- What is a Smart Meter?
- How Does a Smart Meter Work?
- What are The Benefits of Smart Meters?
- What Are the Disadvantages of a Smart Meter?
- How Much Do Smart Meters Cost?
- How Can You Get a Smart Meter?
- Can You Get a Smart Meter on a Pre-Payment Plan?
- Can Renters Get Smart Meters?
- Do You Have to Get a Smart Meter?
- What Happens if You Already Have a Smart Meter?
- How Do You Know if Your Meter is Already Smart?
- What Do You Do if Your Smart Meter Stops Working?
- Are Smart Meters Good?
Are you thinking about getting a smart meter for your home? Here’s what you need to know.
✅ Pros
🏡 Over 60% of UK homes already use a smart meter.
⚡ 86% of users say they’ve improved their energy habits.
🔌 They show real-time energy usage and costs.
📋 They eliminate the need for manual meter readings.
🌍 Helps reduce your carbon footprint.
☀️ Smart meters help you access top solar export tariffs.
❌ Cons
🛠️ Some early models stopped working after switching suppliers.
🕒 Time-of-use tariffs may not suit everyone.
💸 Smart meters don’t automatically save you money.
📉 The rollout has faced delays and high costs.
⚠️ Broken meters have caused billing issues for some households.
Every home in the UK is being offered a smart meter as part of a multi-billion-pound rollout. These devices are changing how we use and pay for energy.
That said, the rollout hasn’t been smooth for everyone. Some customers have been left with meters that don’t work properly. There are also plans to charge more for using energy during peak times.
On top of that, energy providers can use smart meters to remotely switch people who fall behind on their bills to pre-payment meters.
Despite these concerns, smart meters play a big role in cutting carbon emissions from homes and improving energy efficiency.
Over 1 billion have been installed worldwide (IoT Analytics, 2024), and by the end of 2023, over 60% of homes in Great Britain had a smart meter.
The government aims to increase this to 74.5% of homes and 69% of small businesses by 2025.
If you don’t have a smart meter, your energy supplier will likely offer you one within the next 18 months. Contact them to ask about getting one.
In the meantime, here’s a quick guide to how smart meters work and whether they’re worth it for your home.
What is a Smart Meter?
A smart meter is a digital device that measures how much gas and electricity you use and sends the data to your energy supplier automatically. This means you don’t need to take manual readings
These meters are more accurate than traditional ones, meaning you only pay for the energy you use.
Smart meters come with an in-home display (IHD). It’s a small screen that shows your energy use and costs in real time. Many people think the IHD is the “smart” part, but it’s the meter itself that tracks and transmits your energy data securely.
How Does a Smart Meter Work?
Smart meters have two main components:
The smart meter: This device measures your gas and electricity use and sends the readings to your supplier using a secure wireless network. The process is automatic, and each property has separate meters for gas and electricity.
The in-home display (IHD): This portable screen updates you on your energy use and costs. Electricity readings are updated in near real time, while gas readings refresh every 30 minutes.
Smart meters send your data securely, at least once a month, so you don’t have to lift a finger. With the IHD’s real-time updates, you can see exactly where your money is going and make informed decisions about your energy use.
What are The Benefits of Smart Meters?
Smart meters make managing your energy use simple. They help you save money, reduce your carbon footprint, and give you accurate bills without the hassle of manual readings.
If you have solar panels, they also let you earn money from surplus electricity through export tariffs.
Let’s break down why a smart meter could be a game-changer for your home:
Save money on energy bills
Smart meters don’t directly reduce your energy bills, but they give you control over how you use energy.
According to Smart Energy GB, 86% of smart meter users have changed their energy habits and saved money as a result.
The IHD shows how much energy you’re using and how much it’s costing you. Seeing how much you’re spending in real time can help you make smarter choices and adjust your habits.
For example, you might notice that running your tumble dryer during peak times adds more to your bill than expected. Switching to off-peak hours can lower your costs.
Small changes like this build up over time to help you save money and use energy more efficiently.
Reduce your carbon footprint
Using a smart meter at home helps you cut your carbon footprint and fight climate change.
Households are a major source of carbon emissions. In the UK, residential energy use accounts for 17% of the country’s total emissions.
In 2023, almost 44% of the UK’s electricity came from non-renewable sources. For example, gas-fired power plants contributed 32% of the electricity generated.
Reducing your energy use lowers the demand for fossil fuels, cuts carbon emissions, and helps create a greener future.
