Do smart meters and solar panels work together?

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. 

However, there is a lot of confusion about whether these two pieces of technology actually work together. 

Read on as we explore how solar panels and smart meters interact with each other, and dispel the myth that they ‘don’t mix’.

If you’re 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. 

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 you’re 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Contrary to some outdated misconceptions, smart meters and solar panels work well together.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. 

However, an advanced IHD is not essential; your solar PV system’s 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. 

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 won’t know how much energy you’ve sent them, and consequently wouldn’t be able to pay you. 

The average 4.4kWp solar panel system (plus battery) could earn around £350 each year through a solar export tariff, so adding a smart meter to your solar & battery system is a bit of a no-brainer. 

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. 

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 they’ll 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 don’t stop working if you switch over to a new supplier. 

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 doesn’t 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 system’s return on investment - not great, given the high upfront cost of solar panels. 

If you have a solar panel system but don’t 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. 

Historically, there was a reason to be doubtful about smart meters and solar panels due to technological incompatibility, but these days are over. 

If you're interested in finding out how much a solar & battery system could save you, answer a few quick questions below and we’ll provide you with an estimate.

Smart meters and solar panels: FAQs