Updated on November 5, 2025
You’re shopping for a solar system and researching every facet of what you need to do to maximise the efficiency of your system. Maybe you stumbled across the term “smart meter” or maybe a solar salesperson has mentioned it to you. Once you install your solar system, you’re going to need to get one.
But what is it? Why do you need it? Who is going to do this for you?
At PSC Energy, we’re experts in the complexities of solar installations, especially when it comes to understanding the components that help your system perform. Smart meters are a new technology that works to accurately determine exactly how much electricity you import or export to the grid. The more you know about your intake and output, the better informed you are to make decisions (about energy) that will save you money.
In this article, you will learn:
- What is a Smart Meter?
- Who Installs a Smart Meter and Why?
- A Brief Aside About Battery Storage and Smart Meters
- Smart Meters and Solar
- FAQ: Smart Meters
By the end of this article, you will be an expert in all things smart meter-related.
What is a Smart Meter?
A smart meter is a device with a digital communication device that measures when you use electricity and how much you use. It records your energy in at least 30-minute intervals (but 15-minute intervals are more common).
These new meters have significant benefits. They are 100% digital, ensuring constant accuracy.
They are equipped with a SIM card and are connected to the internet so you can get data live (give or take 15 minutes). There are huge benefits to that when it comes to tracking energy and keeping your energy retailer accountable. Smart meters eliminate any risk of what we call an “estimate bill read.”
Back in the day with analogue meters, folks would occasionally get a huge bill. If you looked closely at the bill to find a little E next to the amount billed. That E stood for “estimate”: they just estimated what you used and said, “We’ll catch up on the next read in three months’ time.”
Many homes used to get estimated reads. That was not fair. You could open a bill that was double your last bill. People cut back and lived in discomfort until the next quarter because they feared the next bill.
Smart meters fix that problem. They give you real, live, and accurate readings. You no longer get estimated bills.
Key benefits of smart meters:
- Real-time data that matches your actual use.
- Accurate bills instead of rough estimates.
- No surprises at the end of the quarter.
Remote reading is a big advantage too. The meter’s built-in SIM lets your retailer read usage without a visit. When you switch to an energy retailer, you can use their app to track your daily consumption in 15-minute intervals. It feels like the private smart meter you get with a solar install.
What you can do in retailer apps:
- See your daily energy use in 15-minute blocks.
- Spot usage spikes and change habits fast.
- Check yesterday’s usage without waiting for a bill.
The Enphase Enlighten portal, the Tesla app, and the SigenStor app take this further. They show live readings and let you download detailed data. They also show how your system trades energy with the grid through feed-in tariffs.
These solar apps add:
- Live system and battery status.
- Downloadable reports for deeper analysis.
- Clear views of exports, imports, and feed-in earnings.
- 15-minute consumption tracking for precise tuning.
The ability to monitor in 15-minute intervals is a powerful tool when you invest in solar. Consumption monitoring now comes standard with Enphase systems. Skipping it is like buying a car without a speedometer. It makes no sense.
If you’re interested in learning more about consumption monitoring, you might want to check out the following article titled, What is Consumption Monitoring?
Who Installs a Smart Meter and Why?
Energy retailers install smart meters in each distributor’s region in New South Wales. Your energy retailer is who bills you for your electricity and is different from your energy distributor who delivers the energy to your residence while maintaining the grid.
If you’re interested in learning more about energy retailers and energy distributors, you might want to check out the following article titled, Energy Distributors vs. Energy Retailers: What’s the Difference?
Different plans with the same energy retailer may have different costs depending on whether they’re with Endeavour Energy, Ausgrid, or Essential Energy. Endeavour Energy is often the cheapest, with favourable and efficient infrastructure management, resulting in lower costs. Essential Energy faces higher costs due to fewer clients in rural areas.
In contrast, Ausgrid, located closer to the city, has slightly higher costs. This is because of advanced time-of-use metering, where rates vary throughout the day. Time-of-use metering charges different rates depending on the time of day when you are using electricity.
