India's 25 Crore Smart Meter Dream Hits A Deadline Crunch, Installations Must Accelerate To 2.5 Lakh Daily To Meet 2028 Goal

Mumbai: India must accelerate smart meter installations to nearly 2.5 lakh units daily to achieve its ambitious target of 25 crore installations by March 2028, according to a CareEdge Ratings report. The required pace is more than 2.5 times the approximately 99,000 meters installed daily during FY26.

Installation Progress

Around 6.5 crore smart meters had been installed nationwide by April 2026, representing approximately 26 per cent of the overall target. Annual installations increased from 48 lakh in FY24 to 1.47 crore in FY25 and 3.63 crore in FY26, reflecting improving implementation.

State Performance

Maharashtra leads with approximately 1.1 crore installations, accounting for 17 per cent of cumulative deployment. Together, Maharashtra, Bihar and Uttar Pradesh represent nearly 47 per cent of installed smart meters. However, progress remains uneven. Uttar Pradesh has completed around 32 per cent of sanctioned installations, compared with 52 per cent in Bihar.

Revenue Potential

CareEdge Ratings estimates that comprehensive smart meter deployment could generate approximately ₹1.84 lakh crore in additional cumulative revenue over five years ending FY31. The gains would come through improved billing, stronger collections and reduced Aggregate Technical and Commercial (AT&C) losses.

Efficiency Gains

AT&C losses declined from 20.73 per cent in FY20 to 15.04 per cent in FY25. Billing efficiency reached approximately 88 per cent, while collection efficiency stood near 97 per cent. Smart metering could lift billing efficiency to 97–98 per cent and collections beyond 99 per cent under prepaid systems.

Prepaid Challenge

Despite substantial installations, only 9 per cent of smart meters operated in prepaid mode as of April 2026. Nearly 89 per cent of electricity bills use actual readings, but only 49 per cent rely on automated readings.

Execution Outlook

CareEdge Director Ravleen Sethi emphasised that financial benefits depend on integrating accurate readings with billing systems and enabling consumers to manage electricity consumption effectively.

Disclaimer: This report is based on CareEdge Ratings findings and is intended for informational purposes only.

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