Everything you need to know about Smart Metering

Smart Metering in NSW: How Smart Meters Help Businesses Reduce Energy Costs

Smart metering is becoming an increasingly important part of energy management across New South Wales (NSW). From commercial buildings and shopping centres to industrial facilities, swimming pools and strata properties, smart metering gives businesses greater visibility over how electricity is being used and where savings may be possible.

With rising operating costs and a growing focus on energy efficiency, installing a smart metering system can help businesses make informed decisions, identify unnecessary energy consumption and improve the performance of their electrical equipment.

In this guide, we explain what smart metering is, how it works, the benefits of energy monitoring and why businesses across NSW are investing in smarter energy management solutions.

What Is Smart Metering?

Smart metering uses digital meters, monitoring equipment and software to measure energy consumption and provide useful information about how a property or facility uses electricity.

Unlike traditional electricity meters, which generally provide limited information about overall consumption, advanced metering and monitoring systems can provide more detailed data at regular intervals.

Depending on the system installed, users may be able to monitor:

• Total electricity consumption

• Real-time or near-real-time energy usage

• Maximum demand and peak loads

• Individual electrical circuits and equipment

• Energy consumption outside operating hours

• Historical consumption patterns and trends

• Equipment performance and potential energy wastage

Smart metering systems can be particularly valuable for commercial and industrial properties where electricity consumption is spread across multiple systems, plant rooms, tenancies and pieces of equipment.

Why Is Smart Metering Important for NSW Businesses?

For many businesses, electricity is a significant ongoing operating expense. However, without detailed consumption data, it can be difficult to determine exactly where energy is being used or identify opportunities to improve efficiency.

Smart metering helps address this problem by providing measurable information that supports better energy management.

The NSW Government identifies metering and monitoring as important tools for businesses seeking to identify inefficiencies, reduce energy costs and improve facility performance.

For businesses operating in Sydney, Newcastle, Wollongong and regional NSW, energy monitoring can help answer important questions:

• Which equipment is consuming the most electricity?

• Are electrical systems operating when the building is closed?

• Are peak demand periods increasing electricity costs?

• Is equipment using more energy than expected?

• Have energy efficiency upgrades delivered measurable savings?

Having access to this information allows businesses to move beyond estimated consumption and make decisions based on actual operating data.

The Benefits of Smart Metering and Energy Monitoring

1. Reduce Electricity Costs

One of the main reasons businesses invest in smart metering is to identify opportunities to reduce electricity expenses.

By monitoring consumption patterns, businesses can identify unnecessary energy use, investigate inefficient equipment and adjust operating schedules where appropriate.

For example, a commercial swimming pool may operate multiple pumps, filtration systems, heating equipment and other electrical loads throughout the day. Without individual monitoring, it can be difficult to determine which systems are responsible for the highest energy consumption.

Installing suitable submetering equipment can help identify these loads and establish where improvements may be worthwhile.

The NSW Government reports that energy metering and monitoring can help businesses save around 5–15% in energy costs, although actual results depend on the facility, its existing systems and the actions taken after monitoring begins.

2. Monitor Individual Equipment and Circuits

A main electricity meter provides an overview of total consumption, but it may not show how much electricity individual systems are using.

Smart submetering allows businesses to measure specific electrical loads separately.

Depending on the installation, this may include:

• Air conditioning and HVAC systems

• Electric heat pumps

• Pool pumps and filtration equipment

• Commercial refrigeration

• Lighting circuits

• Hot water systems

• Mechanical plant and industrial machinery

• Individual commercial tenancies

This detailed information helps facility managers understand how each system contributes to total electricity consumption.

It can also support equipment comparisons, maintenance planning and decisions about future upgrades.

3. Identify Peak Demand and Energy Waste

Electricity costs can depend on more than the total amount of energy consumed. Some commercial electricity contracts also include demand-based charges, making periods of high electricity demand important to monitor.

