Understanding renters and landlord rights around smart meters for rental homes is the first step to improving energy efficiency and managing usage more effectively. However, there is still some misunderstanding about whether tenants in rental properties can install a smart meter or whether it’s up to the landlord.
38 million households in the UK have a smart meter, with nearly 8,000 installations every day in 2024. Meanwhile, Google searches for “will smart meters be compulsory by 2025” have increased by 1,340% in the last 12 months.
The government is aiming for 80% of British homes to have a smart meter by the end of 2025 this year. While it’s not compulsory to opt in, there are many benefits for both landlords and tenants and it means that your tenants may well be asking to have one installed.
The benefits of smart meters
Understanding rights around smart meters in a rental home is the first step to improving energy efficiency and managing usage more effectively. However, there is still some misunderstanding about whether tenants in rental properties can install a smart meter.
Over three-quarters (84%) of private renters say they would find it useful to have a smart meter installed to stay on top of their energy usage. Smart meters provide accurate bills, tools to monitor energy usage, and access to time-of-use tariffs, where electricity can cost less at certain times of the day.
A smart meter will send suppliers daily or half-hourly readings, depending on the tariff, to make bills more accurate. Some energy providers reward customers with reduced unit rates or bill credit for using electricity during off-peak hours, usually between 11pm and 8am. There are also schemes that offer free or discounted electricity during hours when green energy is more abundant on the grid.
Who can request a smart meter?
The energy bill payer can choose to have a smart meter installed so that means that tenants responsible for the energy bills in the property can request an installation. However, it’s best practice for them to ask for permission from you, the landlord first. Your tenancy agreement may include a clause preventing tenants from installing a smart meter. However, Ofgem advises that landlords should not unreasonably refuse such requests.
When utilities are included in the rent, then it’s up to you as the tenant’s landlord to decide whether to install a smart meter in their rental property. This is because the choice rests with the account holder, in this instance, the landlord. The exception to this is if the energy provider determines that the current meter needs to be replaced, for example, if it’s faulty or could lose accuracy. Since many traditional meters are no longer being made, a smart meter will be installed. Smart meters can be switched to ‘dumb mode’ through a request to the supplier; however, doing so removes the benefits of having one.
Why have a smart meter?
Nine in 10 renters have stated that they have experienced benefits from having a smart meter. These include:
For renters:
Renters can benefit from a smart meter by using it to keep track of their energy usage and their account balance. Certain schemes and tariffs can be accessed by tenants who have arranged for smart meter installation, which reward them for optimising their energy usage.
For landlords:
Landlords will benefit from receiving an accurate billing at the end of a tenancy, which will make it easier to manage end-of-tenancy bills. Smart meters are also beneficial for vacant periods; regular meter readings can ensure your account balance is accurate, and you can keep a close eye on energy consumption in empty properties.