A smart meter eliminates the need for a separate meter to record off-peak electricity for heating your hot water during the night.
With a smart meter, your entire home, including hot water, can be on a single meter. This allows for dynamic pricing based on live market conditions.
For example, during peak events like scorching days between 5:00 and 8:00 in the evening, when solar energy is limited, the grid may experience high demand, leading to increased wholesale energy costs.
A smart meter enables real-time adjustments to your energy price, reflecting the current demand on the grid. It’s a significant advancement in energy management.
If you’re interested in learning a bit more about how to set up and use the Tesla App, you might want to check out the following article titled, How to Set Up and Use the Tesla Powerwall App.
A Brief Aside About Solar Battery Storage and Smart Meters
Time-of-use plans can benefit those with battery storage.
Batteries, like the Tesla Powerwall 3, are becoming smarter. They adapt to time-of-use pricing, allowing programming based on different energy costs throughout the day.
This ties into the concept of virtual power plants (VPPs). In a virtual power plant, batteries understand the value of energy (because they are programmed to). For instance, an energy retailer might offer $0.50 per kWh for energy provided between 5:00 to 8:00 at night.
This is especially common in summer when – as we mentioned – the grid is strained from everyone using their air conditioner. In such cases, it’s worthwhile for the battery to charge from the grid during the day at a lower cost and discharge between 5:00 to 8:00 at night for a higher feed-in tariff.
With batteries and your solar system’s consumption monitoring app, you can instruct your batteries not to import energy from the grid during these peak hours.
This avoids hefty fines for excessive energy use, easing the strain on the grid. People with batteries can maintain their lifestyles while avoiding high costs.
There’s a lot of potential for what a VPP can do for those who have a solar battery. The possibilities for energy management within a community are there.
For instance, if your neighbour has excess energy stored in their battery, you could trade it and avoid fines while enhancing the overall efficiency of both systems. This concept is new, exciting, and has the potential to amplify your return on investment. It’s a developing field, but the prospects are promising.
These systems are evolving, becoming more intelligent and adaptable to optimise energy consumption and savings. This is all made possible thanks to the smart meter.
If you’re interested in learning a bit more about VPPs, you might want to check out the following article titled, Should You Join a VPP? A Guide for NSW, Australia, 2025.
Smart Meters and Solar
Smart meters are here to stay, regardless of whether you prefer them or not. Energy retailers are replacing analogue meters for anyone who wants one (and if you’re getting solar installed, it’s required).
Many retailers offer free smart meter installation, included in your contract if your current meter isn’t smart. If you have an analogue meter and it stops working, your retailer must replace it with a smart meter.
If your current meter can’t handle two-way electricity, coordinate with your retailer for a new smart meter. Keep your solar panels inactive until the new meter is installed, addressing any safety concerns raised by your retailer.
Staying connected matters. A solar system that is offline cannot monitor or respond to grid signals. It cannot match grid conditions with your home’s needs. Smart meters also measure surplus solar that you send back to the grid, so you can earn a feed-in tariff.
Why internet connection and smart meters matter:
- Track exports that qualify for feed-in tariffs.
- See how grid conditions affect your solar and usage.
- Keep your system aligned with your household needs.
Renewables are growing fast. As they exceed 100% of demand at times, wholesale prices can turn negative. Some retailers, like Ausgrid or Origin, may refuse excess energy in the next five years. They may even charge you for exporting it.
Possible impacts to you:
- Lower or zero feed-in tariffs during oversupply.
- Export limits or penalties when prices go negative.
- More value in using energy on site.
Solar batteries and VPPs can help. You can store excess energy when prices go negative. You can sell or use that energy during peak times when prices rise. This can speed up your return on investment.
Ways to respond:
- Charge the battery when prices are low or from solar energy.
- Discharge to your home or the grid when prices peak.
- Consider a VPP if it suits your goals and tariff.
At PSC Energy, we choose technology that we trust. We install the gear we believe is best. Smarter inverters with detailed consumption monitoring have a clear advantage over basic systems that lack that visibility.
