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.
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.