According to UK Government statistics, there are over 34 million smart and advanced meters installed in homes and small businesses in Great Britain.

With the same source estimating that 61% of Great Britain’s meters are smart or advanced meters, it’s no surprise that more households are considering the switch.

As GOV.UK highlights, the current government framework encourages energy suppliers to aim for essentially all meters to be smart meters by 2026, though this framework does allow for some wiggle room as households do not have to get a smart meter after all.

That said, all households should certainly consider the step up since smart meters are accurate, modern alternatives that can tell how much gas and electricity you use and send this data directly to your energy supplier.

These meters can result in lower energy bills as a tool to encourage changing behaviours. With access to your energy use levels, you might find you make a more conscious effort to keep the lights off when they’re not needed or limit your use of high-energy appliances when energy prices are higher.

There’s more to smart meters’ potential savings and benefits than meets the eye, however, as we’ll explore in this guide. Let’s dive in!

Key Points:

• Smart meters can lower energy bills by encouraging better energy-saving behaviours. By displaying real-time energy usage, they help households become more conscious of their consumption and make adjustments, such as reducing usage during peak times.
• To fully upgrade, you’ll need a smart meter for both gas and electricity, as they work together to provide a complete picture of your energy use.
• According to the UK Department for Energy, having both a smart electricity and gas meter can reduce energy bills by around 2% on average, as consumers become more aware of their consumption.
• A smart meter is necessary for selling excess solar energy back to the grid, allowing homeowners with solar panels to take advantage of schemes like the Smart Export Guarantee (SEG).
• Modern smart meters may experience connectivity issues in rural areas, where network coverage is weaker, potentially affecting their ability to send real-time data to energy suppliers.

What Is A Smart Meter And How Do They Work?

A smart meter is a digital unit that offers households more accurate electricity or gas readings (both if you decide to have each meter upgraded), along with increased convenience and advanced features.

Smart meters connect directly to energy suppliers through a wireless, secure network. They usually send data once a month, if not more often.

This means no need for you to send readings manually to your supplier, which can be a hassle and could lead to incorrect data getting passed on. Smart meters make energy use and energy readings alike less stressful and more manageable.

Smart meters also often come with in-home digital displays. These provide households with easy access to information like daily energy use, monthly energy usage, and current energy use!

This compact and portable display is often mistaken for the smart meter itself. All the same, this little screen can keep you informed (including with real-time energy use data) and may inspire you to reduce your energy bills.

Also, smart meters’ more accurate readings mean only paying for the amounts of electricity and/or gas you use!

They do not generally save money directly, although more accurate readings could lead to marginal direct savings in some cases. However, behavioural changes are much more likely to lower your energy bills as an indirect benefit of using smart meters.

The Smart Meter Market

These smart, wireless devices have grown in popularity globally through the 21st Century so far.

In fact, Transforma Insights predicts the number of global smart meter installations will hit 3.4 billion in 2033 with there already being more than a billion units installed to date (as noted above).

While they were invented decades ago, smart meters have become more common in the UK, in particular since 2011, when a government-led rollout began. All in all, smart meters have been replacing old analogue electricity and gas meters in Great Britain for many years now.

However, GOV.UK data shows that about one in four households have yet to make the switch in Great Britain. This could be down to some being unaware that they can likely get a smart meter installed for free (more on this below) while others remain skeptical.

How Smart Meters Can Lower Carbon Emissions

As with any nation looking to lower its carbon footprint, the UK has benefited from the rise in smart technology. Smart meters act as an important way of lowering household carbon emissions in particular.

Notably, this technology could lower Great Britain’s carbon use by around 3.3 million tonnes of CO2 each year!

This is a preliminary-level calculation based on Heatable’s estimates that the average household in Great Britain uses 8 tonnes of CO2 each year and a GOV.UK report estimates that about six in ten households have smart meters installed.

Also, the World Economic Forum says that digital technologies, in general, can lower global emissions in the energy, materials and mobility industries by up to 10% by 2030.

One way or another, it’s clear that smart meters can meaningfully contribute to lowering the UK’s carbon footprint.

Types of Smart Meters

Note: You can also categorise smart meters in terms of gas vs. electricity meters, though below, we focus on smart meter generations.