Smart energy monitoring can help identify when multiple electrical systems operate simultaneously and contribute to higher demand.

For example, a facility may start several pumps, heating systems and air conditioning units at the same time. Monitoring can help reveal these demand peaks and support strategies to stagger equipment operation where technically and operationally appropriate.

Smart metering can also highlight energy consumption outside normal operating hours, helping businesses investigate equipment that may be running unnecessarily.

4. Improve Facility Management

For facility managers, access to accurate energy data can make it easier to understand how a building operates.

Instead of relying solely on electricity bills, managers can review consumption trends and compare performance across different days, operating periods or areas of a property.

This information can help identify unusual consumption patterns and investigate potential equipment faults or control issues.

When integrated with compatible building management systems, smart metering can also support more coordinated monitoring of electrical and mechanical services.

5. Support Sustainability and Energy Reporting

Businesses are increasingly interested in measuring their energy performance and reducing their environmental impact.

Smart metering provides data that can support energy reporting, emissions calculations and the assessment of energy efficiency initiatives.

For larger commercial buildings, energy data may also contribute to relevant reporting and benchmarking processes, including NABERS assessments where applicable.

Accurate measurement provides a useful baseline for evaluating whether operational improvements or equipment upgrades have reduced energy consumption.

What Is the Difference Between a Smart Meter and a Submeter?

Although these terms are often used interchangeably, they can serve different purposes.

A smart electricity meter generally measures electricity supplied to a property and communicates consumption data to the relevant retailer or metering service.

A smart submeter measures electricity consumption within a property, such as an individual tenancy, electrical distribution board or specific piece of equipment.

For example, a commercial building may have a main electricity meter measuring the entire site, alongside submeters monitoring air conditioning, lighting, lifts and individual tenant areas.

This arrangement provides a more detailed picture of how electricity is distributed and consumed.

It is important to distinguish between a retailer's electricity meter, which is used for market and billing purposes, and a private monitoring meter, which may be installed to help manage internal consumption. Requirements vary depending on the intended use and installation.

Smart Metering for Commercial Buildings in NSW

Smart metering can benefit a wide range of commercial properties across NSW.

Shopping Centres and Retail Properties

Shopping centres often contain multiple tenancies, shared services, lighting systems, lifts and air conditioning equipment.

Submetering can help property managers understand consumption across different areas and investigate potential inefficiencies.

Strata Buildings and Apartments

Submetering can help monitor electricity consumption in common areas, including lighting, ventilation, lifts, pumps and shared facilities.

The appropriate metering arrangement depends on the building's electrical configuration, ownership arrangements and billing requirements.

Hotels and Leisure Facilities

Hotels, aquatic centres and leisure facilities can operate energy-intensive equipment for extended periods.

Monitoring pumps, heat pumps, ventilation and other major electrical loads can help operators understand energy demand and identify opportunities to improve operating efficiency.

Industrial and Manufacturing Facilities

Manufacturing businesses may have substantial electrical loads associated with machinery, compressors, production lines and ventilation.

Detailed metering can help identify high-consumption processes, compare operating performance and investigate unexpected changes in electricity use.

Smart Metering for Pool Pumps and Heat Pumps

Aquatic facilities are a useful example of where smart metering can provide valuable operational insights.

Commercial swimming pools and leisure centres may use multiple circulation pumps, filtration systems, electric heat pumps and water treatment equipment. These systems can contribute significantly to overall electricity consumption.

A suitably designed energy monitoring system can measure individual loads, compare operating schedules and help operators understand how electricity demand changes throughout the day.

For example, monitoring may reveal that a pump continues operating outside its intended schedule or that heating equipment creates a significant demand peak when other plant is running.

The data can then help operators assess control settings, operating schedules and potential equipment improvements.

Any changes must maintain appropriate water quality, circulation, temperature and safety requirements.

The NSW Smart Meter Rollout: What Businesses Need to Know

NSW is part of Australia's national smart electricity meter rollout, which is intended to transition customers away from older electricity meters towards advanced metering technology by 2030.

