
Electric companies use meters to measure electricity consumption. These meters are usually placed outside the customer's property, and they can be mechanical or digital. While mechanical meters need to be read manually by a utility employee, digital meters automatically send usage information to the utility company. The most common unit of measurement is the kilowatt-hour (kWh), which is equal to the energy used by a load of one kilowatt in an hour. This unit is used to set rates for electricity bills, which can vary depending on the season, the size of the home, and the type of appliances used.
| Characteristics | Values |
|---|---|
| Unit of measurement | Kilowatt hour (kWh) |
| What it measures | Amount of energy used by a load of one kilowatt over a period of one hour |
| Other units of measurement | Watt, kilowatt (kW), megawatt (MW), gigawatt (GW), joule, megajoule, volt-ampere, volt-ampere reactive-hours (kvarh) |
| Meter location | Outside of the customer's property, on a utility pole, in a street-side cabinet, or inside the premises |
| Meter types | Mechanical, automated, electronic smart meter, induction type meter, digital, electronic |
| Meter functions | Measure electricity consumption, provide wireless access to power usage data, measure electricity use of individual devices, control electricity use remotely, display energy used on an LCD or LED display |
| Factors affecting electricity consumption | Types of appliances, number of devices, energy efficiency of appliances, thermostat settings, lighting, heating and cooling |
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What You'll Learn

Electricity meters
The most common unit of measurement on the electricity meter is the kilowatt-hour (kWh), which is equal to the amount of energy used by a load of one kilowatt over an hour, or 3,600,000 joules. One kilowatt is 1,000 watts. Your electricity bill likely shows how many kilowatt-hours of power your home used during the billing cycle. A home may use 5 to 50 kWh of electricity per day, depending on the season, the size of the home, and whether the home is all-electric or if some appliances are powered by natural gas.
In the past, all electricity meters were mechanical devices that a utility employee had to read manually. Now, many utilities use electronic smart meters, which provide wireless access to the meter's power usage data, to measure electricity consumption in real-time. Some smart meters can even measure the electricity use of individual devices and allow the utility or customer to control electricity use remotely. Smart meters may also come with an app that allows users to log into their accounts through their phones and monitor their energy usage.
Electronic meters display the energy used on an LCD or LED display, and some can also transmit readings to remote places. In addition to measuring energy used, some electronic meters can also record other parameters of the load and supply, such as instantaneous and maximum rate of usage demands, voltages, power factor, and reactive power used. Large commercial and industrial premises may use electronic meters that record power usage in blocks of half an hour or less. This is because most electricity grids have demand surges throughout the day, and the power company may wish to give price incentives to large customers to reduce demand at these times.
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Units of measurement
Electric companies use meters to measure electricity consumption. The most common unit of measurement on these meters is the kilowatt-hour (kWh), which is equal to the amount of energy used by a load of one kilowatt over an hour. One kilowatt is 1,000 watts, and one watt is the same as one joule per second (J/s). A joule is a unit of energy named after James Prescott Joule.
Electricity generation capacity is often measured in multiples of kilowatts, such as megawatts (MW) and gigawatts (GW). One megawatt is 1,000 kilowatts, and one gigawatt is 1,000 megawatts. A watthour (Wh) is equal to the energy of one watt supplied to or taken from an electric circuit for one hour. The amount of electricity that a power plant generates or a customer uses is typically measured in kilowatt-hours.
Demand is usually measured in watts, averaged over a quarter or half-hour. Power factor, the ratio of resistive power to volt-amperes, is also used to measure distortion of the electric current by loads. Reactive power, measured in thousands of volt-ampere reactive hours (kvarh), is positive for a lagging or inductive load (e.g. a motor) and negative for a leading or capacitive load. Volt-amperes measure all power passed through a distribution network, including actual and reactive power.
Electricity meters may be mechanical or digital. While mechanical meters must be read manually, digital meters automatically send usage information to the utility company. Electronic smart meters provide real-time wireless access to power usage data and can even measure the electricity use of individual devices.
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Energy consumption
Electricity usage monitors can be purchased to measure the electricity consumption of any device that runs on 120 volts. These monitors are plugged into an electrical outlet, and then the device is plugged into the monitor. The monitor will then display the number of watts the device is using, as well as the kWh over a longer period of time.