There are two types or generations of smart meters in the UK, known as SMETS1 smart meters and SMETS2 smart meters.

Here is what you should know about each version of smart meter:

• SMETS1 meters were introduced in 2013 using 3G technology
• A new generation of smart meters was required soon after*
• SMETS2 meters (or second-generation smart meters) took off in the late 2010s
• Each of these generations applies to gas and electricity smart meters alike.
• SMETS stands for ‘smart gas meters and smart electricity meters’
• If you were to have a smart meter installed now, it would be an SMETS2 smart meter.

*SMETS2 smart meters are superior since customers using them can switch energy suppliers without impacting their meter readings, which is a concern with SMETS1 meters.

These second-gen meters use a standalone network that is run by the Data Communications Company or DCC.

Getting a Smart Meter Installed

Smart meter installation is an easy process. Whether you’re looking for an electricity smart meter, gas smart meter, or both, simply contact your energy supplier to make a request.

How soon you’ll have your meter(s) upgraded could depend on the energy supplier in question.

According to Citizens Advice, you should receive an appointment as soon as possible, though this can depend on whether or not it’s urgent and how available the supplier is at the time.

Citizens Advice also notes how appointment booking windows usually fall in a two to four-hour range.

In other words, you might have time block choices, of say, 8am to 10am and 10am to 12pm for the morning time or maybe 8am to 12pm and 12pm to 4pm, with a choice of a morning or afternoon block.

On average, it will likely take somewhere between 30 minutes and two hours for your supplier to install a smart meter, though it could take somewhat longer if you have both a gas and electricity smart meter fitted simultaneously. Just be aware that the power will be off for a while during the installation process.

You’ll also get an in-home digital display with your installation, though as mentioned earlier, you’ll only need one since this can connect to both a smart gas meter and smart electricity meter alike.

You’re also entitled to compensation if your supplier fails to meet certain standards/expectations.

Again, based on information from Citizens Advice, these scenarios include where your supplier either misses an appointment, sends a person without proper tools or qualifications for the installation or/and changes the time of your appointment without giving you at least one working day’s notice and securing your approval.

Smart Meter Costs and Possible Energy Bill Savings

Let’s now answer some key questions you might have about smart meter costs and possible bill reductions.

Does a Smart Meter Cost Anything?

The good news is you can get a smart meter unit for free since the law requires that energy suppliers provide smart meters at no cost to their customers, meaning no supply cost.

However, some costs may still apply in some cases, like labour fees, even if the unit itself (supply costs) is free.

If labour costs apply, this will likely end up somewhere in the region of £40 to £60 (a reasonable range estimate for the UK average).

Looking at various services like Blue Line Plumbers Gillingham, Dulwich-Plumber, Renewable Heating Hub, and My Plumber London, heating engineers often charge between £25 and £90 per hour.

You can always double-check with your supplier before having an electricity or/and gas meter installed whether or not any costs might apply.

How Much Smart Meters Might Save You

Smart meters can save money in a few ways (as we’ll discuss shortly), though it primarily achieve this by helping customers to reflect on their energy use habits and what changes they could make. First, let’s look at the estimated energy savings.

Using Ofgem’s energy consumption estimates and the Behavioural Insights Team’s smart meter bill reduction estimates, here is how much having gas and electricity meters installed might save you:

Size of Household	Avg. Annual Bills	Adjusted Annual Bills	Est. Yearly Savings*
Small Property (1- or 2-bed homes)	£1,200 to £1,280	£1,170 to £1,250	£27 to £32
Mid-sized Property (2- or 3-bed homes)	£1,750 to £1,960	£1,710 to £1,910	£42 to £47
Large Property (4 or 5-bed homes)	£1,875 to £2,295	£1,830 to £2,240	£45 to £55

How Smart Meters Can Lower Energy Costs

While smart meters don’t guarantee cost savings straightaway, they generally do lower bills through changing household behaviours around energy use, with savings being more apparent over the months or years that follow.

The in-home digital display linked to your smart meter can make you more aware and conscious of key energy use data inspire you and guide you toward better energy-saving habits.

It’s worth noting that even if you have both a smart electricity and smart gas meter, they will both connect to a single in-home digital display.

