The idea of the smart grid and the ability to communicate real time electrical market data to consumers will allow people to choose when to use electricity based on the smart grid rates. There is a lot involved in the electrical market and power pricing. Basically electricity is more expensive during higher demand times, usually mid week, mid day to evening. During the times if high demand electricity rates go up exponentially. This is due in part to the lack of generation capability and availability.

With the smart grid the communication of real time electricity rates to the consumer will be possible. This will allow people to choose not to use as much power during peak times to avoid high costs; this will overall reduce the demand. Smart grid compatible appliances or grid friendly appliances will be able to turn off and on automatically based on the cost of electricity at any given moment in time.

Many power companies now offer products and services to help their customers take advantage of the smart home. For example, many power companies offer an online marketplace, an Amazon-like website that allows you to purchase smart home and energy-efficient products, often with a significant rebate or incentive applied. On ComEd Marketplace, a website for Illinois’ largest power company, customers can purchase a Google Nest Thermostat for only $69 after instant rebate. Some power companies may give you a free smart thermostat or significant rebate if you enroll in a program to move your energy use away from times of high electricity usage (for example, the early evening on a hot summer day). These programs help power companies avoid using costly energy, and those savings are passed along to all customers, as well as the extra bill savings if you participate.

Smart meters are tested for accuracy and their primary function is measuring power usage. Similar to your old meter, smart meters will measure the energy that is used by residents of your home. The meter itself cannot and will not increase your bills. Your bills could actually be lower because smart meters and smart grid technology will provide you with personalized information and tools to decrease your energy usage. Old analog meters can stick or run ‘slow’ resulting in inaccurate bills. In cases like this, the smart meter will now provide an accurate reading of your energy usage.