When the rollout of smart meters began, the world had not yet faced the energy price surges and the cost-of-living crisis that we see today. Energy consumption has since become a major concern, with business owners continually seeking ways to reduce their bills, even by small margins. In 2022, over half of business owners expressed a need to lower their overheads, particularly energy costs. Smart meters are playing a vital role in these cost-saving efforts.
The primary advantage of smart meters is their ability to track energy usage accurately. With a smart meter display, businesses can monitor their energy consumption in 30-minute intervals, making it easier to identify areas for reduction. Many businesses that have adopted smart meters have seen an average energy usage reduction of 11%, equating to annual savings of up to £135. These readings are automatically sent to energy suppliers, eliminating the need for manual recording and ensuring accurate billing.
Beyond financial savings, smart meters offer significant environmental benefits. In 2022, 67% of businesses that installed smart meters did so for environmental reasons rather than just to cut costs. Smart meters help reduce carbon footprints by balancing energy supply and demand, leading to less wasted energy. They are also crucial for the future of electric vehicles (EVs), potentially delivering a 54% CO2 reduction by 2035 due to increased electrification. Smart meters encourage EV drivers to charge during off-peak times, easing grid strain and contributing to faster national carbon reduction.
Looking ahead, the potential benefits of smart meters for businesses extend beyond immediate financial and environmental gains. Smart meters could unlock new opportunities and services that might not have been considered when starting a business. For instance, comparison websites could use energy data (with consent) to find the best tariffs for businesses, potentially expanding to include comparisons for phone contracts, broadband, and insurance, all in one place, saving time and effort.
Business renters might also benefit from innovations in energy tariff negotiations. Contracts could be arranged for entire sites rather than individual units, allowing suppliers to monitor usage patterns and tailor energy needs for each tenant. This method could lead to more fixed fees and overall cost reductions.
For businesses considering electric or hybrid vehicles, energy use will become a crucial factor. In 2022, a third of businesses indicated a move towards electric and hybrid vehicles for their operations, highlighting the growing importance of energy management in future business plans.
If you’re interested in obtaining a smart meter for your business, check your eligibility with your energy supplier. If eligible, you may have already been offered one. Renters should also consult their landlords before installation. Alternatively, you can use Smart Energy GB’s online small business hub or contact a third-party intermediary or broker if your business uses one.
Smart meters are proving to be a valuable tool for businesses looking to reduce energy costs and their carbon footprint, offering both immediate benefits and future opportunities.
CyanConnode Holdings plc (LON:CYAN) is a world leader in the design and development of Narrowband RF mesh networks that enable Omni Internet of Things (IoT) communications.
