Smart Metering and iMSys

Smart Metering and iMSys – What Intelligent Metering Systems Are and Why They're Needed for Dynamic Tariffs and Aggregation

Smart meters (“iMSys”: intelligent metering system) are a key element of the energy transition. They not only allow you to monitor your electricity usage precisely but also form the foundation for smarter and more efficient energy consumption. This technology enables the use of flexibility that is essential in an energy market dominated by fluctuating shares of renewable energy.

In Germany, clear legal regulations exist to accelerate smart meter adoption. These rules ensure that both companies and private households can benefit from the advantages of this technology. Dynamic electricity tariffs and aggregation models are two core applications where smart metering is indispensable. But what exactly is behind this technology, and why is it so important, especially for businesses?

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What Is Smart Metering?

Smart metering refers to the use of intelligent meters that can capture electricity consumption, feed-in data, and grid status in real time and transmit it securely to authorized entities. These data form the basis for a future smart grid and the digitization of the energy transition. Smart electricity meters provide full transparency on your consumption and allow you to respond flexibly to changing electricity prices.

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Intelligent Metering Systems (iMSys) vs. Modern Metering Devices

Modern metering devices are digital electricity meters with a local display and data storage for up to 2 years. However, they cannot transmit data remotely, meaning manual readings are still required.

In contrast, intelligent metering systems (iMSys) include a "smart meter gateway" that securely transmits consumption data to the metering operator or energy supplier. This allows for high transparency and access to dynamic electricity tariffs. Only with automatically distributed, high-resolution data can dynamic billing take place.

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iMSys vs. IR-Based Meter Add-Ons

Older IR-based meter add-ons can also collect electricity usage data and transmit it via digital interfaces. However, these are based on outdated standards, are not certified metering devices, and do not produce billing-relevant data. They also don't transmit data to metering operators and can't support grid-relevant processes like energy balancing. Dynamic tariffs that rely on these data ignore fundamental energy system processes. Switching to an iMSys offers legally compliant and complete data integration.

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Advantages of iMSys

More than just consumption monitoring

iMSys provide timely and detailed consumption data, eliminate the need for manual readings, and enable precise monthly billing without estimated payments.

Financial benefits arise when an iMSys is combined with a dynamic tariff. If you shift usage to times of lower electricity prices, the 15-minute interval data becomes the basis for billing. Especially for businesses aiming to optimize costs, iMSys is an invaluable tool. All installations are handled by the metering operator.

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RLM Meters vs. iMSys

Differences and Applications  

LM (“registered load profile”) meters and iMSys serve different purposes. Both types record electricity consumption in 15-minute intervals. However, RLM meters also capture power peaks.

RLM meters are required for generation systems with an installed capacity over 100 kWp. Current regulatory frameworks do not allow iMSys for these systems; only smaller systems up to 100 kWp are eligible.

For electricity consumption over 100,000 kWh per year, RLM meters are mandatory. That’s why they’re often used in industrial settings with high energy usage. These consumers also pay additional grid fees for peak loads. Intelligent metering systems are especially valuable for smaller businesses that want to adjust their energy consumption dynamically and benefit from dynamic electricity tariffs. iMSys also come with significantly lower metering fees compared to RLM meters.

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Dynamic Electricity Tariffs and iMSys

Why smart meters are essential

Dynamic electricity tariffs adjust flexibly to price fluctuations on the electricity market. This means that electricity can be significantly cheaper at certain times of the day. This is exactly where intelligent metering systems (iMSys) come into play. Without a modern iMSys, your electricity consumption cannot be recorded in the required resolution or transmitted to the supplier in a timely manner, which is essential for dynamic tariffs.

As of 1 January 2025, grid fees will also be time-variable for certain cases such as home storage systems, heat pumps or electric vehicles, as defined by Section 14a of the EnWG. This allows even greater savings with an iMSys.

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Why Businesses Need Intelligent Metering Systems for Dynamic Tariffs

Businesses using intelligent metering systems can significantly reduce their energy costs. They can shift their consumption to periods with lower electricity prices. This is especially attractive for businesses with flexible production processes or self-generation, for example through photovoltaics or battery storage.

Without an intelligent metering system and precise consumption measurement, it is not possible to truly benefit from dynamic tariffs.

Aggregation and iMSys

The added value of intelligent metering systems

Aggregation enables you to sell the electricity you generate – for example from a solar PV system – directly on the electricity exchange via an aggregator, rather than feeding it into the grid at fixed tariffs. Intelligent metering systems (iMSys) are essential here.

They measure both your electricity consumption and feed-in and transmit this data reliably and in a timely manner to your aggregator. Especially in combination with home battery storage, the revenue potential increases.

Why intelligent metering systems are required for aggregation

To participate in aggregation, technical requirements must be met by the generation unit (see Section 10b EEG). These are all fulfilled by an intelligent metering system, as it records feed-in in 15-minute intervals for billing and balancing purposes, can provide real-time data in minute-level resolution and enables remote control of the system when combined with a control unit

For generation systems with an installed capacity of more than 100 kWp, RLM meters are required for electricity generation (see RLM Meters vs. iMSys). Current regulation does not allow the use of iMSys for these systems, only for smaller systems up to 100 kWp.

