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Do Smart Meters Save Money On Electricity?

Do smart meters save money?   Tens of millions of people have had a smart meter installed in their homes, making them one of the largest and most consistent energy-saving trends in recent years. Many renters and property owners are considering installing one themselves, leaving more than a few scratching their heads over whether it’s the right thing to do!

With this in mind, the team at Everyday Loans is taking a moment out of the day to break down what smart meters are – answer the question “do smart meters save money?”

So, what is it?

Glad you asked! A smart meter simply refers to a new type of technology with which to read your electricity and gas meters at home. Its purpose is the exact same as the old meters you know and love; it’s just been updated a little.

One of the biggest gripes of renters and property owners is the bills surrounding energy and gas use. Namely, that the process of providing exact information to energy providers is difficult and can be unfairly expensive. In an attempt to rectify this, smart meters have entered the market with new functionality aimed at making life a little easier.

The key difference is obvious from the start: meter readings are regularly taken for you every half an hour – and they’re sent to your utility provider for you, too. That’s a real weight off the shoulders and one irritating task ticked off for good!

How does the tech work, exactly?

In the past, smart meter-style technology was around in a sense. Many new offerings aimed to provide the functionality that modern smart meters provide, but by using mobile networks. That was fine for most but unusable for some. Those in rural regions and those otherwise afflicted with poor mobile coverage were left stranded with the older meter technology. A new alternative was needed.

Modern smart meters now use a private, secure network that is dedicated to the transmitting of smart meter data. It’s a network that is owned independently, helping those without good mobile coverage use modern smart meters without worry.

There’s also been work undertaken by some savvy engineers in the industry to upgrade older meter models to have new smart meter functionality, minimising the need for the entire replacement of parts in UK homes. 

Do they work well?

The first question on any property user's mind is simple: Do smart meters save money and accurately report my energy usage? Fortunately, the answer to that one is a firm yes. The cost of not providing regular and consistent energy meter readings can be high and many people are guilty of forgetting to send in regular readings from a traditional meter. Smart meters, by comparison, don’t forget. They’ll always be there, reliably transmitting their information on our behalf.

That means you’ll be getting an accurate bill without the hassle of having to regularly open up that dusty corner of the house where the information is kept.

How do I know if my data is safe?

It’s a fair question; cybersecurity tops the headlines every year for a reason. Keeping your data secure is a worthy thing to be mindful of. In short, yes you’re fine! Smart meters are all licensed officially by the BEIS. Your data is in safe hands and can actually only be accessed by the supplier of your utilities and by the energy network. They’ll only ever use it to be sure that you’re all in order.

So, should I get a smart meter?

We think the answer is yes! It’s a simple thing to request or obtain and it doesn’t have to cost you a penny. But, you may ask, do smart meters save money? Well, keeping more up to date on your meter readings means you only pay for what you use and it helps avoid any unexpected surprises. It even helps the environment by ensuring you’re using as little energy as possible.

Better yet, it’s a real boon to the suppliers of energy as they’ll be able to gather data on its use, helping to refine their services and remain as environmentally-conscious as possible.

There’s also a small point to keep in mind for owners of electric vehicles; smart meters can help you save money while recharging their vehicle, as they are able to have their energy supplier charge different costs for energy at different times, such as cheaper energy when charging overnight.

Do Smart Meters Save Money?

Not directly. You will still consume the same amount of energy regardless of the type of meter you have. A smart meter can help to potentially reduce your monthly energy bill, however, by ensuring that you only pay for the energy you actually use.

This will help the average homeowner to save money simply because they would otherwise pay too much for the energy they use. Smart meters are valuable just for this reason, despite the fact that they don’t directly alter the amount of energy a homeowner will use.

A reasonable proposition

So, there’s really not much to lose. You get the benefit of peace of mind and you avoid one of the worst financial problems to ever have: unexpected costs. If it’s available to you, a smart meter is simply a straightforward and useful addition to the house that makes managing your property and living in it just a little bit easier.

If you are looking for more help with money, Everyday Loans may be the answer. Check out our loan options on this page of our website.

Posted in Budgeting on Mar 23, 2021.

Representative Example: Borrowing £3,000 over 24 months at an interest rate of 71.3% p.a. (fixed), you will repay 24 monthly payments of £238 per month. Interest Payable £2,706. Total Repayable £5,706. Representative 99.9% APR.

Andrew Wayland - CMO

Andrew WaylandAndrew helped set up Everyday Loans back in 2006 acting as the driving force behind the sales and marketing strategy for generating business to this day. Prior to his position with Everyday Loans he worked as the Head of Commercial Development for a tech start up and ran his own PR agency for around 5 years.