How the Nest Learning Thermostat Functions

Brrrr, why is it so chilly in here? Did someone tamper with the thermostat? Temperature settings have long been a point of contention among housemates, but you likely don't think twice about your thermostat until you start feeling uncomfortable.

Your home's HVAC (Heating, Ventilation, and Air Conditioning) system, including heating, air conditioning, and the ducts that circulate air between rooms, plays a huge role in your energy use. According to data from the U.S. Department of Energy, this system typically makes up about half of your household’s energy consumption [source: DOE]. For those relying on electric heating and cooling, this translates to nearly half of your electricity bill.

You manage your home's HVAC system via the thermostat. Simply choose your desired heating or cooling settings and set your ideal indoor temperature. The thermostat takes care of the rest, automatically adjusting your systems based on the temperature it detects.

The Nest Learning Thermostat goes beyond simple temperature monitoring to significantly impact your HVAC energy usage. In this article, we’ll explore what the Nest can do, how it works, who’s behind it, and the challenges it faces within the HVAC industry.

To appreciate the value of Nest, let's first take a look at what other thermostats offer. All thermostats allow you to set a desired temperature and track the current one. You can also toggle between heating and cooling modes.

Many thermostats rely completely on your manual adjustments. However, in recent years, manufacturers have introduced programmable thermostats that can help you save energy. These devices let you set different temperatures for different times, such as lowering the temperature when you’re away from home. Unfortunately, due to the complexity of programming these thermostats, many people make errors, which can diminish their energy-saving benefits.

The Nest Learning Thermostat aims to fix this issue by programming itself. It learns your temperature preferences and behaviors for different days and times, then creates a customized HVAC schedule. While it's not the only smart thermostat out there, Nest became the most recognized after Google acquired Nest Labs for a reported $3.2 billion in January 2014.

So, who’s behind Nest? Would you believe it’s the same visionary who created the iPod and iPhone? Before diving into the technical aspects, let’s first explore the origins of Nest.

The Journey of the Father of the iPod into the World of Thermostats

Before 2008, Tony Fadell was already a household name at Apple. Known as the creator of the iPod, he led the team that designed the first 18 generations of the iPod and the first three generations of the iPhone.

After retiring in 2008, Fadell, who holds over 100 patents, turned his attention to building a new home in Lake Tahoe. During this time, he came up with a groundbreaking idea to enhance the thermostat. He pitched the idea to his former colleague Matt Rogers, who had worked on iPod software. Rogers saw the potential and joined Fadell in bringing the concept to life [source: SmartPlanet].

There was just one issue: Fadell and Rogers knew nothing about the HVAC industry.

The duo consulted HVAC professionals from different climates across the U.S. While initially skeptical, these experts were curious enough to lend their expertise. Their feedback gave Fadell and Rogers a much clearer understanding of how and why people use their thermostats [sources: SmartPlanet, Fadell].

With a wealth of new information, Fadell and Rogers set out to completely redesign the thermostat. The result was the Nest Learning Thermostat, the flagship product of their startup, Nest Labs. True to their Apple roots, the thermostat features a sleek design and the ability to connect across multiple devices.

Now, let’s take a closer look at the features that have made this thermostat a favorite in both the media and with consumers.

Discover Nest Features: A New Design

The Nest Learning Thermostat combines cutting-edge energy-saving technology with a modern design. Before we dive into its energy-saving abilities, let’s explore the design features that make it a stylish gadget worth showcasing to your friends.

The second-generation Nest, released in October 2012, is about 20% thinner than its predecessor. The combined device and base measure 3.27 inches (83 millimeters) in diameter and 1.26 inches (32 millimeters) in height.

While the overall shape and functionality remain similar, the updated model has some design upgrades. The grill that once housed the sensors has been replaced with a smooth, opaque black plastic cover that blends seamlessly with the rest of the device. The entire outer ring now rotates as a single piece, unlike the previous version where the front portion of the ring was adjustable. Additionally, the internal connectors have been rearranged in a circular layout to accommodate two extra connection points.

Discover Nest Features: Energy Efficiency

Here are the key Nest features designed to appeal to energy-conscious consumers:

As mentioned earlier, Nest provides tech-savvy users the option to manually program their thermostat. However, Nest was designed with simplicity in mind, catering to those who prefer adjusting the dial as needed. For the majority of users, Nest’s VP of Technology, Yoky Matsuoka, shares these tips on teaching your Nest to save energy.

Let’s now take a closer look at the Nest Sense technology.

Nest Technology: Nest Sense

We’ve covered the key features of the Nest Learning Thermostat, but what’s really powering that sleek black screen? The technology behind Nest is a combination of sensors, hardware, and algorithms, all packaged under the term Nest Sense. Let’s dive into how Nest Sense operates.

