Smart Meter Mandate 2026: Who's Required, What It Costs, What's Next

Germany's smart meter mandate has applied since January 1, 2025, to end consumers with an annual consumption above 6,000 kilowatt-hours, to PV systems from 7 kilowatts of capacity, and to controllable consumption devices such as heat pumps from 4.2 kilowatts of connection capacity. By the end of 2032, the law requires 90 percent of all mandatory cases to be fitted with a smart metering system, and the federal government wants to move that deadline forward to 2030 in the summer of 2026. For housing companies, this legal framework decides directly how much consumption data becomes available and which tariff options open up across a portfolio.

For owners and managers of larger portfolios, the real question by now is less "whether" than "when, and at what cost". The answer depends on the consumption thresholds at each individual meter point, on how quickly the responsible metering point operator is rolling out devices, and on whether a property is managed as a bundle or meter by meter.

Three factors decide in 2026 how urgent this topic becomes for a portfolio.

Who is required to install a smart meter in 2026?

Three groups fall under the mandate: end consumers with more than 6,000 kilowatt-hours of annual consumption, operators of generation systems such as photovoltaics from 7 kilowatts of capacity, and connection users with controllable consumption devices from 4.2 kilowatts under Section 14a of the Energy Industry Act (EnWG). What counts toward the consumption threshold is not a single year but the average of the last three recorded annual consumption values per meter point, as set out in Section 30 of the Metering Point Operation Act (MsbG).

Controllable consumption devices cover every system a grid operator is allowed to temporarily throttle during grid bottlenecks.

De minimis threshold: The 4.2 kW mark has applied as a de minimis threshold under Section 14a EnWG since January 1, 2024. Smaller devices, such as a standalone balcony solar unit or a low-power wallbox, do not on their own trigger the smart metering system requirement.

Large consumers run on a different timeline. Anyone using more than 100,000 kilowatt-hours a year, or operating a generation system above 100 kilowatts, only enters the mandatory rollout from 2028 under Section 45 MsbG. Portfolio operators with very large commercial units or central heat pump systems should therefore check the exact assignment at each meter point rather than looking only at the property as a whole.

When does the mandate really apply, and what does the rollout roadmap to 2030 look like?

Legally, the mandate has been running since January 1, 2025, but in practice the rollout is well behind schedule. As of December 31, 2025, the Federal Network Agency reported that 23.3 percent of the legally mandatory installation cases had a smart metering system in place, meeting the statutory interim target of 20 percent. Measured against all roughly 56.5 million meter points in Germany, though, the rate stood at only 5.5 percent.

A supervisory action from spring 2026 makes clear that far from every metering point operator has met the requirement.

Regulators step in: On March 27, 2026, the Federal Network Agency opened supervisory proceedings against 77 metering point operators that had missed the 20 percent quota by the end of 2025. Under the current MsbG, 90 percent of all mandatory installation cases must be equipped by the end of 2032.

Politically, that target date is already shifting forward. In early July 2026, the coalition committee of CDU, CSU and SPD announced plans to move the 90 percent mark from 2032 to 2030, paired with a still-unspecified, lower-cost "Smart Meter Light" for connections outside the mandate. As Haufe Immobilien reports, this tightening has not yet been passed into law at the time of writing. For housing companies, the practical takeaway is this: anyone planning now should size their meter landscape against the tighter 2030 outlook rather than the still-current 2032 deadline.

Modern metering device, smart metering system, smart meter gateway: what's the difference?

"Smart meter" is an everyday shorthand for two technically different devices. A modern metering device (mME) is a digital electricity meter with no communication link of its own; a smart metering system (iMSys) only exists once a BSI-certified smart meter gateway transmits the metering data in encrypted form.

The terms in short: An mME measures digitally without transmitting anything. An iMSys consists of an mME plus a smart meter gateway and sends the readings on in encrypted form. Only the iMSys satisfies the mandate above 6,000 kWh of consumption, above 7 kW of PV capacity, and for controllable consumption devices.

For housing companies, this distinction is more than a matter of definitions. Whether a meter point already carries an iMSys or "only" an mME decides directly whether quarter-hourly consumption data is even available, and whether dynamic tariffs or automated heat pump control are technically possible at all.

What does the mandatory smart meter cost, and who pays for the price caps?

Fixed statutory price caps apply to the primary metering point operator, staggered by consumption or by system capacity. The connection user typically bears these caps, and in rented properties they are usually passed on through utility costs.

This official table from the Federal Network Agency has stood unchanged since the MsbG amendment of February 2025. Since that same date, the primary metering point operator may charge no more than €50 gross per year, on top of and separate from the price cap for the metering system itself, for installing and operating the control device required under Section 14a.