Under the national arrangements, new and replacement electricity meters are required to be smart meters, subject to applicable rules and exemptions.

For eligible homes and small businesses, the retailer generally coordinates the installation of a standard replacement meter.

However, a standard smart electricity meter is not necessarily the same as a comprehensive commercial energy monitoring system.

Businesses that want to monitor individual machines, electrical circuits, tenancies or building services may require additional submeters, communications equipment and monitoring software.

If your business needs more detailed information about electricity consumption, it is worth assessing whether your existing metering arrangement provides the level of visibility required.

What Should You Consider Before Installing a Smart Metering System?

Choosing the right smart metering solution starts with understanding your objectives.

Before proceeding, consider the following factors:

1. Your monitoring requirements: Determine whether you need whole-site monitoring, individual circuit measurements, equipment-level data or tenancy submetering.

2. Your electrical infrastructure: Existing switchboards, available space, current transformers, communications infrastructure and site access can affect the installation design.

3. Data access: Consider whether you need a web dashboard, historical reports, alerts or integration with an existing building management system.

4. Demand monitoring: If peak demand is important to your electricity costs, confirm that the proposed system supports the required demand measurements and reporting intervals.

5. Future expansion: A scalable system can make it easier to add more circuits, equipment or buildings as your requirements change.

6. Installation and compliance: Electrical metering work must be appropriately designed and installed in accordance with applicable NSW electrical safety requirements and relevant standards.

A qualified electrical professional or metering specialist can help determine which solution is suitable for your property.

Is Smart Metering Worth It for Your Business?

The value of smart metering depends on your electricity consumption, operating hours, equipment, electricity tariff and ability to act on the information collected.

For businesses with complex electrical systems or high energy usage, monitoring can reveal opportunities that may not be obvious from monthly electricity bills alone.

The most effective approach is to establish a baseline, measure the relevant loads, review the results and implement improvements where justified.

Over time, this process can help businesses better understand their energy use, improve operational decisions and assess the results of energy efficiency projects.

Looking for Smart Metering Solutions in NSW?

If you manage a commercial property, industrial facility, strata building or leisure centre, understanding your electricity consumption is an important step towards better energy management.

Smart metering and submetering can provide the information needed to monitor electrical loads, investigate energy waste and make more informed decisions about equipment performance.

Whether you are planning a new installation or looking to improve visibility across an existing site, selecting the right metering system starts with understanding your electrical infrastructure and monitoring requirements.

Contact our team to discuss your smart metering and energy monitoring requirements in NSW. We can help you identify the information you need to collect and determine an appropriate approach for your project.

Frequently Asked Questions About Smart Metering in NSW

What is smart metering?

Smart metering uses digital meters and, where applicable, communications software to collect electricity consumption data. Depending on the system, it can provide detailed information about energy use, demand and equipment performance.

Can smart metering reduce electricity bills?

Smart metering can help identify energy waste and opportunities to improve efficiency. Savings depend on the site and the actions taken in response to the monitoring data.

What is commercial energy submetering?

Commercial energy submetering measures electricity consumption within a property, such as individual tenancies, plant rooms, circuits or equipment. It provides more detail than a single whole-site meter.

Can I monitor pool pumps and heat pumps?

Yes. Suitable metering equipment can monitor the electricity consumption of pool pumps, heat pumps and other electrical loads, subject to the equipment and installation design.

Are smart meters compulsory in NSW?

Australia's national rollout is transitioning customers to smart electricity meters by 2030. New and replacement meters must generally meet smart meter requirements under applicable national rules. Contact your electricity retailer to discuss a standard meter replacement.

How do I choose a smart metering system?

Start by identifying which electrical loads you need to monitor, how frequently you need data, whether remote access is required and whether the system must integrate with existing building management or reporting software.

Take control of your energy data. Smart metering can help NSW businesses better understand electricity consumption, improve facility management and identify opportunities for more efficient operations.