A typical household saves between £20 and £80 a year after installing a smart meter
Smart meters show you how much energy you use in real time. The average annual saving is roughly £40, according to 2025–26 data from the Department for Energy Security and Net Zero (DESNZ) (DESNZ, 2026). Savings come from reduced energy use, not from the meter itself, the meter simply shows real-time usage.
Households on time-of-use tariffs (Economy 7, Economy 10, or Agile Octopus) can save more by shifting use to cheaper off-peak hours. Ofgem says these tariffs can add up to £100 a year in savings for households that shift at least half of their electricity use to off-peak times (Ofgem, 2026). The saving range of £20 to £80 comes from DESNZ’s Smart Meter Energy Savings release, updated March 2026.
A smart meter costs you nothing to install in England, Scotland, and Wales
Installation is free for all domestic customers. The cost is paid for through the energy network charges in your bill. It is already factored into your standing charge, you cannot opt out of paying it.
Smart meters are rolled out under the government’s Smart Metering Implementation Programme. Your energy supplier must offer you a smart meter at no extra cost. If you refuse, you may still pay the network charge that funds the rollout (GOV.UK, 2026). Ofgem confirms the installation is free and the cost is spread across all customers (Ofgem, 2026).
Smart meters show your real-time energy use in pounds and pence
The in-home display (IHD) updates every 10 seconds with current electricity and gas consumption. You can see what each appliance costs to run, a 2 kW kettle boiling for 3 minutes costs roughly 1.2p. The IHD shows your daily, weekly, and monthly spending and compares it to the same period last year.
The Energy Saving Trust says the real-time display helps people spot waste they would otherwise miss (Energy Saving Trust, 2026). Smart Energy GB adds that the IHD is the key tool for changing behaviour, because you see the cost immediately (Smart Energy GB, 2026).
Quick numbers, smart meter costs, savings, and payback at a glance
| Item | Figure |
|---|---|
| Installation cost to you | £0 (free) |
| Average annual saving (DESNZ, 2026) | £20–£80 |
| Typical payback period on your time | Immediate, no upfront cost |
| Number of smart meters in UK homes (DESNZ, March 2026) | 33.2 million |
| Percentage of UK households with one | 63% |
| Average annual electricity bill (Ofgem price cap, Jan–Mar 2026) | £1,736 |
| Average annual gas bill (Ofgem price cap, Jan–Mar 2026) | £1,750 |
| Potential extra saving from time-of-use tariff | Up to £100/year |
Source for meter count and percentage: DESNZ Smart Meter Statistics quarterly release, March 2026 (DESNZ, 2026). Source for price cap figures: Ofgem Price Cap announcement, November 2025 (covers Jan–Mar 2026) (Ofgem, 2025).
A smart meter sends automatic readings to your supplier so you never need to submit them
Readings are sent every 30 minutes via the secure national communications network (DCC). You get accurate bills, no estimated readings, which stops overpaying or underpaying. You can still read your meter manually if you prefer; the smart function is optional.
Smart Energy GB explains that automatic readings remove the risk of estimated bills and the hassle of submitting meter readings (Smart Energy GB, 2026). Ofgem confirms that smart meters end estimated billing for most households (Ofgem, 2026).
You need an MCS-certified installer if you pair a smart meter with solar panels or a heat pump
Smart meters alone do not require certification, your energy supplier installs them. If you add solar panels, battery storage, or a heat pump, the installer must be MCS-certified to qualify for the Smart Export Guarantee (SEG) or Boiler Upgrade Scheme.
For solar exports, you need a smart meter that records export readings (SMETS2). The Microgeneration Certification Scheme (MCS) certifies installers for renewable technologies (MCS, 2026). Ofgem’s SEG guidance says you need an export-capable smart meter to receive payments for electricity you send to the grid (Ofgem, 2026). The Boiler Upgrade Scheme also requires MCS certification for heat pump installations (GOV.UK, 2026). How to choose a heat pump installer
A smart meter does not save energy by itself, you have to change your habits to see savings
The meter is a tool, not a passive saver. The saving comes from seeing waste and turning things off. Typical household waste: leaving appliances on standby costs about £55 a year, according to Energy Saving Trust estimates (Energy Saving Trust, 2026).
The IHD helps you spot which appliances use most. A 2 kW heater running 4 hours a day costs about £1.40 a day. DESNZ’s behavioural impact study found that households with smart meters reduced their electricity use by an average of 2–3% in the first year (DESNZ, 2025). The savings come from turning things off, not from the meter itself.
The direct answer to “should I get a smart meter”, yes, because it’s free and helps you cut waste
Installation costs you nothing and the meter itself is free. Average savings of £40 a year are modest but real, and you can increase them by switching to a time-of-use tariff. The only downside: if you switch suppliers, your smart meter might temporarily lose smart functions (SMETS1 meters). SMETS2 meters are fully interoperable and work with any supplier.
Ofgem’s compatibility guidance confirms that SMETS2 meters remain smart when you switch (Ofgem, 2026). Smart Energy GB explains that most meters installed since 2018 are SMETS2 (Smart Energy GB, 2026). If you have an older SMETS1 meter, your supplier can upgrade it remotely. Understanding SMETS1 and SMETS2 smart meters
