How much electricity, water and gas do we actually consume? And how can we reduce our energy usage? These are two questions companies must address in times of continuously rising energy prices.
So-called smart meters could quickly provide answers in such cases. In this article, we explain smart meter functionality and how these intelligent measuring devices are already supporting businesses.
A smart meter is essentially nothing more than an intelligent meter that records and stores energy consumption (electricity, gas, heat) and directly transmits the measured values. For instance, the network operator receives the electricity consumption in kWh directly. This means the industrial business no longer needs to manually read the meter and send the reading to the network operator for the annual bill. Similarly, the network operator no longer needs to send an employee to read the electronic electricity meters, eliminating costly, time-consuming and CO₂-intensive service visits.
A traditional electricity meter is a mechanical device. This device is usually installed by the network operator directly on site at the business, for example in the main fuse box. Then, during each billing cycle, a utility employee visits to read the meter data. The electricity supplier subsequently issues a bill to the company.
A smart meter is also used by the electricity supplier for billing purposes. However, the functions of the digital electricity meter go far beyond mere recording. It measures, records and transmits electricity consumption – for example, via mobile network – continuously and in real time to the electricity provider. This eliminates the need for an employee to read the meter manually on site, ensuring faster and more accurate billing.
But what exactly is smart meter functionality? It consists of two elements: a digital three-phase meter (intelligent metering systems) and a “smart meter gateway” (communication unit). The digital electricity meter records the meter reading every 15 minutes, while the smart meter gateway transmits the data to the network operator. This communication unit not only processes and determines the measured values but can both send and receive data. Recipients of such data include:
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Smart meter functionality also includes how the devices communicate. The smart meter gateway uses various communication technologies, such as:
Smart meters are often installed by a local meter operator in basements or other areas with weak signal and no nearby internet connection. Seamless connectivity to mobile devices such as smartphones, tablets or laptops is often difficult.
Nevertheless, special IoT solutions help the network operator receive and evaluate all collected data. For this reason, they often rely on the NarrowBand IoT (NB-IoT) mobile standard with strong building penetration, enabling them to receive meter data even from the basement. In addition, LTE connectivity is also considered a reliable connection for a smart meter.
To measure the energy generated by solar panels and fed into the grid, there is a WiFi energy meter. This device communicates via the WiFi network. This allows the user to measure both the forward and reverse flow of energy at any time.
Smart gateways typically operate and communicate via a mobile network. There is therefore (theoretically) a risk that third parties could intercept sensitive business data. That’s why data protection and data security fall under the responsibility of the Federal Office for Information Security (BSFI). They review and certify the multi-layered security protocols, including encryption and access controls, to protect user data. All collected data is transmitted by the metering system in anonymised or pseudonymised form, exclusively to authorised recipients and only for a clearly defined purpose.
There are already numerous companies from various industries that rely on smart meter functionality. In the following lines, we provide a few specific examples of how intelligent metering systems help companies reduce their energy costs.
You now know how smart meters work and how companies can use them to reduce their operational and energy costs. But is every company actually required to install a smart meter? Yes, because in the context of the energy transition, legislation (in principle) obliges all companies to convert to smart electricity meters by 2032. This primarily affects companies that meet one of the following criteria:
In theory, meter operators can also install a smart meter at companies with consumption under 6,000 kWh. In practice, however, this lies within the discretion of the meter operator. If they choose to do so, they must adhere to strict pricing guidelines. However, the local meter operator is also responsible for the installation and costs of the device.
The billing models themselves depend on annual consumption. For companies with an annual consumption of up to 10,000 kWh, the smart meter records electricity usage over the entire year. If the consumption exceeds 10,000 kWh, the smart meter transmits the data daily to the responsible network operator.
A smart meter is now much more than just a digital measuring device – it is a key element for greater transparency, efficiency, and sustainability in energy consumption. For many companies, upgrading is not only beneficial but also legally required. Those who act now benefit from automated processes, improved cost control, and are well prepared for the demands of the energy transition.
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Back in 2016, Anna worked on IoT topics at Deutsche Telekom for the first time. Since then, she has been supporting customer best practices in a wide range of industries – always focusing on the benefits that the Internet of Things can provide. Her IoT blogposts describe real use cases and the value these innovations add to market players, their business models, and even entire industries.
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