce CO2 emissions, approximately €600 billion has been reserved in the EU’s Green Deal funds2. Decarbonisation is a huge challenge for governments across Europe, and any spending must be used as effectively and efficiently to not incur higher costs to the taxpayer.

A new report produced by research consultancy Gemserv looked at the four most common methods of decarbonising homes in Europe and found that compared to solar PV, heat pumps, and insulation, smart thermostats offered the most cost effective first step to decarbonisation based on the upfront cost and carbon saved.

On average a smart thermostat from tado° saves 22% of energy used in homes across Europe, based on data provided by over 1 million connected thermostats3. If all homes in Europe were equipped with smart thermostats, the total carbon emissions across Europe could fall by 4.75%, a sizeable contribution to the 55% goal by 2030.

According to tado°, the cost for implementing smart thermostats in all European homes would be approximately €40 billion, or 6.67% of the total cost allocated for the European Green Deal. To achieve the same 4.75% reduction in emissions through other infrastructure would be much more costly; the next best alternative heat pumps require ten times the investment at €432 billion, €2.25 trillion for insulation, solar PV being €2.81 trillion, sizeable portion of the EU’s investment funds.

The report also highlights that in order for the EU to achieve its targets for CO2 emissions these measures must work in tandem. Heat pumps, insulation and solar PV are all recognised methods of decarbonising for the future, and will each play an important role in achieving the net-zero goal of 2050. Heat pumps, solar PV, smart thermostats and insulation can all play a large role in decarbonising a single home together.

Read the Report

To read the report please visit

For more information on Smart Thermostats and their benefits visit


1 Source: Decarbonisation of Heat: Why it Needs Innovation, 18 March 2020
2 Based on the planned One third of the 1.8 trillion euro investments from the NextGenerationEU Recovery Plan, not including the EU’s seven-year budget which will also finance the European Green Deal. Source:
3 Average savings from over 1,000,000 connected thermostats, data provided by tado GmbH.