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A smart meter is a meter that measures and records the energy consumption on an hourly (or less) basis. The device then communicates with the utility for monitoring and billing purposes. They essentially provide a real-time record of your energy consumption.

What makes Smart Meters different from home energy monitors is that smart meters can gather data for remote reporting. Scary, huh? Well, not always. If you are good about your energy use, depending on the utility company, you might actually be rewarded for your environmental consciousness. The purpose of a Smart Meter is to match the consumption with the generation, and by doing so, we hope to reduce costs and thereby better the environment.

Smart Meters have been around for a while, but they are starting to become more popular. Before they used to be used strictly for electricity, but nowadays you will find that the natural gas and/or water consumption is frequently included as well.

On July 20, 2006, California’s energy regulators approved a program implement Smart Meters in 9 million gas and electric household customers in the Northern California territory of Pacific Gas and Electric (PG&E). With these Smart Meters, PG&E started to implement a program where the prices vary by season and the time of day. What this means is that people pay different prices throughout the day. Yes, it’s a little weird, but it does make some sort of sense. As I said before, you can be rewarded by switching your energy use to more efficient times or to off-peak time periods. The meters are a major “plug” for the Obama administration’s goal to create a nation that is based on an efficient “green grid.” Essentially, they want to educate people about how they consume energy and how they can use less and earn rewards for doing so.

However, very recently, PG&E has been under pressure from residents as they start to implement a wireless system. One thing’s for sure, they are worried about their privacy. Even furthermore, many people are worried that the meters threaten their liberties and their health.

Reducing energy consumption or altering your use of energy can help save the environment indirectly. The more we waste, the more we hurt our environment and every conscious step that take should be one step closer to creating a better world.