What is a Smart Meter and Do I Need One?
Smart meters are being rolled out across the UK but many households still aren’t sure what they do, how they work or whether they’re worth having. Here’s everything you need to know.
In this guide
What is a smart meter?
A smart meter is a new type of gas and electricity meter that automatically sends your usage readings directly to your energy supplier. Unlike traditional meters, you don’t need to read them yourself or estimate your usage.
Smart meters come with an In-Home Display (IHD) — a small screen that sits in your home and shows you how much energy you’re using in real time, and how much it’s costing you.
💡 Did you know?
The UK government has set a target to install smart meters in all homes across Great Britain. Your energy supplier is required to offer you one — but you are not legally required to accept it.
How does a smart meter work?
A smart meter measures your gas and electricity usage just like a traditional meter. The difference is that it sends readings automatically to your supplier via a secure wireless network called the Smart Metering System (SMS) — without you having to do anything.
The meter records your usage every 30 minutes and transmits the data to your supplier. This means your bills are always based on actual usage rather than estimates.
Your In-Home Display connects to the smart meter via a home area network and updates in near real time — showing you your current usage in kilowatt hours (kWh) and in pounds and pence.
Benefits of a smart meter
Accurate bills — no more estimates
Your supplier bills you for exactly what you use. No more estimated bills, no more surprise catch-up charges, and no more submitting meter readings manually.
See your usage in real time
Your In-Home Display shows you exactly how much energy you’re using right now and what it’s costing per hour, per day and per week. This awareness alone helps most households reduce their usage.
Reduce your energy usage
Studies show households with smart meters reduce their energy consumption by an average of 3% — just by being more aware of what they’re using. Small changes like turning off standby appliances become much easier when you can see the impact immediately.
Access smart tariffs
Some of the best energy tariffs — including Octopus Energy’s popular time-of-use tariffs — are only available to households with a smart meter. These tariffs offer cheaper rates at off-peak times, which can save significant money for flexible households.
It’s completely free
Smart meters are installed at no cost to you. Your supplier covers the cost of the meter and the installation.
Are there any downsides?
Smart meters are generally a positive upgrade but there are a few things worth being aware of:
⚠️ First generation (SMETS1) meters — older smart meters sometimes lose their smart functionality when you switch supplier. If you have a SMETS1 meter, ask your new supplier if it will work with their systems before switching.
⚠️ Signal issues — in some rural or remote areas the smart metering network signal can be weak, meaning your meter can’t always transmit readings automatically.
⚠️ In-Home Display accuracy — the display shows near real time data but there can be a short lag. It is an indicator rather than a precise live reading.
Do I need a smart meter?
You are not legally required to have a smart meter — it is entirely your choice. Your supplier must offer you one but cannot force you to accept the installation.
That said, for most households getting a smart meter is a sensible move. The benefits — accurate billing, real time usage data and access to smarter tariffs — outweigh the downsides for the majority of homes.
Get a smart meter if:
✓ You want accurate bills with no estimated charges
✓ You want to monitor and reduce your energy usage
✓ You want access to smart tariffs like time-of-use deals
✓ You have an electric vehicle or solar panels
You might want to wait if:
✗ You live in a remote area with poor signal coverage
✗ You are planning to switch supplier soon and want to check compatibility first
Compare smart tariffs for your postcode
Many of the best smart tariffs are only available with a smart meter. Compare deals now.
Compare energy deals →How to get a smart meter
Getting a smart meter is straightforward and free:
Contact your energy supplier
Log in to your account online or call your supplier and request a smart meter installation. Most suppliers now offer online booking.
Book an installation appointment
A trained engineer will visit your home to install the meter. The installation typically takes 1-2 hours and you’ll need to be home during the appointment.
Start using your In-Home Display
Once installed, your In-Home Display will start showing your energy usage straight away. Take some time to explore the different views — daily, weekly and monthly usage breakdowns are particularly useful.
Smart meters and energy tariffs
One of the biggest advantages of having a smart meter is access to smart energy tariffs that are not available to households with traditional meters.
The most popular smart tariffs include:
⚡ Time-of-use tariffs — cheaper electricity at off-peak times (typically overnight). Great for EV owners who can charge at night.
🌱 Agile tariffs — prices that change every 30 minutes based on grid demand. Can be very cheap or even negative during periods of high renewable generation.
🏠 Export tariffs — if you have solar panels, a smart meter allows your supplier to pay you for the excess electricity you export back to the grid.
If you’re considering switching to one of these smart tariffs, compare your options first to make sure you’re getting the best deal available in your area.
Related guides
How to reduce your energy bills UK 2026 → How to switch energy supplier UK 2026 → Best energy suppliers UK 2026 →Ready to find a smarter energy deal?
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Compare energy deals →Written by the FastSwitch team · Last updated April 2026
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