NEWS

We’ve reached an important new milestone in Britain’s smart meter rollout. For the first time, suppliers have replaced more existing smart meters than they have installed new ones (in place of traditional meters). In Q2 2026, replacements accounted for 53% of domestic smart and advanced meter installations by large suppliers. Back in Q1 2022, the figure was just 14%. 

That change shows how the rollout is evolving, and it’s a welcome development. Suppliers are finally putting more focus on keeping smart services working for customers rather than chasing installation targets. In this article, we’ll tell you more about the latest DESNZ installation figures and what they mean for the rollout and the wider industry. 

Smart-for-smart replacements take the lead

Large energy suppliers completed around 1.067 million domestic smart and advanced meter installations during Q2 2026. For the first time, more of those installations involved replacing existing smart or advanced meters than replacing traditional meters:

• 564,000 installations replaced meters that were already smart or advanced
• 503,000 replaced traditional meters with smart or advanced equipment
• Smart-for-smart replacements therefore accounted for 53% of domestic installation activity

The shift has happened quickly. Replacement installations represented 14% of the total in Q1 2022 and 30% in Q2 2025. Just one year later, they have moved into the majority. 

DESNZ says several factors can create the need for replacement. A meter may reach the end of its operational life. Suppliers may also need to replace equipment so it remains compatible with newer communications technology.

These jobs do not increase the number of properties with smart meters, but they still matter. A customer already has the equipment. The priority is making sure it continues to provide the smart service they expect. The new figures make that work much easier to see. DESNZ now reports replacements separately rather than treating every installation as part of a single overarching total.

Looking after their customers

This development comes as smart meter coverage reaches a new, mature stage. Around 42 million smart and advanced meters are now installed in homes and small businesses across Great Britain. They account for 72% of meters in those sectors. Around 40 million of those are smart meters, and DESNZ reports that 92% are operating in smart mode, meaning they can communicate remotely with the customer’s energy supplier. However, that still leaves more than 3 million smart meters operating in traditional mode.

The scale of the smart meter rollout emphasises the challenge suppliers are facing right now. Every new smart meter adds another piece of equipment that will eventually need support and, at some point, replacement. The Q2 figures show that this workload is already significant. Large suppliers replaced 564,000 domestic smart or advanced meters in just three months. As the installed base gets older, replacement activity is likely to remain an important part of day-to-day smart meter operations. The industry therefore needs enough capacity to maintain the equipment customers already have while the rollout continues.

The right work matters more than headline numbers

The growing share of smart-for-smart replacements is good news. For years, smart meter progress has largely been discussed in terms of installation totals. Those numbers still tell us something useful, but they no longer show the full picture. Replacing an existing smart meter may make no difference to headline coverage. It can still make a major difference to the person using it. If a meter has reached the end of its working life or needs to be replaced to support newer communications technology, carrying out that work protects the customer’s smart service.

This is actually progress. Suppliers should be able to allocate resources to the work that delivers the best outcomes for customers. Sometimes that means replacing a traditional meter. Increasingly, it also means maintaining the huge smart meter estate already operating across Britain. Arbitrary installation targets can pull attention in the wrong direction. They reward additions to the installed base even when suppliers have other important work to complete. The latest DESNZ figures suggest the industry is already shifting its efforts towards a broader job.

Looking ahead

Smart-for-smart replacements becoming the majority of domestic installation activity marks a significant point in the rollout. Britain already has around 42 million smart and advanced meters. Keeping that equipment operational now demands serious attention, along with further installations.

The rise in replacement work should therefore be welcomed. Customers need meters that work properly throughout their operational lives and remain compatible as communications technology changes. Success should increasingly reflect that reality. The focus now needs to be on delivering a reliable smart meter service for customers, rather than measuring progress primarily by the number of new meters installed.