Smart meters explained: are they worth getting?

Smart meters replace old meters. Send usage data to supplier automatically. No more crawling under stairs with a torch. You get a display showing spending in near-real time. They’re the backbone of the UK’s transition to a smarter energy grid, and they’re rolling out across the country as we speak.

How they work

Smart meters have two main parts: the meter itself (which replaces your existing unit) and an in-home display that sits somewhere convenient like your kitchen. The display shows your energy consumption in pounds and pence, updated every few seconds for electricity and every half-hour for gas. It communicates with your supplier through a secure wireless network that’s completely separate from your home WiFi, so you don’t need broadband for it to work. Even in areas with poor broadband coverage, smart meters operate independently using dedicated infrastructure.

The system works by your meter automatically sending readings to your supplier, typically once per day but sometimes more frequently. This means no more manual readings, no estimated bills, and your supplier gets accurate data about your consumption patterns. The in-home display is optional once installed, some people find it genuinely useful for spotting energy hogs in their home, whilst others barely glance at it.

SMETS1 vs SMETS2: understanding the upgrade programme

This is where things get a bit complicated, but it’s worth understanding because it directly affects your experience when you switch suppliers.

SMETS1 meters were rolled out before 2018 as part of the initial national smart meter programme. They worked brilliantly: initially. The problem was that they were designed to communicate directly with individual suppliers using different systems. When you switched supplier, your SMETS1 meter would often lose its smart functionality and revert to acting like an old, dumb meter. The display would stop updating, readings would stop transmitting automatically, and you’d be back to manual meter readings. Your new supplier couldn’t access the smart features of your existing meter because it wasn’t compatible with their system. Not ideal.

SMETS2 meters arrived from 2018 onwards and solved this problem by using a single, national communications network called the DCC (Data Communications Company). This means your SMETS2 meter will work with any supplier, anywhere in the country. You can switch suppliers as many times as you like, and your meter continues to work in smart mode. All new installations are now SMETS2.

The government has been running an upgrade programme to convert older SMETS1 meters to SMETS2 where possible. This is happening gradually, your supplier will contact you when it’s your turn, though you can also request an upgrade directly. The process is free and usually involves the engineer reprogramming your existing meter rather than replacing it entirely, though some older SMETS1 units that can’t be upgraded are replaced with new SMETS2 models. Either way, it’s free and takes about the same time as the original installation.

As of 2024, most SMETS1 meters still in homes have been upgraded to SMETS2 (at least in terms of connectivity), though the exact progress varies by region and supplier. The programme is ongoing, but the important thing is that most new installs are SMETS2, so if you’re getting one installed today, it will almost certainly be SMETS2.

What data does your smart meter collect?

This is the section that worries people most, so let’s be clear about what data is actually collected and how it’s used.

Your smart meter records:

• Your electricity consumption (measured in kilowatt-hours)
• Your gas consumption (measured in cubic metres)
• The date and time of that consumption
• Your meter readings

That’s it. It doesn’t record what appliances you’re using, when you’re home, or what you’re doing. It’s just a consumption counter, nothing more.

Your supplier receives this data for billing purposes. They can see your overall consumption patterns (for example, that you use more energy in winter), but they can’t tell whether you were watching telly or boiling the kettle. They use this information to work out your bills, to help you understand your usage, and for network management (the grid operator uses anonymised data to understand peak demand).

The data is transmitted securely through the DCC network, and there are strict regulations about what suppliers can do with it. They can’t sell it to third parties without your permission. You can ask your supplier to provide only daily or monthly readings instead of the default half-hourly granular data, which reduces the detail they see. Some people do this if they’re concerned about privacy, though it doesn’t actually reduce billing accuracy, the meter still records everything, your supplier just gets it less frequently.

In practice, most people find they’re comfortable with this level of data sharing, particularly when weighed against the benefits of accurate bills and easier switching. But if privacy is a genuine concern, you do have the right to opt for less detailed readings.

What’s useful

Accurate bills are probably the biggest benefit. No more estimated readings, no more arguments about what you owe, and no nasty surprises when your supplier finally gets an actual reading. You know exactly what you’ve used, and your bills reflect that.

Real-time display is genuinely interesting for the first month or so. You can watch your costs tick up when you boil the kettle or switch on the washing machine. Some people use this to actively change their behaviour and reduce energy consumption. Others find it mildly interesting for a bit then ignore it. A fair few people put the display in a drawer. There’s nothing wrong with any of these approaches: if you find it useful, great. If you don’t, it’s not a problem.

Switching suppliers is noticeably easier with a smart meter. Suppliers can see your actual consumption from your smart meter when they give you a quote, so they can be far more competitive and accurate. You’re not paying a premium for estimated usage. With SMETS2, your meter keeps working throughout the switching process, so there’s no gap in data collection or any of the old hassles.

No more estimated bills means you can budget more accurately. Your supplier isn’t guessing or assuming you use the same amount every quarter. If you’ve been on holiday or done extra work to insulate your home, that’ll show in your actual consumption.

