Smart meters:
savings, benefits and how to get one free
Over 36 million UK smart meters have been installed. They are free, eliminate estimated bills, and are the gateway to cheaper time-of-use tariffs. Here is everything you need to know.
Smart meters automatically send usage readings to your supplier, eliminating estimated bills. They save the average household £60 to £90 per year from usage visibility alone, and unlock access to cheaper time-of-use tariffs worth up to £500 per year in additional savings for households that can shift usage to off-peak periods. Installation is free. Contact your supplier to request one.
How much do smart meters actually save?
From real-time usage visibility
Seeing your energy use in pounds and pence via the in-home display (IHD) or app helps most households cut consumption by 3 to 5%. On a typical bill of £1,641 that is £49 to £82 per year. The saving comes from identifying and changing habits, not from the meter itself.
From time-of-use tariffs
Smart meters are required to access EV overnight tariffs, Economy 7, and other time-of-use plans that offer cheap off-peak rates. EV drivers charging overnight can save £400 to £500 per year. Non-EV households can also benefit by shifting appliance use to off-peak periods.
No more estimated bills
Smart meters send automatic readings to your supplier. You are billed for exactly what you use. No more estimated bills that over or undercharge, no manual meter readings, and no large catch-up bills caused by inaccurate estimates.
Estimated national saving by 2045
Ofgem estimates that half-hourly smart meter data will save UK consumers £1.6 billion to £4.5 billion on energy bills by 2045 by enabling a more efficient grid. Smart meters are the foundation of the UK's move to smarter, cheaper energy.
Saving figures from The Home Energy Hub and Smart Energy GB research. £1.6bn to £4.5bn national saving estimate from Ofgem. Last updated May 2026.
What is the difference between SMETS1 and SMETS2?
| Feature | SMETS1 (first generation) | SMETS2 (second generation) |
|---|---|---|
| Installed | 2012 to 2018 | 2018 onwards (all new installs in 2026) |
| When you switch supplier | Often goes "dumb" and stops sending readings | Continues working normally |
| Network | Tied to installing supplier | National DCC network, supplier-independent |
| Time-of-use tariff access | Limited | Full access to all time-of-use tariffs |
| Should you upgrade? | Yes, especially if yours went dumb after switching | Already the best option |
If you have a SMETS1 meter that stopped sending readings after you switched supplier, contact your current supplier and request a free upgrade to SMETS2. Around 12 million SMETS1 meters were installed in the early rollout period. Many have since been remotely upgraded to work on the DCC network, but if yours still shows estimated bills, an upgrade is worth requesting.
You are now entitled to £40 automatic compensation for smart meter failures
From February 2026, Ofgem's new Guaranteed Standards of Performance require energy suppliers to pay £40 automatic compensation when: a customer waits more than six weeks for a smart meter installation appointment; an installation appointment fails due to a fault within the supplier's control; or a customer reports a problem with their smart meter and the supplier fails to provide a resolution plan within five working days. If you are owed compensation and have not received it, contact your supplier in writing and reference Ofgem's Guaranteed Standards of Performance.
Source: Ofgem Guaranteed Standards of Performance, effective 23 February 2026. Last updated May 2026.
How to get a smart meter installed
Contact your energy supplier and request a smart meter installation. Installation is always free. Your supplier must offer you one and is required by Ofgem to work toward installing smart meters in all homes by 2030. If you are currently receiving estimated bills and do not have a smart meter, requesting one is the single most effective step to get accurate billing.
When your supplier books an installation appointment, a trained engineer will typically spend around an hour fitting both a gas and electricity smart meter, plus an in-home display (IHD) that shows your real-time usage in pounds and pence. You will need to be at home during the appointment. Your energy supply will be briefly interrupted during the switch but will resume before the engineer leaves.
If you cannot access time-of-use tariffs such as an EV overnight tariff, check with your supplier whether you need a SMETS2 upgrade first. See our EV energy tariff guide for more on which tariffs require a smart meter.
Got a smart meter? Now find a better tariff
Smart meters unlock access to time-of-use tariffs. Compare deals available for your postcode including off-peak options.
Questions people ask
Yes, on average £60 to £90 per year from usage visibility alone. The meter itself does not save money but gives you the information to change habits. They also unlock access to time-of-use tariffs that can save a further £200 to £500 per year for households that can shift usage to off-peak periods.
Contact your energy supplier and request a free installation. Your supplier must offer smart meters to all customers and is working toward full coverage by 2030. From February 2026, if you wait more than six weeks for an appointment you are entitled to £40 automatic compensation.
SMETS1 meters were tied to the installing supplier and often stopped sending readings when you switched. SMETS2 meters use the national DCC network and keep working after a switch. All new installations in 2026 are SMETS2. If your SMETS1 meter went dumb after switching, request a free SMETS2 upgrade from your current supplier.
Yes. You cannot be forced to accept a smart meter. Your supplier can offer one but installation is not compulsory. However, some tariffs including EV overnight tariffs require a smart meter to access off-peak rates.
Related energy guides
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