Target Temperature is the temperature you set your heating/cooling system to reach and maintain.
For example, you may set the air conditioning at 84-degrees. When the thermostat temperature rises above 84-degrees, the air conditioning will turn on and begin to cool your home to your target temperature of 84-degrees.
Likewise, you may set the heating at 68-degrees. When the thermostat drops below 68 degrees, the heating system will turn on and begin to warm your home to your target temperature of 68-degrees.
Target temperature is also known as a "set point".
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