Since January 1, 2025, new regulations for smart meters have come into effect in Germany, aiming to accelerate the use of intelligent electricity meters in German households. These changes raise many questions.

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As a member of the Smart Meter Initiative, we are happy to answer them! What is a smart meter? How does a dynamic electricity tariff work, and how do both you and the environment benefit from it? In this article, we address the most important questions, debunk common myths, and explain the changes coming in 2025.

Smart Meter: What They Are and How They Work

A smart meter is an intelligent electricity meter that digitally records electricity consumption and transmits the data to the energy supplier. It consists of a modern measuring device (mME) and the so-called orange marked Smart Meter Gateway (SMGW).

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The Smart Meter Gateway acts as the communication unit and is the heart of the device. It securely connects the meter to the electricity grid and the energy provider, transmits consumption data, ensures data protection and security, and enables the use of a dynamic electricity tariff.

How a Dynamic Electricity Tariff Works

Electricity prices fluctuate hourly depending on supply and demand. A dynamic electricity tariff adjusts to these fluctuations, so prices vary depending on the time of day, the day of the week, or the availability of electricity.

Only with a smart meter can a dynamic tariff be used, as only this setup allows the electricity consumption to be billed based on the real-time stock market prices.

How You Benefit from Smart Meters and a Dynamic Electricity Tariff

1. Save Costs by Shifting Consumption: You can move your electricity usage to times with lower electricity prices, for example, by running appliances like washing machines or dishwashers at night when electricity is cheaper.‍

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2. Monitor Your Consumption: With a smart meter and the Ostrom app, you can track your electricity usage without manual meter readings. You can identify when you consume the most and which devices are the biggest energy hogs. This helps you optimize your consumption and reduce costs.‍

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3. Better Market Adaptation: A dynamic electricity tariff is based on prices determined by supply and demand. You can benefit from lower prices when there is a high supply of renewable energy and adjust your consumption accordingly.

Why Smart Meters with Dynamic Tariffs Are Crucial for the Energy Transition

• Promote Sustainable Consumption: By shifting your consumption to times when green energy (e.g., solar or wind power) is more available, you can not only reduce your electricity bill but also contribute to the energy transition.

• Strengthen the Smart Grid: Smart meters provide important data that help grid operators manage the grid more efficiently, predict consumption, and react quickly to changes in renewable energy supply. This makes the grid more stable and flexible, which is crucial for integrating renewable sources.
• Reduce Power Peaks: Dynamic tariffs encourage a better load distribution by prompting consumers to shift their usage to times of lower demand. This helps reduce the need for expensive, environmentally harmful peak power generation and lowers CO2 emissions.
• Increase Energy Efficiency: Smart meters allow consumers to track their usage more effectively and reduce overall electricity consumption.

5 Common Myths About Smart Meters – What’s True?

1. "I prefer to read the meter once a year." --> Smart meters record consumption every 15 minutes and allow better adaptation to times with higher availability of renewable energy, potentially reducing costs.

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2. "The supplier can cut off my electricity." --> That is wrong. The supplier cannot switch off the electricity.

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3. "Smart meters are easily hackable." --> The devices are secure and use encrypted, non-internet-based connections monitored by the BSI (Federal Office for Information Security).

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4. "A digital meter is a smart meter." --> Digital meters are not automatically smart. A smart meter requires a gateway to automatically transmit consumption data.

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5. "I won’t get a smart meter." --> As of 2025, all households have the right to request a smart meter, even if their consumption is under 6,000 kWh.‍

New Smart Meter Regulations 2025: What You Need to Know

Since January 1, 2025, new regulations for smart meters have come into effect in Germany, significantly promoting the use of these intelligent electricity meters. The aim is to advance the digitalization of the energy transition, make energy consumption more transparent, and optimize the integration of renewable energies. The key changes are:

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Mandatory Installation for Certain Consumer Groups:

• Households with High Electricity Consumption: Consumers with annual consumption between 6,000 and 100,000 kilowatt-hours are required to install a smart meter.
• Operators of Generation Plants: Plant operators with an installed capacity between 7 and 100 kilowatts, such as photovoltaic systems, are also subject to the installation requirement.

Voluntary Installation for Other Households:

• Households with an annual consumption under 6,000 kilowatt-hours can voluntarily request a smart meter starting in 2025. The responsible meter operator must install the device within four months.

Cost Regulation:

• The annual costs for operating a smart meter are capped:
  • Households with consumption up to 10,000 kilowatt-hours will pay a maximum of 20 euros per year.
  • For large consumers with consumption between 10,000 and 100,000 kilowatt-hours, the costs can be up to 120 euros annually.

Offer of Dynamic Electricity Tariffs:

• Starting in 2025, all energy suppliers are required to offer dynamic tariffs. These enable consumers to shift their electricity consumption to times when prices are lower, thus saving costs.

Timeline for Rollout:

• The legal schedule foresees that by the end of 2025, at least 20% of affected consumers will be equipped with a smart metering system. By the end of 2028, at least 50%, and by the end of 2030, at least 95% of affected consumers will have a smart meter.

Get Your Smart Meter with Ostrom – Easy, Fast, and Simple!

Want a smart meter but don't know how to request one? No problem! We’ve got you covered! Thanks to our partnerships with local network operators, we will forward your request directly to ensure your smart meter is installed quickly.

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Check out our Smart Meter Page on our website and for more information, take a look at our Smart Meter Workspace.

Optimize Your Energy Consumption with Ostrom’s Dynamic Tariff and App – Save Energy and Costs!

Starting in 2025, all energy suppliers are required to offer a dynamic electricity tariff – but we’ve been offering ours since 2023! This means we’ve already gained valuable experience, continuously improving our tariff and app. 😎

With this tariff, you can track your energy consumption by the hour and are billed according to the current hourly rate.

With the Ostrom app, you can keep track of everything.

We receive two important data points daily that form the basis of our dynamic graph:

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1. Consumption data from the previous day

2. Electricity market prices for the following day

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Using the filter function, you can choose what you want to see. Select your desired time period, the data (gross price, market price, consumption in kWh), and whether you want to view hourly, daily, or monthly data, and you’ll quickly get your tailored graph.

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Learn more here about our dynamic electricity tariff.

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Not just paying, but earning too?Ostronauts, pay attention!

Join our virtual power plant "NeoGrid" and earn up to 300 euros per connected device over the course of a year.Find out more here.

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