The increased accuracy of their readings could mean slightly lower bills too but not to the extent of changing energy use behaviours.

An independent Behavioural Insights Team review (the same referenced above) shows that households use about 2.3% less electricity and 1.5% less gas on average with a smart meter(s) installed.

As the name Behavioural Insights Team suggests, these reductions result from households taking on new habits or/and attitudes due to their smart meter or, more specifically, the in-home digital display data that comes with a smart meter.

Smart Energy GB reports that 86% of people with a smart meter have changed their habits to lower energy use.

In practice, this may involve a household lowering their peak-hour electricity usage. For instance, they may realise how much it’s costing them to run a washing machine or dishwasher at peak hours. Running high-energy appliances outside of peak hours can inevitably lower electricity bills.

So you can see how real-time access to energy use could help you make better decisions and save money over time while lowering your carbon footprint in the process.

Energy-Saving Tips

Improved energy-saving habits, more generally, can also lead to a household using less electricity or gas. These tips are worth considering whether or not you have any smart meter installed yet.

Some helpful tips to save on electricity include:

• Limiting shower time where possible
• Not keeping devices plugged in unless it’s required
• Avoiding leaving the lights on when out of the room

Here are some additional tips to lower your heating use:

• Keep doors closed to keep the heat in
• Draught-proof your windows with low-cost but effective solutions
• Close your curtains as the temperatures drop in the early evening
• Bleed your radiators (following the manufacturer’s instructions carefully if DIY or by hiring a qualified professional)
• Look into any low-cost or even free energy efficiency upgrades you may be eligible for*

*You can contact your local council to find out if you’re eligible for any cheap or free improvements!

Smart meters can also save energy through more accurate readings. That said, it may surprise you to know that these savings aren’t usually that great, with sources generally referencing behaviour changes rather than accurate readings for bill reductions.

The Pros and Cons of Smart Meters

With smart meter savings not being on the level you might get from, say, a smart thermostat (with news and industry sources suggesting they could lower heating bills by around 10%), it’s worth weighing up the pros and cons more broadly.

Smart Meters Advantages

Starting with the upsides, here are some key reasons you might want to go forward with a smart meter installation.

Smart Meters Might Lower Your Energy Bills

Since they are usually free and may save money, smart meters tend to be ‘profitable’. They will likely lead to energy savings through behavioural changes as touched on earlier, though this can vary from household to household. More accurate readings may also result in marginal cost reductions.

Again using information from Ofgem and Behavioural Insights Team data, smart meters might save you around £30 to £60 per year depending on your energy use, property size and other factors.

Also, using earlier estimates, labour costs might come to £40 to £60. Therefore, even in the scenarios where labour fees apply, smart meters would generally save more money than they cost to install within a year or so.

Access To Accurate Data

The in-home displays that come with smart meters’ provide you with accurate information on your energy use.

Aside from potentially helping to reduce bills, it can be helpful to have a clear picture of your spending so you can also potentially budget around your expected costs.

You Need One To Sell Solar Energy To The Grid

If you have or intend to get solar panels for your home, you’ll almost certainly need a smart meter to sell your solar energy to the grid. You do not, however, need a smart meter to simply use solar panels to power your home.

If you’d like to know more on this topic, you’ll be pleased to know we have a ‘Smart Meters and Solar Export Tariffs’ section further down in this guide!

No More Manual Readings

With a conventional meter, you need to dedicate time to check your meter readings manually before sending the data to your energy supplier.

However, a smart meter takes care of all this work for you. This not only saves time and hassle but can prevent incorrect readings that may result from evaluating and sending the data manually.

With a smart meter, energy readings are made easier and more modern while managing your energy use is also much easier as highlighted above.

Smart Meters Can Lower Your Carbon Footprint

By using a smart meter’s in-home display to guide your energy use choices, you can also lower your carbon footprint in the process, helping to play a small but meaningful role in pushing for a greener world.

Also, not only can smart meters make your home more eco-friendly, but they can also lower the UK’s overall carbon footprint, as mentioned earlier.

As we discussed earlier, smart meters potentially lower the carbon footprint of Great Britain by several million tonnes annually.

Moreover, smart technology in general can help to reduce energy grid use, which will further lower household carbon emissions over time.

