Recently there’s been a lot of talk with regards to installing smart meters in all homes. These so called smart meters are essentially advanced electric meters which have the ability to identify power consumption in far greater detail than the old regular meters. This information is then relayed back to the utilities company for monitoring purposes as well as billing, but the question remains, will these meters really make any difference as far as reducing power consumption is concerned. In order to shed some light on the topic, let’s take a look at exactly what one can and cannot expect from the new smart meters.

Traditional power meters regulate only the energy consumed, and not when it was used, meaning that it’s hard to match consumption with production. Smart meters are one of the more economical methods of measuring not only consumption, but times other information. This allows power companies to set different prices according to when the power is used. This will allow customers to save money by using power at nonpeak hours and avoiding paying too much for energy. It’s hoped that this will keep electricity prices down.

These smart meters are already in use in numerous countries such Italy, where the main energy supplier currently provides electricity to more than 27 million customers, all of which have smart meters. These meters which communicate via low voltage power lines make it possible for the electric company to monitor usage and unauthorized usage. Electric companies are now also able to turn power either on or of remotely.

With the implementation of smart meters well underway in countries such as Canada, Australia, New Zealand, Netherlands, and Scandinavia, it would appear as though it’s only a matter of time before they are implemented in the United Kingdom. In America it would seem that there are currently only certain jurisdictions which are currently moving towards smart meter technology, but the trend does look set to continue, given that more and more homeowners now believe they should have the choice with regards to buying their electricity at times when the price is reduced. Likewise, many homeowners feel they should have a choice as to when they should sell excess electricity to the electricity company, should they have any excess power.

Because smart meters rely largely on having the ability to communicate with a central command point, communication remains the biggest challenge. In order to overcome this obstacle, certain possible solutions have been proposed, such as making use of cellular networks and power line communications.

Just recently, the U.S. president openly called for 3,000 miles of transmission lines and a total of 40 million smart meters to be installed, making it the most ambitious upgrade the country’s electrical grid has seen in the last 40 years. In fact, many people believe that it will have such a significant influence on society, that it could be compared to the Internet. Furthermore, because this project promises to be able to make use of power which originates from clean power projects, it has received a great deal of support. Additionally, it is widely accepted that such a project will help to curb the need to for additional power production centers.

Considering that a smart meter can cost from 100 to $300.00 to install, it is by all accounts a significant investment, but then again, if you are able to choose when you wish to use electricity based on different prices during different times of the day, and then the savings you could make will surely make it all worthwhile. Judging from the amount of investment which has been made so far with regards to this technology, we may well see this become a reality sooner rather than later .

Author: Jerry Dyess has been in the Texas Commercial Energy business for the past 7 years. He has published many articles on Business Electric rates.