A smart meter is usually an electronic device that records consumption of electricity or natural gas in intervals of an hour or less and communicates that information at least daily back to the utility for monitoring and billing purposes. Smart meters enable two-way communication between the meter and the central system. Unlike home energy monitors, smart meters can gather data for remote reporting. Such an advanced metering infrastructure (AMI) differs from traditional automatic meter reading (AMR) in that it enables two-way communications with the meter.
Smart meters, also called advanced digital meters, are the equivalent of a home’s electricity nerve center, connecting it to the Smart Grid and enabling consumers to have better control over their usage and spending.