Though a GOV.UK statistical release shows the UK’s share of renewably generated electricity reaching 51.6% in the second quarter of 2024, there remain challenges to reaching key energy and climate targets.

Energy experts have recently warned that issues with grid connections are holding back the UK’s renewable energy development.

This is with the government aiming for 100% clean and affordable electricity by 2030, as we discussed in our guide to Labour’s return to government and what this means for energy. Also GOV.UK highlights how the UK remains committed to reaching carbon net zero by 2050.

Ultimately, the growth of renewable energy, smart technology, low-carbon transport and more are all important to reaching various energy and climate goals.

Beyond that, data from the Office for National Statistics shows UK households are responsible for about a quarter of the nation’s overall emissions, lowering carbon emissions in households isn’t a small matter when it comes to hitting key targets.

Smart Meters Disadvantages

For a balanced and more detailed understanding of smart meters, it’s important to consider the downsides, too.

Network Coverage Can Be An Issue

While SMETS2 smart meters use up-to-date and relevant tech, they can still malfunction sometimes.

Also, those living in rural areas may have more difficulties connecting to the network. If this is a concern, it’s best to chat with the installation service ahead of time to consider what to expect.

This is because smart meters use a secure mobile network instead of Wi-Fi. So, if you live in an isolated region, your phone signal will be a better measure of how good a smart meter connection could be if added to your home than your Wi-Fi connection.

Unfortunately, if your property’s smart meter connection is poor, there aren’t any real alternatives. With old manual meters on their way out, this is clearly an issue that the government should prioritise.

You Need To Be Connected To Mains Gas For A Smart Gas Meter

If you are not connected to the mains gas grid, you won’t be able to get a smart gas meter unfortunately, though you could still certainly acquire a smart electricity meter in this scenario.

Savings Are Not Automatic And Usually Not A Huge Amount

The estimate that a mid-sized household may save between £42 and £47 on average is just that, an estimate.

Some households may see less savings than the estimates suggest, and other properties may see no reductions.

So, it’s important to take a proactive approach in using your smart meter data (which is shown through its in-home digital display) to make these cost savings a reality.

This includes considering the energy-saving tips and ideas mentioned earlier like avoiding or limiting running high-energy level appliances during peak energy hours.

Also, while every penny counts, smart meters do not usually save a lot, though this could still be helpful particularly if on a tight budget and more so during the winter.

After Ofgem’s 10% price cap increase from October 1st, this is especially relevant ahead of winter 2024/25. Of course, and as GOV.UK highlights, energy demand is generally higher in the winter, as you’d expect.

Having Access To Too Much Data Might Be Stressful

Another potential downside is that having too much access to your energy usage data may cause unnecessary anxiety. 

This may be more likely an issue if you feel prone to checking and double-checking information too often to the point that it causes more anxiety than it is helpful.

That said, it’s possible to mitigate this with helpful habits (e.g. only checking your meter’s in-home display once per week and using a phone alarm as a reminder).

Smart Meters and Solar Export Tariffs

A smart meter is almost always required to benefit from a solar export tariff, in which suppliers will pay for the electricity you generate but do not use and wish to sell back to the grid.

How much suppliers will pay for your solar energy might range from £0.12 to £0.30 per kWh, though rates can vary depending on the specific tariff and company as well as your location.

Based on estimates from various sources, exporting solar may earn you between £80 and £170 a year.

For instance, one source estimated that a three-bed house with ten solar panels installed may earn up to £112 a year from selling solar power back to the grid.

With the Smart Export Guarantee or SEG, energy suppliers must purchase low-carbon electricity from households that are selling back to the grid.

Some of the best solar tariffs, a.k.a. SEG rates (per their average) in the UK, are:*

• Octopus Energy – £0.26 per kWh
• OVO Energy – £0.15 to £0.20 per kWh
• ScottishPower – 0.12 to £0.15 per kWh
• E.ON Energy – £0.17 per kWh
• British Gas – £0.15 per kWh

*In many cases, the best export rates a supplier offers will come with some fairly strict requirements. For example, OVO Energy requires that customers purchase solar installation and energy from them to enjoy their higher rates of £0.15 to £0.20 per kWh. Otherwise, the export rate is just £0.04 per kWh.