There are also plug-in watt-meters, which can be used to measure the power consumption of an entire home. These are simple and inexpensive, and can be used to measure the power draw of individual appliances.
The power consumption of small devices is usually measured in watts, while larger devices are measured in kilowatts (kW) or even megawatts (MW) and gigawatts (GW).
To calculate the annual energy consumption of an appliance, you can use the following formula:
> (Wattage x Hours Used Per Day) / 1000 = Daily Kilowatt-hour (kWh) consumption
> Daily kWh consumption x number of days used per year = annual energy consumption
To calculate the annual cost of running an appliance, you can use the following formula:
> Annual energy consumption x utility rate per kWh = annual cost to run appliance
There are also ways to reduce energy consumption. For example, turning off lights and unplugging devices when they are not in use, as well as adjusting the thermostat, can help to lower energy usage. Upgrading to energy-efficient appliances and electronics can also make a significant difference.
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Real-time feedback
One way is through the use of electronic smart meters. These meters are typically located on the outside of the customer's property and provide wireless access to the meter's power usage data. They measure electricity consumption in real-time and can even measure the electricity usage of individual devices. This allows customers to monitor their energy usage and make adjustments as needed. Smart meters also allow the utility company to increase or decrease capacity remotely.
Smart meters may also come with an app that allows customers to log into their accounts and track their energy usage through their phones. This provides customers with real-time data and helps them make informed decisions about their energy consumption.
In addition to smart meters, there are now low-cost energy feedback displays available on the market. These devices can measure energy (watt-hours), momentary power (wattage), and other parameters such as voltage, current, and apparent power. They provide customers with real-time data and help them understand their energy usage patterns.
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Energy-saving tips
Electric companies measure electricity consumption through meters usually located outside the customer's property. In the past, manual readings were taken, but now, electronic smart meters provide wireless access to power usage data in real-time.
Adjust Your Thermostat
Adjust your thermostat setting based on the season. During the winter, set your thermostat to 68 degrees Fahrenheit, and in the summer, set it to 78 degrees. When you are asleep or away from home, remember to lower or raise the thermostat setting to save energy and money. A smart thermostat can help you manage your heating and cooling system more efficiently.
Reduce Water Heater Temperature
Lower the temperature on your water heater to 120 degrees Fahrenheit. This will reduce your electricity usage and slow down buildup and corrosion in your water heater and pipes.
Switch to Energy-Efficient Appliances and Electronics
Look for the Energy Star label when purchasing new appliances and electronics. These products consume less energy than non-certified models. For example, Energy Star washers and dryers use 20% less energy. You can also enable power-saving mode on your electronics to decrease their energy usage.
Upgrade to LED Lighting
Replace traditional incandescent light bulbs with LED bulbs. LEDs use up to 85% less energy and have a much longer lifespan. This simple switch can lead to significant energy and cost savings over time.
Unplug Electronics When Not in Use
Turn off and unplug electronics such as computers, game consoles, and TVs when you're not using them. Even when powered down, some devices continue to draw a small amount of electricity if they remain plugged in.
Seal Air Leaks and Improve Insulation
Seal air leaks around doors, windows, chimneys, and utility cut-throughs. Add caulking or weatherstripping to prevent air leaks and improve your home's insulation. This will help retain heat during the colder months and keep your home cooler in the summer.
Utilize Natural Light and Heat
Open curtains on south-facing windows during the day to let in sunlight and naturally heat your home. Close the curtains at night to reduce heat loss through windows. Planting deciduous trees on the south side of your home will provide shade in the summer and allow sunlight during the winter.
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Frequently asked questions
Electric companies use electricity meters installed at customers' premises for billing and monitoring purposes. The most common unit of measurement on the electricity meter is the kilowatt-hour (kWh), which is equal to the amount of energy used by a load of one kilowatt (1 kW) over a period of one hour.
Here are some ways to lower your electricity bill:
- Turn off lights and unplug electronics when not in use.
- Lower the temperature on your water heater.
- Switch to energy-efficient appliances and electronics.
- Use smart technology, such as a smart thermostat, to manage your energy usage.
You can measure your electricity usage by using a smart meter, which provides real-time data on your power usage. You can also calculate your monthly energy usage using online formulas and compare your bills every month to track your kWh usage.











































