Smart meters, also known as advanced or interval meters, are the next generation digital electricity meters. They provide more detailed tracking of energy usage and enable two-way communication between your home and utility. Smart meters are being rolled out across Australia, replacing old analog meters. But can you get one installed in your home for free? Here’s what you need to know.
What are smart meters?
Smart meters differ from traditional spinning dial analog meters in a few key ways:
- They digitally measure electricity usage in regular intervals – usually every 30 minutes.
- This frequent sampling provides near real-time visibility into your household energy consumption rather than just cumulative totals.
- The usage data is securely transmitted to your energy provider over wireless networks using cellular, RF mesh or Wi-Fi technology.
- Data can then be accessed by you through online portals or in-home displays provided by the energy retailer.
Key benefits
Smart meters unlock various benefits both for consumers and energy providers:
- More accurate bills based on actual usage rather than estimates
- Ability to track energy usage patterns and trends
- Access to new time-based pricing and savings opportunities
- Faster outage identification and response
- Remote meter reading, connections and disconnections
- Improved grid management and planning for utilities
Smart meter rollout
To unlock these benefits, the Australian government has mandated a rollout of smart meters across the country by 2024. It requires all homes and small businesses to upgrade to smart meter technology.
The upgrades have already been mostly completed in states like Victoria, SA and NSW. Other states are now commencing their mandated deployment programs.
Eventually all analog meters are planned to be replaced with smart versions nationally. However, the rules vary across states on who pays for the new devices.
Who pays for smart meters?
There are two main approaches that determine who funds the upfront cost of purchasing and installing smart meters:
1. Mandated rollouts
In states like Victoria and SA with mandated government rollouts, energy distribution companies were required to replace old meters.
The costs were spread across all consumers through higher network charges over several years. Customers have indirectly paid for the meters through slightly increased electricity bills.
But the meters were installed at no explicit charge. This applied even when replacing working analog devices before their end of useful life.
2. New and replacement meter policy
Other states like NSW, Queensland and Western Australia have taken a “new and replacement” approach.
Energy retailers are not required to proactively replace working analog meters. But smart meters must be installed when:
- A new electricity connection is set up
- An old meter needs replacement after failing or malfunctioning
- A site changes energy providers
The costs are borne by the energy retailer and generally passed on to the specific consumer. Some retailers may charge an upfront fee for the new meter installation.
This means unless your old meter needs replacing, you may have to pay to have a smart meter proactively installed even during the mandated rollout period.
Can I get it for free?
With smart meter rollout regulations varying in each state, the chances of getting one installed in your home for free depend on your location and individual circumstances:
Mandated rollout states
If your area has already had blanket replacements, you likely received a smart meter at no explicit charge. Even if your analog meter was still functional and not at the end of its service life.
For the remaining neighborhoods yet to be modernized, you can expect a free upgrade when the distribution company eventually rolls through as part of their mandated schedule.
New meter policy states
If your analog meter is functioning normally, you may need to pay if you want a smart meter proactively installed. Your energy retailer may charge an upfront fee for purchasing and swapping the old device before its due replacement.
However, some retailers are willing to provide discounts or free installation to win new customers even during the transition period. So shopping around could be worthwhile.
When your old meter fails or needs replacing at the end of its service life, your energy provider will install a smart meter for no charge as required by regulations.
Other factors
Even in mandated rollout areas, some exceptions may apply. For example, rural regions with sparse populations may involve higher installation costs. These could be passed on to consumers.
Likewise, modified meter panels or electrical wiring that don’t comply with standards may need remediation adding potential costs. But your energy provider can best clarify if any charges apply.
Weighing your options
If faced with paying for a new smart meter installation before your analog meter needs replacing, consider:
- How long until your old meter requires replacement? Retailers typically replace analog meters every 10-15 years.
- New time-based pricing enabled by smart meters could provide savings that offset installation costs.
- Retailers usually allow paying off the upfront fee in instalments added onto your bill. This avoids large one-time costs.
- Shopping around for discounts and special deals, especially if changing energy providers.
- Future capabilities like managing electric vehicle charging or solar integration may be worth investing early in a smart meter.
Free with solar?
Some consumers wonder if they install rooftop solar or home batteries whether they can get a smart meter included for free as part of the deal.
However, a solar inverter or home energy storage system is not typically sufficient justification for a retailer to provide a free smart meter.
These technologies will work fine with your existing analog meter. Smart meters enable added visibility into self-consumption and power exports. But their capabilities are not fundamentally necessary for solar or batteries to function.
Retailers are obligated to install smart meters as older analog versions get replaced at each site. But unless your analog meter specifically needs replacing, you may need to pay if you want a smart meter proactively just for added solar or battery insights and control.
That said, some solar and storage vendors may offer packages with discounted smart meters or installation bundles. So shop around when exploring your options.
Temporary basic meters
In rare cases, an energy retailer may install a temporary lower-function non-smart digital meter. This could occur if they are awaiting delivery of smart meters to an area experiencing shortage.
But this basic meter will eventually be replaced with a full smart meter complying with national standards at no added cost when stock is available. The stopgap option doesn’t waive your right to the mandated technology upgrade.
