Could smart meters hold the key to hitting climate change targets?

Recent research has indicated that smart meters could be the key to achieving the UKs climate change targets. However, a survey by BEIS shows that only 35% of us have one.

The research, conducted by Delta-EE on behalf of Smart Energy GB, has shown that engaged consumers could save hundreds of pounds, cutting their annual bill by as much as a fifth. It claims that smart meters could provide revolutionary disruption to the UK energy market, likening them to Spotify for music or Netflix for visual entertainment.

It also found that smart meters could contribute to a 25% reduction in CO2 from homes by 2035, as well as providing an ‘essential building block’ to energy generation to lead to a 77% CO2 reduction. The UK’s commitment for CO2 emissions is to achieve an 80% reduction by 2050, with an interim target of 57% by 2030.

The Delta-EE research claims that, if the UK is to achieve its CO2 emissions goals in a low cost way, out energy system needs to ‘radically change’. They believe that smart meters hold the key to unlocking powerful changes to take the UK towards its goal.

The first key to change is identified as using energy more efficiently and reducing waste. They say that increased awareness through visible, real time feedback will help households to make significant savings.

According to the research, being what they call ‘energy-wise’ will help customer save 5-15% of their energy consumption, equivalent to £50 a year. Further being able to identify high consumption appliances in their home could support a further 4.5% saving, up to £40 per year. They also say that smart meter use has the ability to encourage energy efficiency improvements to save over £100 per year per measure.

Aside of behavioural changes instigated through a greater awareness of energy use, a complete rollout of smart meters would enable the implantation of smart time of use tariffs (SToU). Measuring energy use accurately in real time will be the key that unlocks dynamic pricing, getting householders to use their energy when low carbon supplies are readily available.

The research paper says that trial tariffs have hinted at the savings possible through SToU tariffs. Shifting energy use away from peak times could save up to £90 a year, or as much as £130 for those who use electric vehicles.

As well as changes from the consumers end, the research suggest some fundamental changes in the energy supply business will be possible too. Tariff auto switching is identified as one of the mechanisms by which additional savings can be achieved. It also talks about smart pre-payment meters and peer-to-peer energy trading as platforms for major future change.

Robert Cheesewright, director of corporate affairs at Smart Energy GB, told Utility Week that,

“This report shows that smart meters are a key part of a potential 25 per cent carbon saving, helping us to achieve our environmental targets and take an important step towards achieving a greener and more sustainable Britain.”

The recent BEIS Public Attitudes Tracker survey has revealed that only 35% of UK households currently own a smart meter. While this is a marked improvement over the 6% ownership in 2012, it’s still a way off the 100% target set for the end of next year.

Social housing tenants were shown to have the highest ownership of smart meters at 40%, followed by homeowners at 35% and private tenants at 29%. On the upside, awareness of smart meters has reached a new peak, with 88% of respondents knowing what they are. Only 12% had never heard of them, compared to 53% in 2012.