You may have heard about smart meters, but do you know why they are being rolled out to everyone in Australia?
In this article, we’ll give you an overview of the technology and what it can mean for you.
What is a smart meter?
A smart meter is a new type of meter to replace the old analogue ‘spinning wheel’ meters. It can send data on your electricity use back to the grid, which means no more estimated bills. They tell the electricity companies how much electricity people are using and when, which enables them to plan better, and smart meters also help them to know if there’s a problem more quickly.
Why am I getting a smart meter?
Many homes and small businesses already have a smart meter (if you live in Victoria, have solar, or your home was built after 2017, you likely already have one). But if you don’t, you likely soon will because smart meters are being rolled out to all Australians by 2030.
In the same way that we now have new digital TVs, smart meters are just an upgrade. The new meters are being rolled out because older electricity meters use outdated technology that is no longer suitable for our changing energy system.
Getting the data from everyone’s smart meters can help the companies that own the poles and wires (the networks) plan whether they need to build more infrastructure, such as neighbourhood batteries, in certain areas to meet consumer demand. It also tells the networks where they don’t need to build more infrastructure, which should stop the energy sector from building too many poles and wires etc, the costs of which flow through to your energy bills.
Also, if your power goes out, it's much quicker for your energy provider to get information on what the issue is via smart meter readings - so they can find the problem and sort it out more quickly, and this should help them fix the problem faster.
How can a smart meter benefit me?
1. More accurate billing
Smart meter readings are more accurate and the data is sent to your energy company regularly, instead of only when a meter reader comes out to physically check your meter as happens with the old meters. This should mean you only get charged for what you use. It makes estimated readings a thing of the past.
2. More choice of energy plans
Once you have a smart meter, you can access a range of different, more complex pricing plans, such as time-of-use tariffs. These plans are not for everyone, but if you can easily change when you use energy, or your house is energy efficient (it doesn’t ‘lose heat’ when you heat it in the winter and ‘lose cold’ when you cool it in summer), and you can change when you use your heating, cooling and hot water (for example, because you work from home), they can save you money. You can learn about the different types of pricing plans in our article, What makes up the cost of an electricity bill?
3. Enabling you to use new technology
A smart meter enables you to have new technology products, like a home battery or an electric vehicle. That’s why a lot of people who have smart meters got their new meter when they had solar installed on their roof.
FAQs
When will I get a smart meter?
Everyone should receive a smart meter by 2030 as part of the national rollout. You may choose to purchase one earlier if you want to install solar. If you are in Victoria or in a newly built home, you probably already have one.
Does getting a smart meter mean I automatically get access to my energy use data?
No - and we want to change that. We think everyone should have access to their own energy use data so they can make informed decisions about their energy use. After all, how can you save money if you don’t know which one of your appliances is using so much energy?
We’ve put in an application to change the energy rules to enable this. The energy sector is currently ‘consulting’ on this application.
In the meantime, the best way to stay on top of your usage is to understand what makes up the cost of a power bill.
However, many retailers now have apps or online portals that allow you to track your energy use roughly one day later if you have a smart meter. If this is important for you, make sure that you are with a retailer that offers this service. If you’re getting solar, check with your provider if an app or device comes with your system.
How much does a smart meter cost?
At Energy Consumers Australia, we don’t believe you should be charged for the installation of a smart meter as part of the national rollout, especially for a technology that benefits the whole system. However, if you are getting a smart meter installed when you purchase a solar system, you may have to pay for it.
If you are having a smart meter installed as part of the national rollout, and it is a straightforward installation, you probably won’t have any up-front charges - but this may depend on where you are in the country and who your retailer is. We’re aware that some consumers are paying an extra ‘levy’ on their bills as part of their supply charges.
Installing a smart meter in a new home should be straightforward, but if you live in an older home some electrical rewiring may need to happen. Similarly, apartment buildings can be complicated, due to the nature of how they are wired. In these cases, there may be costs related to upgrading the wiring of the building.