This cap only applies, though, as long as the primary metering point operator, usually the local grid operator, handles the metering point operation. If an owner chooses a competitive metering point operator instead, the statutory price caps no longer apply and pricing becomes freely negotiable, as confirmed by the Verbraucherzentrale Niedersachsen. For portfolio operators, a close comparison pays off wherever a competitive provider offers additional services in return, such as submetering data transmission.

PV systems and the Solar Peak Act: why the 7 kW threshold could soon drop

For PV systems, a second rule adds real economic weight on top of the smart meter mandate. Since February 25, 2025, new systems from 7 kilowatts upward that lack a smart metering system may permanently feed in no more than 60 percent of their rated capacity.

Hidden costs without a smart meter: The feed-in cap under the Solar Peak Act only lifts once the smart metering system is installed and the grid operator has completed a successful remote-controllability test, according to Logic Energy. Until then, part of the energy generated simply goes unused, even though the system is already connected to the grid.

The threshold itself is also in motion. The cabinet draft for the EEG amendment of July 29, 2026, proposes lowering the mandatory threshold for PV systems from 7 to 2 kilowatts, which according to reduco.ai would bring even smaller balcony systems and rooftop installations under the mandate from 2027. The legislative process is still ongoing at this point, and no final version has been passed. For portfolios with PV expansion plans, that means anyone planning new systems between 2 and 7 kilowatts over the coming years is better off specifying an iMSys from the start rather than retrofitting one later.

What the mandate means for housing companies and metering service providers

For portfolio operators, the smart meter mandate shifts the focus from the individual unit to the property as a whole. Since early 2024, the property model under Section 6(6) MsbG has allowed a building owner to choose a single metering point operator for all of a property's electricity meter points, provided every meter point is fitted with a smart metering system and the metering point operation is bundled with at least one other utility such as gas, district heating or heat supply, as VdW Bayern explains in its rundown of the GdW legislative process.

The smart meter gateway is technically more than a plain electricity meter. As a chargeable additional service, the metering point operator may also use it to transmit billing-relevant metering data from a property's submetering system under the German Heating Costs Ordinance. The article on submetering software for digital consumption capture and billing describes how this data can then be recorded digitally and billed automatically.

On the energy side of a portfolio, the rollout opens up a further lever. Since January 1, 2025, every electricity supplier must offer at least one dynamic tariff, a requirement that previously applied only to suppliers with more than 100,000 customers. Using such a tariff requires a smart metering system with quarter-hourly consumption recording; a modern metering device is not sufficient, as Solarwatt explains. Only with this data basis can heat pumps and storage systems be run in step with favorable wholesale electricity prices, as described in the article on electricity price optimization for heating systems. Remotely readable consumption data from the iMSys also provides the basis for spotting faults earlier during ongoing operation, a connection explored further in the article on heating monitoring in multi-family buildings.

The rollout gap is real: what portfolio operators should plan for now

A rate of 23.3 percent among mandatory installation cases sounds like solid progress, yet it still covers only a fraction of all meter points nationwide. For a portfolio, that means a meter point can already count toward the legal mandatory group today and still wait years for its smart metering system, simply because the responsible metering point operator is itself behind schedule.

Whoever manages this gap actively gains a head start on data availability, dynamic tariffs and sector coupling the moment the meters are actually installed. In practice, that means sorting the meter points in your own portfolio against the thresholds covered in this article, coordinating timelines with each metering point operator, and checking whether the property model could deliver faster, more uniform equipment for individual buildings than a case-by-case rollout would.

Frequently asked questions about the smart meter mandate

For a rented property, does the 6,000 kWh threshold apply per unit or to total consumption?

The threshold applies to consumption at each individual meter point, not to the property's total consumption. Every unit with its own electricity meter is checked separately against the 6,000 kWh mark, based on the average of the last three recorded annual values.

Is a modern metering device enough to use a dynamic electricity tariff?

No, a modern metering device alone is not enough. Dynamic tariffs require a smart metering system with quarter-hourly consumption recording, since only that level of detail allows hour-by-hour price differences to be billed correctly.

Can I choose a metering point operator other than the primary one as an owner?

Yes, the law allows the free choice of a competitive metering point operator. Doing so means the statutory price caps no longer apply, and pricing instead becomes a matter of free negotiation between owner and provider.

What happens if a new PV system above 7 kW doesn't yet have a mandatory smart meter?

The system may permanently feed in only 60 percent of its rated capacity as long as no smart metering system is installed. This cap lifts automatically once the metering system is in place and the grid operator has completed a successful remote-controllability test.

Is the cost of the control device billed separately from the price cap for the metering system?

Yes, for the control device required under Section 14a, the primary metering point operator may charge no more than €50 gross per year in addition. This amount comes on top of the regular price cap for the modern metering device or the smart metering system.