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Do smart meters and solar panels work together?
Understand how smart meters and solar panels combine to reduce your energy bills.
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At a glance
đ§ A smart meter bills you precisely without you giving any readings
A smart meter is a device that replaces your traditional meter and automatically tracks your gas and electricity usage, sending this data to your energy supplier without requiring you to take manual readings.
The smart bit is in the meter itself, which uses a secure data network to transmit accurate readings of your energy use every 30 minutes. This allows for more precise billing based on your actual energy consumption.
The smart meter communicates with an In-Home Display (IHD), which is the small portable screen that most people associate with the smart meter. With the IHD, you can see how much energy you've used so far on any given day, as well as how much youâre using at any given moment.
đ Solar panels and smart meters are compatible
Contrary to some outdated misconceptions, smart meters and solar panels work well together.
There were previously issues with first-generation smart meters (SMETS1), but this has now been resolved.
Now, the best way to maximise your solar savings is to get a smart meter.
đˇ Smart meters are essential for receiving solar export payments
Unlike traditional meters that only record how much energy you use, a smart meter can monitor both the electricity you consume and the electricity you export back to the grid, which is essential for receiving solar export payments.
The average 4.4kWp solar panel system (plus battery) could earn around ÂŁ350 each year through a solar export tariff, so adding a smart meter to your solar & battery system is a bit of a no-brainer.Â
An In-Home Display is not essential; your solar PV systemâs inverter app will also be able to show the breakdown of solar self-consumption vs solar export.
đ ď¸ You can get a smart meter installed at home for free
You can get a smart meter installed in your home at absolutely no cost to you.
All you need to do is ask your energy supplier to install one for you, and the supplier should handle everything else.
The costs for this government-funded scheme are spread across everyone's energy bills, just like they are with traditional meter installations.
đ If you have solar panels, you should get a smart meter
It's not mandatory to have a smart meter, so you could have solar panels without one, but it doesnât really make any sense; smart meters are free, and they come with a huge benefit for solar panel owners.
Without a smart meter, you won't be eligible to sign up for any solar export tariff. This would mean missing out on potentially hundreds of pounds each year, and severely reduce your systemâs return on investment - which isn't great, given the high upfront cost of solar panels.Â
If you have a solar panel system but donât have a smart meter, you should get in touch with your energy supplier and ask for one.
In the face of climate change and high energy bills, households need ways to cut back on their energy usage. Smart meters and solar panels both offer a solution.
Smart meters promote awareness of your energy usage and encourage reduced consumption, whilst solar panels significantly cut the amount of electricity you buy from the grid.Â
However, there is a lot of confusion about whether these two pieces of technology actually work together.Â
Read on as we explore how solar panels and smart meters interact with each other, and dispel the myth that they âdonât mixâ.
If youâre wondering how much a solar & battery system could save you, just answer a few quick questions below and we'll generate an estimate for you.
What is a smart meter?
A smart meter is a device that replaces your traditional meter and automatically tracks your gas and electricity usage, sending this data to your energy supplier without requiring you to take manual readings.Â
The smart bit is in the meter itself, which uses a secure data network to transmit accurate readings of your energy use every 30 minutes. This allows for more precise billing based on your actual energy consumption.
The smart meter communicates with an In-Home Display (IHD), which is the small portable screen that most people associate with the smart meter. With the IHD, you can see how much energy you've used so far on any given day, as well as how much youâre using at any given moment.
Is it true that smart meters and solar panels don't mix?
Contrary to some outdated misconceptions, smart meters and solar panels work well together. There were previously issues with first-generation smart meters (SMETS1), but this has now been resolved (more on this below).
Unlike traditional meters that only record how much energy you use, a smart meter can monitor both the electricity you consume and the electricity you export back to the grid, which is essential for receiving solar export payments.
That said, while all smart meters can track your solar electricity exports, only certain advanced IHD models can actually display the live distinction between how much solar electricity you're consuming and how much you're exporting to the grid.Â
However, an advanced IHD is not essential; your solar PV systemâs inverter app will also be able to show the breakdown of solar self-consumption vs solar export.
Why is it beneficial to have a smart meter with solar panels?