One of the main roles of Nest Sense is to gather data that it uses in its calculations. This data collection goes far beyond just reading the room temperature. Here’s a look at the different sources Nest pulls data from:

By analyzing the data from these sources, Nest Sense generates a schedule to manage your HVAC system. This schedule includes:

You can view your Nest thermostat’s schedule through the device’s interface or by logging into your Nest account online. If you need to make any adjustments manually, you’re free to do so. Manual modifications come in handy if you’re planning to be away from home for several days or if you’ll be at home when you would normally be out for work or school.

Software updates and bug fixes are regularly released, many of which introduce new features. The 3.0 software version, launched alongside the second-gen Nest thermostat, introduced algorithms that adjust based on your specific HVAC setup, improving efficiency. This version also added multilingual support, offering control in English, French, or Spanish via the Nest device, website, and mobile apps.

Version brought some exciting new features, such as the ability to control just the fan, activate the AC when humidity reaches a certain threshold, and modify temperature settings when the thermostat is exposed to direct sunlight.

Now, let’s explore what the installation and setup process is like.

Nest Installation

The installation requirements for Nest aren’t too demanding. To start, you’ll need a WiFi network with Internet access in your home or business. Once that’s in place, you can focus on your current thermostat.

Nest is built to work with the standard wires commonly used in HVAC systems for both homes and businesses today. The installation process actually begins before you even buy a Nest unit:

If Nest’s website indicates that your system isn’t compatible, you can consult an HVAC professional for other options. You may want to check here to find a Nest-certified professional in your area. If you can’t find one, be prepared to share what you’ve learned with your HVAC technician and direct them to the Nest Labs support site. Nest.com also lists supported wiring combinations here.

The second-generation Nest thermostat offers 10 wire connection points compared to the original Nest's eight, so if your system wasn't compatible when it first launched, it's worth checking again. The company claims that the new Nest Learning Thermostat is compatible with 95 percent of 24-volt (low-voltage) HVAC systems, an improvement from the first generation’s 75 percent compatibility.

Once you confirm that your home’s wiring is compatible, you can proceed with purchasing and installing your Nest. If you’re comfortable installing a light fixture or ceiling fan, you can likely follow the instructions from Nest and handle the installation yourself. However, if you’re uneasy about connecting copper wires, you can use the Nest Certified Professionals directory to find a professional installer nearby.

After physically installing the device, follow Nest’s setup instructions to connect the thermostat to your WiFi network and Nest account. Once that's done, you’ll be able to start using Nest to control your HVAC system.

Within a week of making necessary temperature adjustments, Nest should have established a solid operating schedule for the upcoming weeks. Additionally, it continuously learns by gathering data about you, your habits, and your local weather conditions over time.

Next, let’s take a quick look at the benefits and challenges of this product in the HVAC market.

Nest Advantages and Challenges

Despite its many features, Nest still faces significant challenges. As of early 2014, each Nest thermostat is priced at $249. This price point is more than double and, in some cases, five times that of programmable thermostats from established brands like Honeywell, Filtrete, and Cadet. Non-programmable thermostats are even more affordable, with some models costing under $20. As a result, Nest's customer base is likely limited to individuals with moderate to high incomes or those who highly value its design and energy-saving capabilities.

In addition to the price difference, Nest is up against a large number of consumers who are unfamiliar with how their HVAC systems work. While Nest's marketing explains the system’s features in simple terms, convincing customers to buy may still be a challenge. It’s possible that Nest's target market could shift towards HVAC professionals and contractors, rather than homeowners and business owners.

In early 2012, Honeywell, the largest thermostat brand in the U.S., presented a major challenge to Nest Labs. On February 6, 2012, Honeywell filed a patent infringement lawsuit against Nest, citing seven of its patents. Just two days later, Nest responded, stating, 'Nest will vigorously defend itself against Honeywell's patent-attack strategy to stifle thoughtful competition, and we have the resources, support, and conviction to do so.' As of early 2014, the case is on hold, but another company, Allure Energy, filed its own patent infringement lawsuit on May 14, 2013. It remains to be seen how these legal battles will unfold.

In January 2014, Google announced its acquisition of Nest for $3.2 billion. If the acquisition is approved by regulators, it will allow Google to enter the connected home device market and potentially provide Nest with more resources to fight ongoing patent disputes. This deal has raised concerns about privacy, as some worry it will grant Google access to the data collected by the Nest Learning Thermostat's sensors and other Nest products, like the Nest Protect smoke and carbon monoxide detector. Nest assures users that it will adhere to its privacy policy, using the data solely to improve Nest's products and services.