Why energy use monitoring helps:
- They work with smart meters rather than against them.
- They stay flexible, smart, and online.
- They give panel-level control and insight.
If you’re interested in learning a bit more about the VPP portion of the battery rebate, you might want to check out the following article titled, NSW Battery VPP Rebate Explained: What You Need to Know.
Getting to the Heart of the Meter
Now you know not only what a smart meter is, but you also understand how they operate to serve your best interest. Especially if you’re installing solar.
Energy retailers are installing them state-wide and solar system owners are maximising their savings by staying on top of energy pricing and production. With a solar battery, you have the potential to save even more and exert more control over how you use your electricity.
At PSC Energy, we want to do our part to help Australia reach Net Zero by 2050. We also want you to get the most bang for your buck with your solar system. Understanding the complexities of smart meters, energy retailers, and how the electrical grid works will serve to empower you as a consumer.
If you’re interested in learning a little bit more about how your electricity needs affect your solar purchase, you might want to check out the following article titled, How Much Solar Do You Need?
FAQ: Smart Meters
What is a smart meter?
A smart meter is a digital electricity meter. It measures how much power you use and when you use it. It logs data in 15-minute or 30-minute intervals and sends it to your energy retailer.
How does a smart meter work with solar panels?
A smart meter measures energy you import from the grid and energy you export to the grid. It enables two-way metering so you can earn a feed-in tariff for surplus solar.
Do I need a smart meter if I install solar panels?
Yes. If you add solar, you need a meter that can measure exports. Most energy retailers replace old analogue meters with smart meters for solar customers.
Who installs my smart meter in NSW?
Your energy retailer arranges the smart meter installation. The retailer bills you. The distributor owns and maintains the poles and wires.
What is the difference between an energy retailer and a distributor?
The retailer sells you electricity plans and sends bills. The distributor owns the local network and delivers power to your home. In NSW the main distributors are Endeavour Energy, Ausgrid, and Essential Energy.
Will a smart meter stop “estimated bills”?
Yes. Smart meters send actual readings remotely. You no longer rely on estimated reads that can cause surprise bills.
Does a smart meter need the internet?
It uses a built-in SIM or similar communications module. It sends data over mobile networks to your retailer. You do not need to connect it to your Wi-Fi.
How is a smart meter different from solar consumption monitoring?
Consumption monitoring from your inverter or microinverters shows live, panel-level and household data. It helps you manage appliances and batteries in real time. The smart meter shows metering data for billing and grid transactions.
Do I still need consumption monitoring if I have a smart meter?
Yes if you want deeper control. The smart meter is for billing accuracy. Consumption monitoring helps you tune usage, diagnose issues, and optimise savings.
What is time-of-use pricing and how does the smart meter help?
Time-of-use pricing charges different rates at different times. The smart meter timestamps your usage so your retailer can bill peak, shoulder, and off-peak rates correctly.
Can a smart meter replace my off-peak hot water meter?
Often yes. A smart meter can manage controlled-load or time-of-use schedules on a single device. Your retailer will advise plan and setup options.
What is negative pricing and why does it matter?
When renewables exceed demand, wholesale prices can go negative. A smart meter enables plans that respond to these events. A battery and smart controls can help you avoid exporting at negative prices.
Will a smart meter make my solar panels turn off?
No. The meter does not control your solar production. It measures imports and exports. Your inverter controls generation and exports within grid rules.
Will a smart meter lower my bills?
It improves billing accuracy and enables plans that can save money, like time-of-use or dynamic pricing. Real savings come from how you shift usage, size your system, and use a battery.
Does a smart meter cost money?
Many retailers include smart meter upgrades at no extra cost when you switch or install solar. Check your plan and any fees before you proceed.
How long does smart meter installation take?
The on-site swap is usually brief. Timing depends on your retailer’s schedule and access to the meter board. Your power may go off for a short period during the changeover.
What happens if the smart meter fails?
Contact your retailer. They arrange testing or replacement. Your billing will use stored data or verified reads once the issue is fixed.