To choose the right tariff for you, it’s important to weigh up what a supplier pays, the type of tariff, tariff length and payment cycle.

Households that generate more solar energy or/and opt to sell more to the grid than most may even earn several hundred pounds annually rather than somewhere in the average range, say £100 per year.

A solar battery can also support households looking to store and sell energy to the grid. With export prices (how much you earn for selling to the grid) differing based on on-peak, off-peak and regular energy periods, a storage battery can allow households to store energy when prices are low and sell back to the grid during on-peak hours.

Whatever approach you like, it’s best to discuss it with a solar installer before deciding, as there are many criteria, pros and cons, and requirements to consider first.

Have Smart Meters Been A Success And What About The Future?

A government-led smart meters rollout began in 2011 and now approximately six in ten households in Great Britain have the technology installed.

That said, the government missed their initial target of essentially 100% smart meter installations for homes and businesses by 2020.

However, GOV.UK highlights the target is now the end of 2025. With energy suppliers and stakeholders planning to replace all 800,000 old RTS meters (one type of manual meter) by July 2025 and a growing interest in smart meters more generally, this target is not so far-fetched.

All the same, this still means that millions more manual meters will need replacing in less than fourteen months, which would still require the pace of smart meter replacements to speed up rapidly.

With first-generation smart meters having come with some notable issues (including problems related to switching suppliers), many households may not realise the improved nature offered by new, second-generation smart meters.

In 2023, the Public Accounts Committee made the case that the smart meter programme had failed to secure public support while highlighting delays in the rollout.

However, with a new government that is especially keen to propel renewable energy and lower the nation’s carbon emissions (highlighted by projects like GB Energy), the coming years may still prove hugely beneficial for smart meter technology in the UK.

Is It Worth Getting a Smart Meter?

In conclusion, getting a smart meter, especially when it’s free, is generally worth it for the convenience and possible savings.

Though savings aren’t guaranteed (and even then, they don’t tend to be a lot), there usually isn’t a great reason not to have a smart meter installed. 

The only exception might be if you feel having too much access to your energy use will increase your stress levels, though, as mentioned, this can often be dealt with through helpful habits like only checking the meter once a week.

By contacting your energy supplier, you can find out how soon you can have an electricity or/gas meter installed so you can bring your home and energy use into the 21st century!

FAQs

Q: Can I choose my smart meter?

A: In most cases, your energy supplier will provide you with a smart meter, meaning you won’t be able to decide what manufacturer of smart meter to install. Therefore, smart meter installation is not usually like having a washing machine or boiler installed, where you also get to weigh up a range of brands and products beforehand.

Q: How do smart meters work?

A: Smart meters are digital devices that hook up to a smart meter network (a.k.a, a communications hub) to send energy readings directly to the energy supplier.

Q: Are smart meters legally required?

A: On the one hand, you are not legally required to accept a smart meter installation. That said, depending on your situation when your manual meter needs replacing, your energy supplier may only offer a smart meter replacement. This could depend on who your supplier is and even your location. So, while not a legal requirement, smart meters can also be the only option in some cases, making it effectively a ‘requirement’ for some households.

Q: What about data privacy concerns?

A: The good news is that smart meters connect to a secure, wireless network, making data privacy risks very low. Also, flexibility, like the ability to decide how often your supplier receives your data can provide more power to you as well as peace of mind.

Q: How long do smart meter units last before needing a replacement?

A: Smart meters tend to last for somewhere between 10 and 20 years, though they may go for longer if they are sufficiently durable and with a bit of luck.

Q: Could a smart meter increase bills?

A: A smart meter will usually lead to slightly lower energy bills, most likely through behavioural changes. That said, since smart meters’ more accurate readings could also alter your bills (even if only to a small degree), this could technically work against you. For example, if you don’t really make changes to your energy habits because of a smart meter, a more accurate reading can, in some cases, mean higher bills, at least at first.

Sources

• https://www.citizensadvice.org.uk/consumer/energy/energy-supply/your-energy-meter/using-the-energy-monitor-for-your-smart-meter/
• https://www.ovoenergy.com/guides/energy-guides/smets-1-and-2-new-smart-meter-generation
• https://sgs-energy.co.uk/selling-back-electricity-to-the-grid-an-seg-guide/