Business Smart Meters: Your Guide to Savings, Installation, and Supplier Comparison

Commercial smart meters track your gas and electricity usage automatically and send this data to your supplier. This means you’ll get accurate, real-time billing without the hassle of estimated readings.

These smart devices are useful for businesses because they provide detailed insights into energy consumption patterns, enabling you to identify ways to reduce costs. Here's all you need to know.

What are business smart meters?

Business smart meters are electronic devices that automatically monitor and transmit real-time gas and electricity usage data from commercial premises to energy suppliers. This removes the need to send manual meter readings to your supplier and ensures more accurate, up-to-date billing for your business.​

Usage is monitored and sent to suppliers as frequently as every 30 minutes. This enables suppliers to bill based strictly on actual usage, providing clear insights on when and how energy is being used

Smart meters form part of the UK Government’s nationwide smart meter rollout, which aims to replace traditional meters with advanced digital devices in all homes and businesses by 2030. They're also a key component of the Market-Wide Half-Hourly Settlement (MHHS) programme, which will see all domestic and non-domestic meters settled half-hourly, rather than daily, monthly, or quarterly.

For commercial premises, this technology can help businesses take control of energy spending, comply with environmental regulations, and make informed decisions about tariff switching.

A key benefit of monitoring your energy usage with a smart meter is that it can highlight peak usage times. When you know more about how and when you use energy, you can consider different types of energy tariffs, like time-of-use tariffs, which charge different rates based on when you use energy. 

What are the benefits of commercial smart meters for business? 

Switching to smart meters for small businesses or larger setups can offer several advantages: 

• Accurate billing: No more estimated energy bills; you’ll only pay for the energy you use 
• Improved energy efficiency: Track your usage to identify and reduce energy waste to be more energy efficient 
• Lower costs: Businesses can switch to more suitable tariffs or reduce peak-time consumption 
• Enhanced troubleshooting: Problems can be detected earlier thanks to the constant data flow, potentially avoiding disruptions 
• Free installation: Smart meter installation is typically free, making it easier to get started 
• Supports ESG goals: Smart meters can help businesses monitor carbon impact. This can aid sustainability reporting and compliance with green business initiatives
• Remote monitoring and control: Many modern energy suppliers offer online dashboards to track data and adjust usage remotely.

For businesses with high energy consumption, upgrading to business gas and electricity meters with smart features can lead to similar cost-saving benefits as electricity meters. 

For landlords renting out commercial spaces, suppliers may offer specific tariffs that incorporate smart meters into their services, simplifying billing for both landlords and tenants. 

How much does it cost to install a business smart meter? 

Installation of a smart meter for business is generally free.  

But the Department for Energy Security and Net Zero estimates that the overall cost of the nationwide smart meter rollout will be around £13.5 billion from 2013 to 2034. This should provide £19.5 billion of benefits over the same period. 

These costs are recovered through energy bills, so there may be a small increase in standing charges, even if you do not have a smart meter installed. However, the efficiency gains can outweigh this cost over time. 

How much can your business save with a smart meter? 

Research from the Behavioural Insights Team (BIT) has estimated that smart meters could cut business electricity consumption by an average of 3.4% and lower gas usage by about 3.0%. 

If you run a micro business that uses 10,000 kWh of electricity a year, this could cut your usage by about 340 kWh. If your unit rate is 25.9p per kWh (the average rate for 2024), this would save you about £88 a year. 

Some case studies suggest that businesses that actively use smart meter data in operational decisions can make savings by adopting energy-efficient equipment and shifting heavy usage away from peak tariff periods.

While smart meter prices for installation are covered, it's essential to consider potential changes to your energy tariffs once the meter is in place. 

How to switch to a commercial smart meter at your business

Switching to a business smart meter is a straightforward process. Follow these steps: 

• Review your current contract: Check the end date and your switching window. Most contracts allow switching between 30 days and four months before they expire. 
• Gather your information: Have your MPAN (electricity) and MPRN (gas) numbers ready, along with recent bills, to provide accurate data during comparisons. 
• Request a smart meter: Contact your business energy supplier to arrange for the installation. They will set up an appointment for an engineer to visit your premises. 
• Prepare for installation: Clear the area around your current meter to facilitate a smooth installation process. 

The installation usually takes about an hour per meter. Note that business gas meters and electricity meters will require separate setups. During installation, your power may be temporarily interrupted, so schedule the appointment at a time that minimises operational disruption.

How smart meters can help small businesses 

For small businesses, smart meters offer an easy way to monitor energy usage. When these insights are used with a business energy audit, this can really help to cut energy costs. 

Small business owners can also explore combined business energy monitors, which integrate data from both gas and electricity smart meters for a complete overview. 

Many suppliers also provide consumption alerts, helping small businesses react quickly to unexpected spikes in usage and preventing bill shock.

What happens to your smart meter if your energy supplier goes bust?

If the new supplier doesn’t support the smart meter, it will function as a regular meter, and you’ll need to take manual readings. Find out more in our guide that explains what to do if your energy supplier goes bust.

Businesses in this scenario can request a meter upgrade from their new supplier once systems are compatible with the latest smart meter network (SMETS2).

How to find the best business smart meter deal

Different suppliers offer various smart meter prices and tariffs. To find the best deal for your business, simply compare what’s on offer from a range of suppliers and choose the one that best suits your needs. 

Key factors when comparing tariffs include your average consumption, peak/off-peak usage ratio, and available benefits such as free energy monitoring tools, loyalty credits, or fixed-rate guarantees.

Why invest in business gas meters and electricity smart meters? 

Combining business gas meters with electricity smart meters gives a complete picture of energy usage, enabling businesses to: 

• Track and manage total energy costs effectively 
• Identify inefficiencies across gas and electricity consumption 
• Simplify billing by consolidating into one streamlined process 
• Benchmark performance across multiple sites to inform targeted efficiency improvements.

For landlords, this can be particularly useful when managing multiple locations or units. Some landlord electricity suppliers offer bundled packages that cater to these needs, ensuring tenants and landlords have clear and accurate billing. 

Smart meters are becoming an essential tool for businesses of all sizes. Whether you're a small business owner or managing a larger commercial operation, upgrading to smart meters for business can help you optimize energy usage, save money, and reduce your carbon footprint. 

To find the best deal and get started with a business smart meter, contact the experts at Bionic on 0800 140 4667 or leave your postcode in the box on the right. Their specialists can help you compare options and choose the ideal tariff for your needs. 

Frequently Asked Questions (FAQs)

If you're still not fully up to speed with smart meters, here are answers to some of the most frequently asked questions.

Can my business refuse a smart meter?

Yes, installation is not mandatory. Businesses can refuse a smart meter, but may miss out on certain tariffs or upgrades.

Will smart meters increase my energy bill?

Although installation is free, the cost of the smart meter rollout is added to the standing charge on energy bills. This spreads the cost evenly among energy users, in much the same way as traditional meter costs are covered. They ensure accurate readings; any increase is likely due to previously underestimated usage.

Do I need a separate smart meter for gas and electricity?

Yes, separate smart meters are required for gas and electricity supplies.