The population boom across the West and Southwest is creating a growing challenge for public water utilities: ensuring adequate water supplies for expanding communities and for agriculture. Complicating the situation further are inefficient legacy systems and end-of-life water infrastructure that is rapidly deteriorating.
Fortunately, innovations in technology offer strategic, cost-effective opportunities to address water scarcity challenges while improving revenue streams. As municipalities face a wave of water meter replacements, many are finding smart meters to be a cost-effective and strategic investment.
There are four ways smart meter technology can deliver measurable benefits across water management and municipal operations.
1. Enable proactive leak detection to protect water supply
The time and resources required to conduct traditional meter readings delay leak detection and signs of waste. Smart meters provide real-time data that enable teams to immediately detect leaks, excessive use, and other issues remotely. This enables utilities to address problems proactively, reducing the volume of water lost.
2. Implement dynamic pricing to incentivize conservation
Beyond protecting existing water supply, smart meters can enable utilities to influence consumption behavior through flexible pricing strategies. For example, utilities can introduce premium pricing structures that kick in after detecting excessive usage. They can offer different pricing for potable and non-potable water. This pricing flexibility encourages strategic choices, helps manage demand, and generates additional revenue from high-volume users.
3. Improve operations while boosting cash flow
Digital smart meters that enable leak detection and dynamic pricing can also transform daily utility operations. Real-time usage data eliminates billing guesswork, ensuring heavy users pay proportionally while light users aren't overcharged. More frequent billing based on actual usage improves municipal cash flow. In addition, technology eliminates the need for manual readings, reducing vehicle costs and freeing up utility staff to focus on higher-priority infrastructure needs.
4. Generate accurate data for long-term water management
Finally, smart meters provide the granular consumption data necessary for strategic water planning. Understanding usage patterns, seasonal variations, and peak demand can help utilities make informed decisions about capacity planning, system expansion, and conservation programs—which are especially valuable when evaluating new developments.
Case study at silver city: 30 million gallons saved, $245,000 in revenue recovered
These four benefits aren't just theoretical, as shown by results from Silver City, New Mexico.
Silver City established a water conservation plan to sustain and conserve its municipal ground water supply. The plan identified meter replacement with leak detection as a necessary first step. However, the town lacked the funding to proceed.
Two years later, community leaders partnered with Yearout Energy (now Energy Systems Group) to find a solution. After conducting an audit of the town's infrastructure, the team devised a strategy for replacing 6,500 meters with smart-meter technology using savings from the project. Rather than requiring upfront capital or rate increases, the financing strategy leveraged the increased revenue accuracy from new meters to fund the entire $3.74 million project.
The results were significant: meter accuracy improved from 93.7% to 98.5%, the system saved nearly 30 million gallons of water annually, and the town recovered $245,000 in annual revenue. Read the full case study here.
A smarter way to finance meter infrastructure
One of the largest barriers to smart meter implementation isn't technology—it's capital. Purchasing meters off the shelf is expensive and inefficient. In fact, it often results in piecemeal implementation that fails to address community-wide infrastructure problems.
Working with a partner that provides comprehensive support—from initial assessment and design through construction and commissioning—can streamline the entire process while ensuring solutions are truly tailored to each community's unique infrastructure requirements. At Energy Systems Group, we can assist with financing strategies, such as identifying funding opportunities across departments, sourcing grants and rebates, or leveraging future revenue streams to support today’s investments.
Water scarcity isn't easing up, and aging infrastructure isn't getting younger. Smart meters represent more than upgraded technology; they are comprehensive tools for water conservation, revenue optimization, and operational efficiency.
Visit Energy Systems Group at energysystemsgroup.com to learn how innovative strategies can help your community address water management challenges without straining municipal budgets.
