Benefits of smart meters: What households need to know

Smart meters are changing how households track and manage electricity usage. This article explains the benefits of smart meters and how they compare with traditional meters. 

At a glance:

• Smart meters help households track electricity usage, reduce estimated bills and access smart tariff options.
• The benefits of smart meters include better energy insights, support for microgeneration and more control over when electricity is used.
• However, smart meters may not suit everyone, especially if you cannot shift usage away from peak times.

More than four out of five households across Ireland now have smart meters, with over two million installed in homes, farms and businesses nationwide. This upgrade is changing how customers manage their electricity usage more efficiently. They are also key to achieving the country’s goal of a fossil-free electricity system by 2040.

However, before deciding whether a smart meter or smart tariff is right for you, it is worth understanding both the benefits of smart meters and the potential drawbacks.

Difference between a smart meter and a standard meter

There are some key differences between smart meters and traditional energy meters, especially when it comes to functionality.

What are the advantages of smart meters?

Smart meters have many benefits and are becoming increasingly common due to the National Smart Metering Programme, which is replacing standard meters with smart meters across Ireland. The benefits of smart meters range from more accurate billing to better energy awareness, smart tariff options, and environmental benefits.

Below are the main advantages of smart meters for Irish homes and businesses.

1. No more estimated bills with smart metering

Smart meters provide customers with real time data on energy consumption, eliminating the need for estimated bills. This allows you to be billed accurately based on your actual usage, creating fairness and transparency on your bills.

The two-way communication between you and your supplier means estimated bill should not be required as both parties have constant access to your usage levels. Meaning you will only get charged for the energy you use – this is one of the important advantages of smart meters.

2. Reduced energy consumption

Smart meters create visibility for its customers, allowing them to see their exact energy consumption in real time, and which appliances are using the most electricity. To get started, check out our step-by-step guide on how to read a smart meter. This is an advantage to customers as they have more insight and information into their energy consumption throughout the day, making them more energy aware and allowing them to reduce their energy consumption where they see fit.

Smart meters also seamlessly integrate with renewable energy sources, like wind turbines and solar panels. This integration allows the efficient management of energy generation and usage, creating a more eco-friendly and sustainable power grid.

3. Lower carbon footprint 

Besides improving energy efficiency and reducing consumption, smart meters are also good for the environment. With a smart meter, you are more aware of your energy consumption, making you use less energy. This reduces your carbon footprint and leaves you with an electricity bill that reflects your actual energy usage.

4. More information on your energy bills

With a smart meter and smart plan, your monthly electricity bills will become ‘smart’ too. These bills will provide you with information on energy consumption, year-on-year comparisons of your energy usage, helpful graphs, as well as hints and tips to help you manage your energy better. You can explore the full range of options on our smart meter plans page.

5. Improved customer service

With the ability to connect to smart meters remotely, ESB networks will be able to collect most meter readings automatically, meaning fewer estimated bills and only being billed for the energy you have used. When you also switch to a smart tariff, you will get better insights into your consumption that can help to reduce your overall energy usage. As your supplier, we will also have access to this information so that we can help with any queries regarding how much energy you’re using and when.

6. Time-of-use tariff options

Smart meters make it possible to access smart tariffs, including a Time of Use tariff. These tariffs charge different rates depending on when you use electricity. Peak rates are often higher during busy demand periods, such as between 5pm and 7pm, while lower rates may apply at other times.

Time-of-use tariffs are designed to encourage customers to move some electricity usage to cheaper times of the day. This can help customers make savings while also helping suppliers balance electricity demand more efficiently.

7. Easier error detection

Smart meters have the ability to detect abnormal energy usage patterns and potential system issues, which facilitates early identification of problems. This benefit of smart meters enables timely intervention and maintenance of meters to prevent energy wastage and system inefficiency.

8. Export and earn with microgeneration

Smart meters are also useful for customers who generate their own electricity through microgeneration, such as rooftop solar panels. They help measure exported electricity more accurately, allowing suppliers to calculate payments for excess electricity sent back to the grid.

What are the downsides of smart meters?

While the benefits of smart meters are clear, there are also some disadvantages worth considering:

1. No option to go back

After smart meter installation, you cannot switch back to a traditional meter. Even if you move into a property with a smart meter, it cannot be replaced with an older model. This is due to traditional meters not being manufactured or refurbished anymore.

2. Time-of-Use tariffs may not suit everyone 

While these smart tariffs can save money, they also mean higher charges during peak times (between 5pm and 7pm). If you cannot adjust your energy habits, you may not get full benefit. You can review Energia’s tariff rates to understand peak and off-peak pricing before choosing a tariff.

3. Some users may find new tech confusing 

Some customers may find the new digital displays and smart tariffs confusing at first, especially compared to the simplicity of older meters.

4. Reliance on mobile phone signal

Smart meters use a secure mobile network to communicate with your energy supplier. In some rural areas with poor connectivity, this may occasionally affect automatic readings.

FAQs: Benefits of smart meters

Can you go back to the normal meter from the smart meter?

No, it is not possible to switch back to a traditional meter. 

What are the benefits of smart meters?

Benefits of smart meters include real-time energy tracking, time-of-use tariff options, lower carbon footprint.

Is there a downside to having a smart meter?

Smart meters have downsides such as reliance on signal strength, inability to revert to traditional meters, and potential higher costs during peak tariff times.

Do smart meters need WiFi?

No. Smart meters do not require WiFi to function. Instead, they use a secure mobile network to communicate with your energy supplier.

Do you actually save money with a smart meter?

A smart meter does not automatically save money, but it can help you track usage, reduce waste, and choose a tariff that better suits your habits. Customers who can move some usage away from peak times may be able to save money with the right plan.

Are smart meters safe for your health?

Yes, smart meters installed by ESB Networks comply with all necessary requirements and international standards. According to ESB, health authorities around the world, including the WHO, have assessed the scientific evidence and found no established health effects from smart meters, which use similar tech to mobile phones.