The iMSys ensures that all of this data is securely and reliably transmitted – forming the basis for successful aggregation.

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Advantages for Businesses in Aggregation

Businesses with PV systems can maximize their revenue by feeding electricity into the grid and selling it when exchange prices are high. Aggregation increases the profitability of the system. Smart meters are usually installed by the default metering operator, as systems above 7 kW are included in the mandatory rollout of intelligent metering systems. Alternatively, a system operator may commission a competitive metering operator to install one.

The Smart Meter Rollout in Germany and Section 14a EnWG

The introduction of smart meters is a central component of Germany's energy transition. The smart meter rollout has been enshrined in law to make energy consumption more efficient while also supporting the integration of renewable energy sources. For households and businesses, the smart meter is not only a helpful tool, but increasingly a legal requirement.

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Legal Framework for the Smart Meter Rollout

The rollout of smart meters in Germany is governed by the Metering Point Operation Act (Messstellenbetriebsgesetz, MsBG). By 2032, all households and businesses must be equipped with digital electricity meters, most of which will be intelligent metering systems (iMSys).

As of 2025, the mandatory rollout of iMSys applies to electricity consumers using 6,000 to 100,000 kWh per year, including controllable consumption devices under Section 14a EnWG and generation systems from 7 kW to 100 kW. The law sets clear deadlines and obligations to ensure full-scale implementation:

• 2025: At least 20% of relevant households must be equipped with smart meters.

• 2028: 50% of relevant households must be equipped.

• 2032: Final rollout target of 95% for all households and businesses.

• the mandatory rollout for consumers above 100,000 kWh/year and generation systems over 100 kW will start in 2028.

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Section 14a EnWG: Controllable Consumption Devices

A key driver of the rollout is Section 14a of the EnWG, which regulates the controllability of consumption devices such as heat pumps, EV chargers, battery storage systems, and other energy-relevant equipment. The aim is to safeguard grid stability by enabling grid operators to reduce the output of such devices when necessary.

• Controllable consumption devices (SteuVE): Devices such as heat pumps, EV charging stations, battery storage units, and cooling systems.

• Benefits for consumers: Customers who install controllable devices receive reduced grid fees as compensation for potential restrictions on electricity use.

• Grid stability: In the event of grid overload, the grid operator may reduce output to a minimum of 4.2 kW to ensure continued stability. The smart meter provides real-time grid condition data to identify critical situations.

• Control technology: In future, controllable devices will be operated via a combination of smart meter and control unit. Control signals will be transmitted through a highly secure IT infrastructure.

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Where Can I Get a Smart Meter?

Obtaining a smart meter is essential to benefit from dynamic tariffs or aggregation. There are several ways to get one.

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Default Metering Operators

Since 1 January 2025, default metering operators are obligated to install an iMSys upon customer request. These operators are usually linked to the local grid operator and are responsible for meter installation and operation within a grid area.

You can find your default metering operator on your latest electricity bill. Alternatively, visit the portal VNB.digital to identify your local grid operator. Their website will provide further information on metering services and contact options.

If the smart meter is installed upon customer request, the metering operator may charge a one-time fee of up to €100. Annual costs depend on electricity usage or system size.

By electricity consumption:

• Under 6,000 kWh: 30€/year

• 6,000–10,000 kWh: 40€/year

• 10,000–20,000 kWh or controllable loads under Section 14a EnWG (e.g. heat pump, wallbox, battery): 50€/year  

By system size:

• Up to 15 kWp: 50€/year

• Over 15 to 25 kWp: 110€/year

• Over 25 kWp: 140€/year

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Operating a control unit: additional €50/year (for more info, see the Federal Network Agency website).

To help you get started, we’ve compiled a list of online order forms for smart meter installations:

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(Note: This list is not exhaustive. All details are provided without guarantee.)

If the default operator cannot complete installation in time, customers can turn to a competitive metering operator instead.

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Competitive Metering Operator

Metering services can also be provided by competitive operators. These are not restricted to specific regions and operate nationwide.

Competitive operators are not bound by legal price caps and may charge higher fees for installation and service. You should check prices carefully before proceeding.

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The Future of Energy Management with Smart Metering

Smart metering and intelligent metering systems (iMSys) are essential tools that enable households and businesses to take control of their energy use. They offer transparency and flexibility by allowing real-time monitoring and help reduce costs through dynamic tariffs. iMSys are particularly valuable for businesses using renewables or participating in aggregation.

With legal foundations like the mandatory rollout under the MsbG and Section 14a EnWG, Germany is accelerating the full-scale deployment of smart meters. These meters are key to grid stability and the future of energy management.

In the coming years, the role of iMSys will continue to grow. The focus will be on deeper integration of renewables, dynamic pricing, and greater participation of consumers and businesses in the energy market. Technologies will evolve to make energy use more efficient, cost-effective, and sustainable.

Now is the ideal time to switch to smart metering and actively shape the future of energy management.