What is a smart meter?
A smart meter is an electronic device that records energy consumption in intervals and communicates this information back to the supplier for monitoring and billing.
How it works
It replaces your traditional meter, automatically sending meter readings via a secure national network.
In-Home Display (IHD)
Most smart meters come with a display unit that shows you your energy usage in real-time.
Meter types
SMETS1
First-generation meters that sometimes lose their 'smart' functionality when switching.
SMETS2
Second-generation meters that stay smart even if you switch suppliers.
Is it right for me?
Smart meters are ideal for:
- 1
Better control
Seeing exactly what you spend helps manage usage.
- 2
No manual readings
Never worry about submitting manual meter readings again.
Am I eligible?
Most households are eligible for a free installation.
Suppliers must offer them: Energy suppliers are mandated to offer all households a smart meter.
How to compare meter features
Follow these steps to make an informed choice:
- 1
Ask for SMETS2
Ensure your supplier installs a current SMETS2 unit.
- 2
Review IHD benefits
Check that the IHD display is easy for you to read.
Pros and Cons of smart meters
Pros
- Accurate billing (no estimates)
- Real-time usage visibility
- Supports time-of-use tariffs
Cons
- Installation time required
- Can struggle with poor signal areas
- Initial adjustment period
Why upgrade?
It allows for a more modern, automated interaction with your energy supplier and provides granular data on your habits.
Potential risks
Engaging with smart meter installations requires care to ensure you don't overpay or miss critical protections.
For energy, failing to switch or manage your smart meter can lead to higher costs. For finance, errors on your report can lead to loan rejections.
Always use verified, independent sources like Ofgem or regulated financial services to compare options.
Alternatives
If you don't want a smart meter:
Traditional billing
Continue submitting manual meter readings every month.
FAQs
About this guide
Written and reviewed by the Grow Your Business team, and kept up to date as rates, rules and provider terms change.
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