Having a smart meter with solar panels is crucial because it allows you to take advantage of solar export tariffs, which first came into existence after the launch of the Smart Export Guarantee (SEG) in 2020.Â
These tariffs require a smart meter because they provide half-hourly metering, precisely tracking the electricity you export to the grid. Without a smart meter, your tariff provider wonât know how much energy youâve sent them, and consequently wouldnât be able to pay you.Â
The average 4.4kWp solar panel system (plus battery) could earn around ÂŁ350 each year through a solar export tariff, so adding a smart meter to your solar & battery system is a bit of a no-brainer.Â
This estimate is based on a household experiencing average UK irradiance with a 4.4kWp solar panel system and a 5.2kWh battery, using 3,500kWh of electricity each year and signed up to the Intelligent Octopus Flux export tariff.
To find out more, check out our guide to the best export tariff rates.
What are the main types of smart meter?
There are two main types of smart meters: first generation (SMETS1) and second generation (SMETS2). SMETS stands for Smart Metering Equipment Technical Specifications.
First-generation smart meters
First-generation smart meters were the original models installed by energy suppliers at the start of the rollout in 2011, until they were phased out in 2019.
Unfortunately, these meters encountered a significant technical issue: if you changed your energy provider, they would lose their smart capabilities and stop sending automatic readings - though they would continue to work like a traditional meter.Â
However, as of March 2024, the majority of SMETS1 meters have been remotely switched over to the national communications network (run by the Data Communications Company, or DCC), which means theyâll keep working if you switch energy suppliers.
Compatibility issues with SMETS1 and solar panels
Besides the technical limitations when changing energy providers, SMETS1 meters also had problems working with solar panels. This was because energy suppliers each used their own technologies (which complicated accuracy levels), and some SMETS1 meters couldn't track how much electricity a household was exporting.
These issues have largely been resolved with the mid-2017 rollout of second-generation smart meters (SMETS2) which use a new infrastructure (more on that below).
If you still have a SMETS1 meter, there's no need to change it to SMETS2. As previously mentioned, the DCC is in the process of remotely upgrading SMETS1 meters to restore their full functionality by moving them over to the new network.
Second-generation smart meters
Second-generation smart meters, also known as SMETS2, are the current standard. They are capable of measuring both imported and exported electricity without fault, and they donât stop working if you switch over to a new supplier.Â
And just like SMETS1, second-generation smart meters are free to install.
Can you have solar panels without a smart meter?
It's not mandatory to have a smart meter, so you could have solar panels without one, but it doesnât really make any sense; smart meters are free, and they come with a huge benefit for solar panel owners.
Without a smart meter, you wouldn't be eligible to sign up for any solar export tariff. This would mean missing out on potentially hundreds of pounds each year, and severely reduce your systemâs return on investment - not great, given the high upfront cost of solar panels.Â
If you have a solar panel system but donât have a smart meter, you should get in touch with your energy supplier and ask for one.
Summary
Since mid-2017 and the launch of SMETS2, smart meters and solar panels have been a complementary match, and are an essential pairing if homeowners want to take advantage of any solar export tariffs.Â
Historically, there was a reason to be doubtful about smart meters and solar panels due to technological incompatibility, but these days are over.Â
If you're interested in finding out how much a solar & battery system could save you, answer a few quick questions below and weâll provide you with an estimate.
Smart meters and solar panels: FAQs
Can you have a smart meter if you have solar panels?
You can have a smart meter if you have solar panels. All you need to do is ask your energy supplier to install one for you (itâs free).Â
A smart meter is both a highly recommended tool for optimising your solar panel system, and a requirement for signing up to a solar export tariff.
If youâre not receiving payments for the electricity you export, this can severely limit your solar systemâs return on investment. Â
How do you read a smart meter with solar panels?
Reading a smart meter is the same, regardless of whether you have solar panels as well. Every smart meter comes with a portable, digital screen called an In-Home Display which shows your energy usage at any given time in the day.Â
Only the most advanced In-Home Displays are capable of showing how much solar-generated electricity youâre using and how much youâre exporting.Â
If you donât have one of these advanced displays, you can still get this information whenever you want by checking your inverterâs tracker app.
Are there any compatibility issues with smart meters and solar panels?
Today, solar panels and smart meters do not encounter any incompatibility issues.Â
In the past, first-generation smart meters sometimes struggled to accurately report electricity exports and consequently homeowners werenât paid fairly, but this problem has been resolved since the launch of second-generation smart meters in mid-2017.
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Written byMelody Abeni
Based in London, Melody is a specialist green technology writer who has been covering sustainability, climate action and ESG for the past five years, after gathering operational experience in green investing and financial services. She has written for various industry publications, including renewable technology advisor The Eco Experts, and she holds a Masterâs degree in law from Birkbeck University.