Business Case

Smart Meters Are a Cost-Effective Answer for Utilities and Consumers
Research shows that an investment of $7 to $8 billion between 2007 and 2017 in smart metering programs would more than pay for itself, yielding close to $15 billion per year, by 2020.2 However, the initial costs to install smart meters are significant for utilities. Such costs would include system hardware and software purchases, labor expenses for meter installation, network integration costs and consumer education campaigns.3 With assistance from American Recovery and Reinvestment Act (ARRA) funding, electricity providers, and later their customers, will not have to shoulder the expenses themselves. In time, smart meters will bring consumers – and utilities – significant savings through energy conservation, efficiency and peak demand reductions.4 Smart meters with smart pricing will help consumers conserve electricity in homes, resulting in savings for utilities by reducing peak demand expenses and management issues.