In all probability you will have heard talk of new smart meters being installed in homes, which have the ability to relay information back to the electrical company with regards to power consumption. Unlike the old regular meters, these new smart meters can identify power consumption in detail, and it is hoped that this may result in the average person using less electricity. Let’s go ahead and take a look at what the smart meters really mean:

Unlike the old traditional meters which were only able to track the amount of energy consumed, the new smart meters will be able to measure not only how much electricity is being used, but also when it is used. It is hoped that this will allow electricity companies to set different rates according to the times when the most energy is being consumed and as such, it may help to encourage people to use electricity during off peak hours in order to take advantage of reduced rates.

Italy’s dominant utility is currently serving over twenty-seven million customers with fully electronic smart meters capable of measuring and managing power, and which have a software controlled disconnect switch. They’re solid state, and communicate via low voltage power lines. These systems offer more features to utilities, allowing remote changing of billing plans, the ability to detect outages and unauthorized use, and the ability to turn power on and off remotely.

Smart meters have also been implemented in Turkey, Canada, New Zealand, the Netherlands, Scandinavia and Australia. In the United states, a number of jurisdictions are actively pursuing smart meter technology, such as Northen California, Los Angeles, and Austin, Texas. Implementation is imminent in the UK and in Ireland. Energy experts have noted that it’s important for meters to allow homeowners to make choices such as buying their power when it’s cheapest and selling wind turbine and solar panel electricity to utilities when they choose to.

The biggest problem with smart meter technologies is generally communication, since each meter must be able to securely and reliably communicate the information to a central point. This can be tricky, given the range of locations and environments in which these meters are located. Some solutions that have been proposed include cellular networks, radio, and power line communications.

Interestingly enough, the U.S. president has just recently called for 40 million smart meters to be installed, including 3,000 miles of transmission lines. As many have pointed out, this will be the first real upgrade to America’s electrical grid in more than 40 years. Many also believe that such changes will be so significant; it could be compared to the Internet, the telephone, and the country’s railroad. Of course it should be mentioned that one of the main reasons this project is being supported, is because it promises to be able to utilize electricity which has been generated from renewable resources. Additionally, it is also believed that this project will effectively reduce the need for any new power production facilities.

Smart meters can cost anywhere from a hundred to three hundred dollars to install – each. The amount depends on the quality of the smart meter in question, but it will be a significant investment. However, venture capitalists have been investing in this technology recently, so it may be possible. Soon, you could be choosing when you use power based on the price, and possibly saving money and energy.

About the author: Jerry Dyess has been specializing in the Commercial Energy market segment for many years and written articles on Business Electric prices.