Prepayment meters

If you’re on a prepayment meter (or thinking about it), smart prepay is a significant improvement. You can top up from your phone rather than trudging to a corner shop or supermarket. You can see your credit balance in real-time. You get warnings before your credit runs out, rather than your heating cutting off without notice. Switching from prepayment to credit is simpler. Modern prepayment meters track detailed usage data too, which some people find helpful for understanding their consumption.

Getting one installed

Contact your supplier to request installation, or wait for them to contact you. Installation is completely free. The process takes about an hour, sometimes a bit longer.

The engineer will turn off your electricity and gas briefly while they remove the old meters and install the new ones. They’ll set up your in-home display, explain how it works, and show you how to read your consumption. They’ll also give you contact details for your supplier in case of problems. You’ll need to be home for the appointment, and it’s helpful (though not essential) if you can provide the engineer with access to your gas meter if it’s in an awkward location or locked cupboard.

Once it’s installed, you don’t really need to do anything. Your supplier takes care of the rest, readings are submitted automatically. The display just sits there doing its thing.

Common problems (and how to fix them)

The display battery dies and it stops showing readings. This happens eventually with most displays: they typically last 4-6 years depending on usage. Contact your supplier and ask for a replacement. They’ll send a new one free of charge, usually within a week or two.

Signal problems are more common in rural areas, particularly in stone-built homes or buildings with lots of metal. The meter will still record your usage even if it can’t transmit readings as often as it should. Your supplier might get readings weekly rather than daily, for example. The meter automatically tries to catch up and send backlogged data when signal improves. This rarely causes billing problems, though you might see gaps in the data on your in-home display. If signal is genuinely terrible and readings aren’t getting through after several weeks, contact your supplier about a signal booster or alternative solution.

SMETS1 meters losing smart functionality after a switch is less common now but still happens with older meters that haven’t been upgraded. If your new supplier says your meter isn’t compatible, ask them to reconnect it through the national network or arrange an upgrade to SMETS2. Most suppliers will do this within a few weeks. It’s frustrating when it happens, but it’s being resolved gradually.

Display not updating sometimes happens due to a weak battery or loose connection. Try removing and reinserting the batteries (if battery-powered), or check that the meter is receiving signal. If the display still won’t update but your supplier is getting readings, the display itself might be faulty. Request a replacement.

Billing disputes occasionally happen with smart meters, usually because someone didn’t pay a bill on time or there’s confusion about what they’ve been charged. Smart meters make these much rarer because your supplier has clear evidence of what you’ve used. If you do have a dispute, ask your supplier to provide your detailed consumption data, which usually settles the matter.

Smart meters and switching supplier

Switching becomes noticeably smoother with a smart meter, particularly if you have a SMETS2.

When you switch, your new supplier can see your actual consumption from your smart meter. This means they can calculate your bills precisely based on your real usage rather than guessing or assuming you’re average. You get better quotes, more competitive prices, and no surprises.

With SMETS2, your meter automatically re-registers with your new supplier’s network. There’s no gap in readings, no confusion about ownership, no old meter data going missing. Everything just transfers over cleanly. With SMETS1, there’s a higher chance your meter goes dumb after the switch (as we discussed earlier), though this is becoming rarer.

The actual switching process is unchanged, you still need to give meter readings at the point of switch, just like with a normal meter. But the experience is generally smoother, and you’ll get more accurate final bills from both suppliers.

Smart meters and solar panels or home generation

If you’re generating your own electricity with solar panels, a smart meter becomes even more valuable.

A standard smart meter can track electricity flowing both ways: electricity you’re using from the grid, and electricity you’re generating and exporting back to the grid. Some suppliers offer export tariffs where they pay you for energy you’ve generated and exported. A smart meter makes this process much cleaner because it gives precise measurements of what you’ve exported, so you get paid for the exact amount rather than estimates.

Smart meters support storage devices (like home batteries) too. If you’ve got a battery system that stores daytime solar generation for evening use, your meter tracks this accurately. This helps with billing and also with Smart Export Guarantee payments if your supplier offers them.

However, it’s worth checking with your supplier about whether they’ve connected your meter to receive export data from the national network. Some suppliers are slower at setting this up than others. If you’ve got solar panels and a smart meter, it’s worth explicitly asking your supplier to enable export tracking if they haven’t already.

Should you bother?

For most households, yes. Accurate bills, not having to submit readings, and easier switching make smart meters a genuine improvement over old-style meters. The installation is free, takes about an hour, and there’s no downside to having one. Smart meters aren’t mandatory, but the government is gradually rolling them out to all UK homes as part of decarbonisation efforts, so you’ll likely get one eventually anyway.

The only reason to delay would be if you’re about to switch suppliers and you want to be absolutely certain your new supplier will install a SMETS2 rather than an old SMETS1. But since almost all installations are SMETS2 now, this is a rare concern. Even if you somehow ended up with a SMETS1, upgrade programmes are running to convert them to SMETS2 connectivity.

If you’ve been offered a smart meter and you’re on the fence, the benefits genuinely outweigh any concerns. Accurate billing alone is worth it. If you’re actively worried about data privacy, remember you can opt for less frequent readings. But honestly, most people find smart meters to be a straightforward improvement over the old alternative of climbing under stairs with a torch and squinting at a dial.