In Short : A CareEdge report states that a smart metering program could boost discoms’ revenue by ₹4 lakh crore over seven years. The RDSS scheme targets 25 crore smart meters by 2026, but progress lags. Smart meters enhance efficiency and reduce losses, yet adoption faces challenges. Policy support and faster implementation are crucial for maximizing benefits.
In Detail : A report by CareEdge Ratings highlights that implementing a smart metering program could generate an additional ₹4 lakh crore in revenue for power distribution companies (discoms) over the next seven years. This increase is attributed to improved billing accuracy, reduced losses, and enhanced collection efficiency facilitated by smart meters. However, the rollout of these meters has faced delays, slowing potential benefits.
The government’s Revamped Distribution Sector Scheme (RDSS) aims to install 25 crore smart meters across the country by March 2026, requiring an estimated investment of ₹1.25 lakh crore. As of January 2025, only around 2 crore smart meters have been deployed, significantly lagging behind the target. CareEdge estimates that only 25% of the initial goal will be met by the 2026 deadline, highlighting the challenges in scaling up the program.
Smart meters play a vital role in modernizing India’s power sector by enabling real-time energy monitoring, improving demand forecasting, and reducing electricity theft. By providing accurate consumption data and eliminating manual meter readings, they help streamline operations for discoms and reduce losses. Additionally, smart meters allow consumers to track and manage their electricity usage more effectively, promoting energy conservation.
Despite these benefits, the adoption of smart meters has been slow due to consumer resistance, operational difficulties, and delays in financial support. Many consumers are hesitant to switch to smart meters due to concerns over cost and reliability. At the same time, discoms face logistical hurdles in deploying meters at scale, particularly in rural areas where infrastructure challenges persist.
The report emphasizes that overcoming these barriers requires coordinated efforts from policymakers, discoms, and technology providers. Increased financial incentives, awareness campaigns, and stronger policy enforcement could help accelerate the installation of smart meters. Addressing operational challenges and ensuring a smoother transition will be key to maximizing the financial and operational benefits of the program.
If implemented effectively, the smart metering initiative has the potential to significantly improve the financial health of India’s power sector. By reducing inefficiencies and ensuring more accurate revenue collection, smart meters could play a crucial role in achieving the country’s energy efficiency and sustainability goals. However, timely intervention and focused execution will be essential to unlocking the full potential of this transformative technology.
