Green Home Improvement

Saving the World & Increasing Value with Eco-Friendly Products

Smart-Grid Technology

Posted by Greg Castillo on August 13, 2009

Smart MeterSmart-Grid Technology

Most of us don’t have the slightest idea how much electricity we use until we get that ever so lovely monthly bill. But with the implementation of smart-grid technology in various states and around the world, as Bob Dylan croons, “the times they are a changin’”

Using smart-grid technology, those that have a system in place are benefiting from significantly reduced energy bills through higher efficiency. This cutting-edge technology allows customers to monitor and control their electricity use through highly sophisticated software and a state-of-the-art metering system. Once installed in the home, a “smart meter” tracks real-time electrical use, transmitting the information back to your power company.

This two-way communication network (which may include power line, radio, or cellular connections) gives utility companies the ability to notify customers when peak usage times are. Having this valuable information at the ready, customers plan usage accordingly to save money. Peak electrical usage times are in the afternoon and evening, so running appliances in the early part of the day allows one to drastically cut down on energy expenses.

A Brief History & the Future of Smart-Grid Technology

Smart meters have been used by commercial and industrial customers for decades, but in recent years they have become affordable enough to be installed in the average household.


According to ABI research, some 76 million smart meters have been installed worldwide, with that number forecasted to double by 2013. Italy’s main utility company, Enel, has so far been at the forefront with respect to implementation; since 2001 they have installed more than 30 million smart meters. California plans to install roughly 12 million smart meters over the next few years, and the Canadian province of Ontario has told its utility companies to install a smart meter in every household by 2010.

Smart Meter Benefits:

  • Significant Energy Savings
  • Natural Resource Consumption
  • Lowered Carbon Emissions
  • Promotes Green Technologies Including Wind, Solar & Plug-In Vehicles

Social Issues & Potential Problems

Given that studies have found that when people know how much power they’re using, use is reduced by about seven percent, a major potential problem arises. Most power companies are reluctant to invest in technology that will reduce consumption of the product they sell. But one way to realign the public interest with that of utility companies is through “decoupling,” a process which breaks the direct relationship between electricity sales and profits. California has had a tremendous amount of success with decoupling.

The Future of Smart-Grid Technology

Smart meters will eventually be able to communicate with smart thermostats, appliances, and other electrical devices to give accurate readings of our energy consumption. Information will be accessible via home readouts or web-based portals, through which we’ll be able to set temperature preferences for thermostats and one day even enable us to select cleaner energy sources like solar and wind power.

Getting Involved

The next time you pay your utility bill just call them up and ask about smart-grid technology, and how far along their plans are toward implementation and installation.

2 Responses to “Smart-Grid Technology”

  1. robert said

    great article. i’ve been reading quite a bit about smart-grid appliances and grid systems recently. i think it’s fascinating stuff. i’m always a fan of 21st century technology. i worry a bit about the utility companies simply creating a new surcharge to compensate for any savings from having a smart-grid, but i still like the idea. but then, i’m the type to freakishly obsess over my energy consumption data.

    • Greg Castillo said

      Of course the sad thing is is that the majority of corporations and energy companies are only going to make innovative and green changes if they can profit from it, but we’ve got to do what we can. Hopefully they’ll come around sooner rather than later. Our future depends on it.

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