Help tackle the climate emergency
Smart meters play a key role in fighting climate change by helping energy network operators balance the grid. They provide detailed data about national energy use, making it easier to match supply with demand.
This improved efficiency means suppliers only produce the energy people need, reducing waste and lowering carbon emissions.
Don’t worry, your energy company isn’t tracking what you’re doing at home. Instead, they combine data from thousands of households to create a bigger picture of energy use across the country.
Access to solar export tariffs
A smart meter lets you benefit from solar export tariffs. If you have solar panels, these tariffs pay you for the extra electricity you generate but don’t use. This surplus energy is sent back into the grid, and you earn money in return.
Most export tariffs require you to have a smart meter. Without one, it’s almost impossible to measure how much electricity you’re exporting accurately.
Solar panel installations can be expensive, but a smart meter ensures you get the most from your investment. On average, a household can earn around £350 per year through solar export income.
This estimate is based on a typical UK home with a 4.4kWp system, a 5.2kWh battery, exporting 34% of its solar electricity, and using 3,500kWh of electricity annually under standard solar irradiance conditions.
Get accurate energy bills
Old meters often rely on manual readings, which can lead to inaccurate estimates. A smart meter changes that.
It records your energy use in real time and sends the data directly to your supplier. This means your bills are based on your actual energy consumption, not an estimate.
With a smart meter, you always pay for what you’ve used. Nothing more, nothing less.
Access to energy-saving initiatives
A smart meter gives you access to advanced time-of-use tariffs. These tariffs let you pay less for energy at certain times of day and may even pay you to use electricity during specific periods.
For example, on windy days when wind turbines generate excess electricity, energy suppliers might offer lower prices. Some suppliers already provide these tariffs, and more are likely to follow in the future.
You could also qualify for seasonal initiatives like the Demand Flexibility Service, which rewards you for reducing your energy use during peak times.
What Are the Disadvantages of a Smart Meter?
Smart meters have plenty of benefits and very few drawbacks. Here are the only two you might want to consider:
Coverage by the DCC network
Smart meters don’t use Wi-Fi. They rely on a secure mobile network run by the Data Communications Company (DCC) to send data between your home and your energy supplier.
The DCC network covers 99.3% of the UK, but there’s a small chance your area might not be supported. That said, poor mobile signal doesn’t necessarily mean smart meters won’t work.
No automatic savings
Smart meters don’t automatically save you money. They track your energy use and give you data, but it’s up to you to use that information to adjust your habits and cut costs.
Challenges with time-of-use tariffs
Time-of-use tariffs offer cheaper energy at off-peak times, but they can make energy more expensive during busy periods. If you rely on using energy during peak hours, these tariffs might not save you money.
Issues with first-generation smart meters
Some early smart meters, called SMETS1, caused problems when people switched energy providers. These meters often lost their smart features and worked like traditional ones.
This was because some SMETS1 meters couldn’t make automatic readings as they weren’t compatible with the national communications network.
Although many have been upgraded to fix this, some households still experience issues.
Broken smart meters and billing errors
Faulty smart meters have caused billing issues for millions of households. In 2024, it was revealed that some customers received unexpected bills due to broken meters.
According to the Department for Energy Security and Net Zero (DESNZ) suppliers underestimated previous estimates for broken smart meters.
How Much Do Smart Meters Cost?
Smart meters are completely free to install. There’s no upfront charge, as your energy provider recoups the costs through your energy bills over time.
Some energy companies might also offer an optional energy efficiency inspection when installing your smart meter. You’re not required to follow their recommendations or purchase any suggested products. It’s entirely up to you.
How Can You Get a Smart Meter?
Getting a smart meter is simple and free. Start by contacting your energy supplier. They’re responsible for providing and installing your smart meter. You can use Smart Energy GB’s search tool to find their contact details.
Your supplier will arrange an appointment for a professional to install the meter. The installation is quick and usually takes about 90 minutes, depending on your home and the location of your existing meters. Be prepared for a brief power outage during the process.
Your energy provider will explain how to use your smart meter once it’s installed so you can make the most of its features.
Can You Get a Smart Meter on a Pre-Payment Plan?
Yes, you can still get a smart meter if you’re on a pre-payment plan. Your energy provider will set it to work in pre-payment mode instead of credit mode.
Can Renters Get Smart Meters?
Yes, renters can get a smart meter installed.
If the energy bill is in your name, you can arrange the installation yourself. It’s a good idea to let your landlord know before going ahead.
If the energy bill is in your landlord’s name, the decision is up to them. Contact your landlord and ask if they’re willing to have a smart meter installed.
