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A smart meter, or an ‘advanced meter’, is a digital device that uses two-way communication to measure how much electricity you use and when.
It records your energy usage in at least 30-minute intervals and then sends this information back to your energy retailer, allowing the retailer to read your meter remotely theoretically.
The main benefit of a smart meter over any other type of electricity meter is that rather than supplying you with your total electricity usage each day or every three months, a smart meter can give you more detailed reports about how much you are using and at what period of the day. This will allow you to understand better your family's or business's energy consumption pattern.
Your energy retailer will offer smart meters when your current meter is getting old.
What is a smart meter and how does it work?
A smart meter, or an ‘advanced meter’, is a digital device that uses two-way communication to measure how much electricity you use and when. It monitors your energy usage every 30 minutes.
The data is then sent to your energy provider. This allows them to read your meter without visiting your home. Smart meters can do several other things remotely as well, such as;
- Allow the supply of electricity to be switched on or off remotely without the need for a technician;
- Measure the energy quality of your home;
- Allow your energy distributor to know when there is a power outage at your home.
This means that the traditional dial, cyclometers, and digital inverter meter numbers will reduce over time as they get replaced. However, some retailers, for example, in Victoria, have active programs that replace old electricity meters, so if you don’t have a smart meter yet, you might soon.
What are the benefits?
The main benefit over any other type of electricity meter is that rather than supplying you with your total electricity usage over a set period, e.g. between meter reads, a smart meter can give you more detailed reports about how much you were using and at what period of the day. This allows you to adjust your energy usage and determine when you use the most energy during the day. Other benefits also include the following;
- Allows electricity retailers to offer you more innovative products or services customised to your energy needs;
- Allows retailers to identify outages quickly as well as reduce the number of outages occurring;
- Give you data to know if it is worth getting different power services such as home storage batteries;
- Allow you to see whether solar is a viable option for your home or business;
- Allow you to choose a different electricity plan which might be more applicable to your energy needs.
How can I get a Smart Meter?
Getting a smart meter for your home usually happens in two ways, first, if your current meter is not working well or is too old, your energy company might automatically replace it with a smart meter, this makes the switch easy for you. Second, if you buy something like a solar panel system that needs a smart meter, your energy company will help you get one.
Now, the important question is, how much does it cost? Smart meters can make things better for the company by saving money and giving better service, but they might not always give them out for free.
So, if you’re thinking about getting a smart meter, it’s a good idea to check with your energy company to determine the cost. This way, you can make a smart choice that fits your energy needs and your budget. Switching to a smart meter is not just a tech upgrade; it’s also a step towards using energy in a smarter and more cost-friendly way.
It might cost you
The cost of acquiring a smart meter can vary among energy retailers, each adopting distinct approaches in how they charge consumers. Some companies charge a fee for installation.
Others include the cost in your monthly payments. This cost will appear on your electricity bill. Expect to spend around $350 to $500 for the smart meter, unless your switchboard needs extra updates, which could cost more.
It’s important to highlight that certain energy retailers offer the installation at no extra cost as part of their electricity contract packages. If your current provider doesn’t provide this service for free, it’s advisable to explore alternative energy retailers. By doing this, you might find a cheaper electricity plan that also comes with a free installation.
Making a decision about a smart meter involves weighing the upfront costs against potential long-term benefits. Although the upfront cost may be high, real-time energy data and increased efficiency can lead to long-term savings. If you’re thinking about getting a smart meter, it’s a good idea to check out different energy companies. This could help you find a better and cheaper energy plan that fits your needs.
