As of 2022, roughly 119 million smart meters were in use across the U.S., according to data from the Energy Information Administration (EIA). That represents approximately 73% of all residential meters — and 72% of meter installations overall.
This mass adoption is no surprise. Smart meters offer advantages for consumers and utilities, ranging from basic cost savings to improved energy management.
Ever wondered what a smart meter is, and whether you should get one? This guide explains the basic features, advantages, and considerations to make before deciding to upgrade.
What is a smart meter?
A smart meter is a digital electricity meter that automatically tracks your energy usage. Unlike older analog meters that required technicians to conduct manual monthly readings, smart meters transmit data directly to your utility over a secure wireless network.
This two-way communication is what gives the technology its “smart” name. With a smart meter in place, your energy provider can monitor power usage, detect outages, and even adjust real-time billing information. Some smart electricity meters can even communicate with compatible appliances or smart home systems to provide you with extra information and control over your energy consumption.
How does a smart electricity meter work?
Smart meters record your electricity usage in regular intervals, usually somewhere between every 15 minutes to every hour. This information is sent to your utility company through a secure network. Each data transmission includes the amount of power used and the time of day it was consumed.
This constant stream of data allows your utility to:
- Monitor usage trends across neighborhoods or entire service areas.
- Detect and respond to service interruptions more quickly.
- Avoid sending technicians out for manual meter readings.
- Spot equipment problems early.
Advantages of a smart meter
The benefits of smart meters go beyond accurate billing or simplified meter readings. They also help consumers and utilities manage their energy more reliably and efficiently.
For energy customers
Whether you own a home or run a business, visibility is the biggest advantage of a smart meter. You no longer have to wait for a monthly bill to learn how much energy you used (or how hard it will hit your bank account). A smart meter lets you check your usage and dig deeper into energy insights at any time.
This can pay off in several ways:
- Budget control: Set energy-spending goals and track progress to avoid bill surprises.
- Usage alerts: Receive high-usage notifications before your bill spikes.
- Faster outage updates: Get automatic alerts when an outage occurs and find estimated restoration times.
- Easier service changes: Start or stop service remotely through your utility’s portal.
- Time-of-use savings: Run major appliances or charge your electric vehicle at off-peak hours to take advantage of lower electricity rates.
For utilities (and why it matters for you)
Smart meters benefit utilities in several ways that can be passed on to consumers. The ability to conduct remote meter readings lowers costs, which can in turn reduce rates. Similarly, faster outage detection leads to shorter service interruptions.
Overall, a network of smart meters helps utility companies better balance grid demand, integrate renewable energy sources, and stabilize the entire electricity delivery system.
Should I get a smart meter?
Smart meters have quickly become the standard, but that doesn’t mean they’re right for every situation. Whether this upgrade makes sense for you depends on how you manage your energy use, your comfort with connected technology, and the options available from your utility.
If you like tracking your usage and getting creative with cutting costs, a smart meter can make your life easier. You’ll get access to detailed energy data through your provider’s online dashboard or app. These tools provide quick summaries and visuals to help you spot patterns, adjust your thermostat, or time appliance usage appropriately. This visibility is especially useful if you’re on a time-of-use plan or have solar panels or EV charging at home.
Before deciding, it’s worth weighing a few factors:
- Privacy and data sharing: Smart meters record detailed usage data, and some consumers are hesitant to share more personal information.
- Fees and opt-out rules: You can decline a smart meter in some states, but you may have to pay an additional monthly fee for manual readings.
- Savings expectations: Having a smart meter doesn’t lower your bill. Your savings depend on how you use the insights it provides.
- Installation timelines: Some utilities are still phasing in upgrades, so smart meters may not be available in your area.
Smart meter usage tips
A smart electricity meter provides the data, but the key is using it to make consistent adjustments that add up to long-term savings. Incorporate a few habits to help you make the most of your new tool:
- Check your usage regularly. Log in to your utility’s app or dashboard to learn when your household uses the most energy.
- Time high-energy tasks strategically. Run dishwashers, washing machines, and dryers during off-peak hours if your utility offers time-of-use pricing.
- Set alerts or goals. Many utilities notify you when you approach a set energy threshold or spending target.
- Track changes. Compare seasonal data to understand how weather or new appliances affect your electricity use.
- Pair with smart devices. Connect thermostats, plugs, or appliances that can respond automatically to energy price signals for additional savings.
Smart meter requirements and installation
Most utilities handle smart meter installation automatically as part of grid upgrades. If your area hasn’t made the switch yet, you may still be able to request one directly from your provider.
Check with your utility to confirm:
- Eligibility: Some older homes or multi-unit buildings may need electrical panel updates.
- Scheduling: Utilities typically notify customers in advance and complete the swap in under an hour.
- Access: Confirm that technicians can reach your existing meter safely.
- Opt-out options: Before opting out (if that option is available), ask about any fees you may incur.
Once installed, your smart electricity meter starts transmitting usage data automatically. No special setup is required, and most utilities activate your online account tools within a few days.
The main takeaway on smart meters
Electricity smart meters are a modern replacement for your old analog meter. They help utilities deliver better service and empower consumers with more information about their energy consumption. With the data from your smart meter, you can limit usage, take advantage of off-peak pricing, and lower your monthly energy costs. For most households, upgrading to a smart meter is a simple way to improve consumption habits while supporting a more efficient energy grid.