A smart meter is an Internet-capable device that measures energy, water or natural gas consumption of a building or home.
Whereas traditional meters only measure total consumption, smart meters record when and how much of a resource is consumed. Power companies are deploying smart meters to monitor consumer usage and adjust prices according to the time of day and season.
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The smart meter acts as the network termination point, an ingress router between the utility’s network and the building it is monitoring. When connected to a building automation system, a smart meter will allow the building administrator to control heating, ventilation and air conditioning (HVAC) based on real-time energy costs.
A smart meter is one component of a smart grid, an approach to managing energy distribution and consumption that uses Internet technologies to create bi-directional communication, coordination and control.