Smart metering systems (smart meters) provide precise data on energy consumption and enable the efficient control and optimised use of energy. They play a vital role in reducing energy demand and advancing the integration of renewable energy. Thus, they are not merely technical gadgets but essential building blocks for a flexible, transparent and sustainable energy system in companies.
The German Bundestag and Bundesrat have revised the Act to Restart the Digitalisation of the Energy Transition (GNDEW), which was passed in May 2023. As part of this, the Metering Point Operation Act (MsbG)was simplified in order to accelerate the installation and operation of smart metering systems. The aim is to equip all consumers with modern or smart electricity meters by 2032.
These intelligent measuring devices, also known as smart meters, enable consumers to record their electricity consumption or feed-in, for example from photovoltaic systems, in detail and analyse it in real time. Based on the continuous collection of this data, it is possible to utilise the energy required more efficiently.
At the same time, consumers benefit from dynamic tariffs: the electricity price changes depending on the time of day and grid utilisation. This makes it possible, for example, to strategically plan and automatically control the use of energy in companies. For example, energy-intensive consumption facilities could be used predominantly at times when electricity prices are low in order to reduce electricity costs.
The installation of smart meters also improves the integration of controllable consumers such as electric cars, heat pumps or industrial processes into the electricity grid. Smart metering systems for electricity thus facilitate the use of renewable energies and help to increase grid stability thanks to their ability to communicate with the grid operator.
The installation of smart metering systems (iMSys) is mandatory under the Metering Point Operation Act for electricity consumers with an annual consumption of more than 6,000 kilowatt-hours and for electricity producers who feed more than 7 kilowatts of power into the grid via photovoltaic systems or combined heat and power plants (CHP). This installation obligation mainly applies to businesses as well as large households or households with heat pumps or electric vehicles. Below this threshold, there is currently no obligation to install an iMSys. In this case, the law refers to "basic metering point operators", who are permitted to install a simple modern meter device.
Smart metering systems initially consist of three components:
It is the combination of these three elements that makes the electricity meter intelligent. The digital measuring device precisely measures electricity consumption. The communication module transmits the data regularly and securely to the metering point operator, the grid operator and, if necessary, to the energy supplier. The gateway controls the secure data transfer, which fulfils the particularly high data protection and IT security requirements of the Federal Network Agency.
While smart electricity meters record and transmit measurement data independently, purely electronic meters or so-called modern metering systems can only display the corresponding values digitally. These comparatively simple systems are mainly intended for households with low electricity consumption. For commercial customers, industrial facilities and PV systems with a capacity above 7 kW, however, smart electricity meters are intended.
The measurement technology itself provides various types of measurements. In addition to pure consumption measurement, smart electricity meters also provide information about feed-ins into the electricity grid, load profiles, reactive power or grid utilisation in real time. Each type of measurement provides different insights for metering point operators, grid operators or consumers. Commercial consumers, for example, obtain a comprehensive picture of their energy behaviourin order to derive measures for energy efficiency and automation of operating processes on this basis.
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One of the advantages of smart electricity meters is the switch from fixed to dynamic electricity prices. However, in order to make a contribution to the energy transition and save costs when purchasing electricity, companies must first invest in the installation of smart electricity meters. For many companies, especially small and medium-sized enterprises, the first question is therefore the cost.
Legislation stipulates annual upper limits for installation and operation. If a smart metering system is installed as an option, the maximum cost is 30 euros per year. In the case of mandatory installation, the price caps depend on the annual consumption (in kWh) and electricity generation (in kW) and range between 40 and 140 euros. If the actual operating costs are higher, these are partially offset by the grid operators. In addition, smart metering systems are also subsidised by the Federal Ministry of Economics and Climate Protection (BMWK) in order to drive forward the energy transition.
Although smart metering systems are legally mandatory for companies - especially those with higher energy consumption or generation capacities - and also make economic sense, the rollout is still at an early stage. The total number of metering locations of metering point operators in Germany is 53,215,269, of which according to the Federal Network Agency, only 2.18 per cent have been equipped with smart metering systems to date (as of 17 April 2025).
A reliable and secure data communication is crucial for the successful nationwide rollout of smart electricity meters. This is where Deutsche Telekom's IoT solutions come into play. With technologies such as NB-IoT and LTE-M, which were specially developed for low-bandwidth applications with high building penetration, Telekom offers stable and energy-saving network connections for the operation of smart meters. The various IoT networks and tariffs allow precise customisation depending on the location and data volume.
In addition, Telekom's platform Cloud of Things provides a comprehensive infrastructure for device management and data analysis. The management of IoT SIM cards, monitoring of data consumption and control of end devices are carried out via a central portal. This is a decisive advantage, especially for metering point operators, municipal utilities or energy service providers who have several hundred or thousands of devices in use. With the T IoT Hub, heterogeneous device fleets can be efficiently orchestrated - from simple sensors to highly complex energy meters.
The switch to smart metering systems is not only required by law, but is also a key lever for operational energy efficiency and economic electricity utilisation. Companies that invest in the introduction of smart meters now will benefit from dynamic electricity tariffs, automated consumption controls and the ability to optimally integrate generation plants into the electricity grid.
For business customers, it is advisable to develop a comprehensive strategy for the rollout of smart metering systems as quickly as possible. This includes identifying affected properties, selecting suitable partners for technology and communication, complying with legal requirements and ensuring the future development of new business models based on the collected energy data. In pilot projects in selected areas, companies can gain experience and evaluate the cost-effectiveness of the systems before making major investments.
The right IoT connectivity coordinates IoT connections across platforms, integrates devices and data via API, and enables global control with the highest security standards. You can manage your IoT projects flexibly, efficiently, and independently of manufacturers.
Having been with Telekom since 2008, Ümit possesses a comprehensive understanding of various facets of the Internet of Things. He has a keen interest in the digital transformation of the business world. On this blog, he shares insights into the latest developments and trends in the IoT sector that provide genuine value to customers.
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