Despite ambitious Government targets and their importance to the UK’s transition to Net-Zero, the UK's smart meter rollout continues to face hurdles. Many are already concluding that the Government’s deadline for suppliers to have installed smart meters in 74.5% of homes and 69% of small businesses by the end of 2025 may not be met.
Even with recent data for January 2024 suggesting a 30% increase in installations compared to December 2023, most agree that the rollout is not proceeding at the necessary pace and that not enough has been done by the Government to convince the public at large of their benefits.
With smart meters representing an important part of the national infrastructure matrix required to support a sustainable energy supply across the land, Government and suppliers have up to now missed the opportunity to fully illustrate these benefits to consumers.
With the country now entering an election cycle where voters may be less interested in the green agenda, there is a concern that we will see a drop off in Government attention and focus just at the time when a fresh approach to advocacy on this important topic is most needed.
Perceived Challenges
Upgrade hesitancy continues to be a material concern. Data tends to suggest that for many consumers this is caused by one or more of the following factors:
- Technical hiccups: early meters lacked functionality, and lingering questions remain about meter compatibility and durability.
- Consumer hesitance: many consumers remain anxious about the motivations behind the rollout, with many perceiving it as simply an attempt on the part of suppliers to increase overall charges and monitor their usage more closely.
- Lack of consistency in engagement: the installation picture has been inconsistent, in part due to different providers taking differing approaches to the rollout and also, due to a lack of coherent explanation from the Government and industry bodies of the role that smart meters can play in helping to support the transition to net zero.
The True Picture
An opportunity has been missed, up to now, to powerfully illustrate the benefits that these devices can bring, not just within individual homes, but more importantly, as part of the infrastructure network which will support a sustainable grid in the UK.
While benefits such as the ability to have real time insights into energy usage and the ability to participate in dynamic pricing, such as time of use tariffs are relatively straightforward to articulate, these devices also create powerful synergies within the UK’s growing renewables ecosystem, including:
- Supporting EV integration and optimising EV charging: smart charging and vehicle-to-grid (V2G) capabilities have the potential to optimize EV usage and offer potential revenue streams for consumers, further integrating clean transportation into the energy landscape. This optionality will help to reduce grid strain as the UK’s EV fleet grows and should also help to ensure that clean energy sources can be fully utilized, at the same time as minimising electricity costs for consumers.
- Facilitating flexible battery storage: in a genuinely two-way grid, very similarly to V2G solutions, excess renewable energy can be stored in home battery storage systems, providing an additional source of renewable energy back into the grid at times of peak demand and thereby further balancing and stabilizing the system.
- Integrating domestic solar power: for those households who have chosen to invest in a solar array and a home battery storage system, smart meters add the ability to store renewable energy when it is available for future home use or, for supply into the grid during periods of peak demand.
Up to this point, the national conversation surrounding smart meters and the rollout has not strayed much beyond the more obvious benefits relating to real-time insights and tariff flexibility. The opportunity has not really been grasped to make the more forward-looking case for smart meters as a critical aspect of a truly renewable grid for the UK and their importance in supporting the transition of the UK’s vehicle fleet from ICE to EV.
We do have concerns that this has been a missed opportunity on the part of Government and industry.
What is Needed
Work still needs to be done to overcome lingering hesitancy, clearly illustrate the manifold benefits and thereby incentivise wider adoption of smart meters.
Key requirements for achieving this include the need for clearer and more transparent communication from both Government and industry aimed at providing a clear explanation of the benefits, while also explaining the wider importance of these devices to the UK’s transition to net zero.
In addition, many of the more compelling benefits associated with smart meters, such as V2G, especially when combined with solar and a home battery storage solution are presently weighted towards consumers who own their own home. Careful thought needs to be given as to how technology could be developed to ensure that those who live in apartments, or who do not have access to their own driveway, might still be able to utilise and benefit from some of the above features.
With the UK’s 2024 election fast approaching, and posturing from both the Conservative and Labour parties suggesting that they see an election where voters are less interested in the green agenda while being highly sensitive to policy measures that might impose further strain on the cost of living, there is a real concern that the necessary advocacy from Government in this area may not be present during the campaigning period of 2024 (and therefore, during an important period for the progressing of the rollout) and moreover, that despite its importance to the transition to net zero as a whole, this may be an area which benefits from less Government focus as we move into 2025, irrespective of which party forms the next government.