Do You Have to Get a Smart Meter?
No, getting a smart meter isn’t compulsory. If your energy supplier offers you one, you can refuse.
However, without a smart meter, you won’t be able to access time-of-use tariffs, which can help you save money. You’ll also need to keep submitting manual meter readings to your energy supplier.
What Happens if You Already Have a Smart Meter?
The UK’s smart meter rollout began in 2011 and has taken longer than expected. The original plan was to complete the smart meter rollout by 2020. However, the deadline was extended to the end of 2025 due to challenges.
First-generation smart meters (SMETS1) had some technical issues, and many couldn’t easily switch between suppliers. They also don’t always support advanced features like time-of-use tariffs.
If you already have a smart meter, you may need a replacement before mid-2025. Older meters might not meet the UK Government’s updated technical standards.
Second-generation smart meters (SMETS2) solve these issues. They give you access to advanced services, including future data features and time-of-use tariffs.
If your meter needs an upgrade, your energy provider will contact you. They’ll either replace your meter or upgrade it remotely, and it won’t cost you a thing.
How Do You Know if Your Meter is Already Smart?
There are a few simple ways to check if your energy meter is smart. If you have an IHD showing your energy use or you don’t need to send monthly meter readings to your energy supplier, your meter is likely smart.
If you’re still unsure, you can use the Citizens Advice tool to confirm.
To use the tool, you’ll need your Meter Point Administration Code (MPAN) for electricity or your Meter Point Reference Number (MPRN) for gas.
These codes are printed on your energy bills. You’ll also need your postcode. The tool is available for residents in England, Wales, and Scotland.
What Do You Do if Your Smart Meter Stops Working?
If your smart meter isn’t working or has stopped sending data, it’s called going “dumb.” This means it loses its smart functionality and behaves like a traditional meter.
If this happens, contact your energy supplier. They are required to maintain smart meters for 12 months after installation, and some suppliers may offer additional support beyond that.
You can also request an upgrade to a modern SMETS2 meter, which fixes issues like lost functionality.
However, Ofgem’s regulations include a loophole that allows suppliers to delay replacing faulty meters until the 2025 deadline. This means they may not be required to replace your broken meter right away.
To find out what help is available, visit the GOV.UK website for information on supplier commitments. If your IHD stops working, your supplier should help resolve the issue.
What Data Do Smart Meters Store?
Smart meters only store information about your gas and electricity usage. They don’t store personal details like your name, address, or bank account information.
All energy usage data is protected by strict laws. You have full control over your data. You can decide:
- How often your smart meter sends readings to your supplier (monthly, daily, or half-hourly).
- Whether to share energy usage data with third parties, such as switching sites.
- If your supplier can use your readings for sales and marketing purposes.
Your smart meter only transmits energy usage data, which is encrypted to a high standard. Only you and your energy supplier can access this information.
Are Smart Meters Good?
Deciding whether to get a smart meter depends on your preferences and needs. It’s important to weigh the pros and cons before making a choice.
If you want more control and visibility over your energy use, a smart meter could be a great addition to your home. It offers peace of mind, access to financial benefits like solar export tariffs, and helps you manage your energy efficiently.
Is there a downside to having a smart meter?
Modern smart meters have very few downsides. The main one is that they don’t automatically lower your bills. Savings depend on you actively using the data to adjust your habits. According to Smart Energy GB, 86% of smart meter users have changed their energy habits and saved money.
In the past, smart meters would lose functionality when homeowners switched energy providers. However, this issue has been resolved with second-generation smart meters (SMETS2). Most older meters (SMETS1) have also been upgraded remotely to the national communications network, ensuring they still work after you switch suppliers.
Do smart meters have any data privacy concerns?
Smart meters use a secure private network to transmit data about your energy usage, not personal information. This makes the risk of data privacy breaches very low. You can also control how often your readings are sent to your supplier, and under data protection laws, your historic energy data can’t be used for marketing without your consent.
Is it a good idea to get a smart meter?
A smart meter is a great addition to most homes. It shows you how much energy you’re using in real-time, helping you reduce your bills and avoid estimated readings. For those with solar panels, a smart meter gives access to export tariffs, letting you earn money for surplus electricity you feed back into the grid.
Do you pay more with a smart meter?
No, a smart meter doesn’t increase your energy bills. It doesn’t affect the rates your supplier charges. In fact, it’s more likely to reduce your costs. Smart meters are free to install and show your energy use in real-time, encouraging you to use energy at cheaper, off-peak times instead of peak hours.