Smart meter rollout: finally more speed at a too low level

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Digitizing power grids has been a goal of federal governments for two decades now. It is necessary to better reconcile the new reality of decentralized generation, storage, and electrification in the course of the energy transition with the stresses on the power grid. So-called smart meters, electricity meters that can also perform control functions for the connected energy consumers or producers, are therefore considered central. In energy law German, they are called “Intelligent Metering Systems” (iMSys). And according to figures from the Federal Network Agency, 3.094 million of them had been installed by the end of 2025 – too few.

The “iMSys” are an essential building block of the hope for an intelligent power grid and should not be confused with the digital standard meter, the “modern metering device” (mME). While these can also count in both directions and thus – unlike the old Ferraris mechanical meters – do not run backward, they communicate at most locally, for example via separate infrared reading heads for reading digital meters. Power generators and consumers connected to them are not controllable by network operators via “mME”. This is precisely where the difference to “intelligent metering systems” (iMSys) lies: a communication unit to the operator, which sends quarter-hourly values (usually via LTE-M) and can receive control commands. So that, for example, heat pumps temporarily reduce their output and e-cars charge more slowly, or solar systems do not feed into the grid when it is beneficial for the grid. This is politically desired and legally required.

Now it counts with the installation obligation

Every quarter, the “fundamentally responsible metering point operators,” usually the regional distribution network operators, must therefore provide data on the status of their infrastructure. Since last year, there has been an installation obligation for “iMSys” for all connections with an annual consumption of more than 6000 kilowatt-hours – which are usually commercial or industrial users. In addition, controllable systems with more than 4.2 kilowatts, such as larger heat pumps, air conditioners, or electricity storage systems that can load or support the grid as large-scale storage, are to be installed behind the combination of a remotely controllable metering and control unit. By the end of 2032, these cases should be completed, and 90 percent of all units must then be “intelligent.”

In addition to controllability, which is important for grid efficiency, there is primarily a positive effect for the operators, as the EON subsidiary Westnetz explains upon request: “They provide insight into the low voltage. Only through intelligent metering systems do network operators see what is actually happening at the lower voltage levels.” Until now, even for the operators, consumption and production values could not be broken down on a per-connection basis. However, installation progressed slowly for most metering point operators in the first few years. With the year-end figures, it now counts: Those who do not meet the 20% quota are violating applicable law – and must expect penalty payments.

77 proceedings initiated, more likely to follow soon

For Klaus Müller, the President of the Federal Network Agency, the result of the survey is now clear: “We are finding that many companies are not meeting the legal expansion targets.” The Federal Network Agency has therefore initiated proceedings against 77 operators on Friday who have not yet reported a single mandatory installation case.

A closer look at the figures mainly reveals municipal and city utilities, from Zeulenroda via Meckenheim in the Palatinate to Schorndorf, but also individual electricity works. Among them are those that apparently belong to industrial companies such as the disposal company for nuclear facilities, the dismantling company for the GDR nuclear power plant in Lubmin near Greifswald, or the Halle/Leipzig airport.

Good half are below the legal requirement

In fact, these 77 cases are only special outliers. Large companies and larger municipal utilities that operate their own metering points have also missed the legal equipment quota – the energy subsidiary of Deutsche Bahn, for example, has 17.7 percent, Stuttgart Netze GmbH the same. And the electricity works Schönau (EWS), known as “eco-electricity rebels,” only achieve 18.4 percent of mandatory cases, or 20.7 percent of their meters with optional installation cases.

According to Federal Network Agency figures, 488 out of 813 registered metering point operators missed the 20 percent mark by the end of 2025; if the quota of optional installation cases is included, it is still 434. It is therefore unlikely that the number will remain at 77 cases – and the imposition of penalty payments, which is only possible when optional cases are also missed, is highly probable.

Smart meter rollout depends on operators

At the same time, other metering point operators even exceed their targets, but this is not offset. Westnetz GmbH, for example, reports an equipment quota of 34.8 percent “without optional installation cases” – with optional cases, even 49.8 percent. And this can also be translated into figures. “By March 2026, Westnetz will have installed more than 380,000 intelligent metering systems and is thus one of the leading network operators in Germany,” explains a spokeswoman for the Westenergie subsidiary on the status.

Even Stromnetz Berlin, which is state-owned and has recently been criticized for other reasons, is achieving unusual results for the capital and is well above target: 28,700 new “iMSys” were added in 2025. “This brings us to around 78,700 of these devices in our area of responsibility,” explains press spokesman Henrik Beuster upon request from heise online. And thus 55 percent of the current mandatory installation cases. So it seems to be possible if the operators really want it.

The German Association of Energy and Water Industries (BdEW) still sees backlogs, but above all an increasing expansion rate. “This differentiated picture is an expression of a functioning market,” says a spokeswoman upon request from heise online. Viewed across all providers, the legally required quota for 2025 was already met ahead of schedule in the third quarter, so they see the glass as half full rather than half empty. This is mainly due to the largest metering point operators with more than 500,000 smart meters. Their installation quota now averages 27.1 percent. For the smallest, with fewer than 30,000 metering points, it was only an average of 14.6 percent.

Massive basements and meter cabinets as a problem

These large differences have something to do with functioning processes, but also with empirical values. The difficulties in installation are of various kinds – and not only due to the often-complained shortage of skilled personnel. Sometimes it's very trivial things, like incompatible connection cables between the two different components of the meter and the communication module, which would then cause difficulties during the rollout. Another problem for the power grid operator is high-rise building architectures: power connections usually arrive in the basement – but anything that transmits wirelessly and massive concrete and steel structures are not friends. The standard GDR prefabricated building, but also many office high-rises and some private buildings, have such massive basement floors – which is not conducive to the radio signals that the smart meter gateway has to receive and send.

If the connection quality is not sufficient, an external antenna must be connected and installed – which significantly increases the effort. The prescribed meter cabinets can cause additional problems, experts explain: Only lately have they increasingly been equipped with less signal-inhibiting plastic doors. But in the end, each individual meter must be physically touched, wired, and tested – and that takes time.

Momentary percentages with growing mandatory installation volume

“It is obvious that the new technology cannot be rolled out to all customers simultaneously,” says a BdEW spokeswoman. “There are not enough resources for this, and it is not efficient.” However, the political demands for a more controllable grid and the expansion rate still do not match. Only one company has reached the 100% smart meter quota so far: the power plant subsidiary of the Volkswagen Group in Wolfsburg, which is currently more electro-skeptical again.

Nevertheless, network operators must become significantly faster. Because the 4.7 million mandatory installation cases defined by the Federal Network Agency for the end of 2025 are only a snapshot. According to the market data register of the Federal Network Agency, 93,022 producers with more than 6 kilowatt-hours of capacity were added in 2026 alone. The much-discussed and often unfairly discredited heat pump is experiencing great interest in view of the uncertainties with fossil energy sources. With every new heat pump, wallbox, and larger solar system, the number of mandatory installation cases grows – however, a smart meter is already being installed during the installation.

Little has changed since a 2007 German government assessment: “The recording of energy consumption in Germany does not correspond to the technical state of development.” At least: 53.8 percent, or a good 30 million, of the metering devices are now “modern,” i.e., electronic two-way meters. In addition, there are the good three million “iMSys.” So there are only about 23 million mechanical Ferraris meters left for the metering point operators before the complete digitalization of the power grid at the end-consumer level is achieved.

(nen)