Black-outs, brown-outs, and equal pricing of electricity regardless of time or season are all money and energy wasters, and hit home-energy consumers the hardest. Smart meters are an easy solution to these problems. They measure electricity in real time and automate the process of sending usage data to the utility company. This allows utility companies to charge customers different prices based on the time of day and the season.
Traditional electricity meters measure total bulk consumption and have to be read every month by a utility company employee. The most common traditional electricity meter is the electromechanical meter, which records revolutions of a disc in the meter that turns in proportion to power usage. A register records the turns in terms of energy units. This register is then checked by a company employee to determine total usage. Utility companies have been replacing electromechanical meters with smart meters.
Many home consumers use power during non-peak hours, when utilities use less-expensive base-load power. With smart meters, consumers are charged less for these non-peak hours; companies and businesses that use peak-hour electricity will pay for the more expensive electricity generation that is required during these hours.
In addition to allowing for a fair pricing scheme for consumers, smart meters can act as a motivator for consumers to use less energy. In England, customers have stationed smart meters inside the home, displaying the energy usage of appliances as they power up. These smart meters offer a digital visualization of how much energy (and money) is being used in real time, encouraging Britons to eliminate wasted power.
While smart meters require a high initial cost, the gains of a smart power grid, made up of smart meters, overcome this hurdle. Consumers pay fair prices for their electricity and are motivated to use energy more wisely.
Antonio Olmos for The New York Times, Smart meter displaying real time energy usage
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