diff --git a/homeassistant/components/sensor/template.py b/homeassistant/components/sensor/template.py
index 437cc7b936e..ecd6f092097 100644
--- a/homeassistant/components/sensor/template.py
+++ b/homeassistant/components/sensor/template.py
@@ -12,9 +12,13 @@ import logging
 from homeassistant.helpers.entity import Entity
 from homeassistant.core import EVENT_STATE_CHANGED
 from homeassistant.const import (
-    ATTR_FRIENDLY_NAME, CONF_VALUE_TEMPLATE, ATTR_UNIT_OF_MEASUREMENT)
+    STATE_UNKNOWN,
+    ATTR_FRIENDLY_NAME,
+    CONF_VALUE_TEMPLATE,
+    ATTR_UNIT_OF_MEASUREMENT)
 
 from homeassistant.util import template
+from homeassistant.exceptions import TemplateError
 
 _LOGGER = logging.getLogger(__name__)
 
@@ -30,9 +34,8 @@ def setup_platform(hass, config, add_devices, discovery_info=None):
         _LOGGER.error("Missing configuration data for sensor platfoprm")
         return False
 
-    for device in config[CONF_SENSORS]:
-        device_config = config[CONF_SENSORS].get(device)
-        if device_config is None:
+    for device, device_config in config[CONF_SENSORS].items():
+        if not isinstance(device_config, dict):
             _LOGGER.error("Missing configuration data for sensor %s", device)
             continue
         friendly_name = device_config.get(ATTR_FRIENDLY_NAME, device)
@@ -45,7 +48,6 @@ def setup_platform(hass, config, add_devices, discovery_info=None):
         sensors.append(
             SensorTemplate(
                 hass,
-                device,
                 friendly_name,
                 unit_of_measurement,
                 state_template)
@@ -63,17 +65,15 @@ class SensorTemplate(Entity):
     # pylint: disable=too-many-arguments
     def __init__(self,
                  hass,
-                 entity_name,
                  friendly_name,
                  unit_of_measurement,
                  state_template):
 
         self.hass = hass
-        self._name = entity_name
-        self._friendly_name = friendly_name
+        self._name = friendly_name
         self._unit_of_measurement = unit_of_measurement
         self._template = state_template
-        self._state = ''
+        self.update()
 
         def _update_callback(_event):
             """ Called when the target device changes state. """
@@ -101,18 +101,8 @@ class SensorTemplate(Entity):
         """ Tells Home Assistant not to poll this entity. """
         return False
 
-    @property
-    def state_attributes(self):
-        attr = {}
-
-        if self._friendly_name:
-            attr[ATTR_FRIENDLY_NAME] = self._friendly_name
-
-        return attr
-
     def update(self):
-        self._state = self._renderer()
-
-    def _renderer(self):
-        """Render sensor value."""
-        return template.render(self.hass, self._template)
+        try:
+            self._state = template.render(self.hass, self._template)
+        except TemplateError:
+            self._state = STATE_UNKNOWN
diff --git a/tests/components/sensor/test_template.py b/tests/components/sensor/test_template.py
index 15f1be56928..d2aff600a89 100644
--- a/tests/components/sensor/test_template.py
+++ b/tests/components/sensor/test_template.py
@@ -12,33 +12,28 @@ import homeassistant.core as ha
 import homeassistant.components.sensor as sensor
 
 
-@pytest.mark.usefixtures('betamax_session')
 class TestSensorYr:
     """ Test the Yr sensor. """
 
     def setup_method(self, method):
         self.hass = ha.HomeAssistant()
-        self.hass.config.latitude = 32.87336
-        self.hass.config.longitude = 117.22743
 
     def teardown_method(self, method):
         """ Stop down stuff we started. """
         self.hass.stop()
 
     def test_template(self, betamax_session):
-        with patch('homeassistant.components.sensor.yr.requests.Session',
-                   return_value=betamax_session):
-            assert sensor.setup(self.hass, {
-                'sensor': {
-                    'platform': 'template',
-                    'sensors': {
-                        'test_template_sensor': {
-                            'value_template':
-                                '{{ states.sensor.test_state.state }}'
-                        }
+        assert sensor.setup(self.hass, {
+            'sensor': {
+                'platform': 'template',
+                'sensors': {
+                    'test_template_sensor': {
+                        'value_template':
+                            '{{ states.sensor.test_state.state }}'
                     }
                 }
-            })
+            }
+        })
 
         state = self.hass.states.get('sensor.test_template_sensor')
         assert state.state == ''