IoT based Electricity consumption monitoring

As IoT has evolved over the years, energy monitoring and management have become smart and quite efficient. The Internet of Things (IoT) seems a promising platform for smart energy management and electricity consumption monitoring. With a wide range of use cases and superior reliability in electricity consumption monitoring, IoT is definitely a technology worth exploring and learning about. Let us, in this article, try and understand how an IoT based electricity consumption monitoring system assists in simplifying and vastly improving energy monitoring. 

IoT Energy monitoring system includes planning and management of power consumption patterns in different settings such as residential and industrial. Internet of things (IoT) Energy Monitoring system is designed to monitor and optimize energy usage thereby improving the utilization of capacity, increasing business productivity, cutting down maintenance & manpower needs, and raising the reliability of energy equipment.

IoT-enabled sensors track consumption patterns and give insights into usage areas that are inefficient. These in turn help in the analysis of energy usage and its patterns. With these solutions, it is possible to manage and rationalize power consumption through complete control of energy data at the lowest level.

Electricity consumption monitoring

How does AN IoT based electricity consumption monitoring work?

Here’s a general overview of the architecture of an IoT based energy monitoring system:

The IoT based power consumption monitoring system consists of three layers. The bottom layer of the architecture consists of the hardware part which includes device sensors and smart meters.

Flexible connectivity enables these devices to get connected through wireless or wired networks. Smart Energy meters come with a host of high-level features such as smart monitoring and analysis of energy consumption based on parameters like power factor, power consumption, peak voltage, and power consumption. The versatility of meters allows them to be used with various monitoring targets. 

The middle layer takes care of the task of transmission of collected data to the gateway and then to a local computer or the Internet (cloud) using standard IoT connection protocols . Sensors can be placed in a much more flexible way at nearby spots or even at remote locations.

The top layer consists of the mobile or web application on which collected data is seen. This data is collected from the device or cloud and then sent to the associated software application or other enterprise systems including Manufacturing Execution Systems,  Building Management Systems (BMS), or Advanced Production and Scheduling systems (APS) for carrying out an exhaustive analysis of the data to derive actionable insights. 

Layers in electricity Consumption Monitoring

What do you get with an IoT based electricity consumption monitoring system?

Power consumption monitoring using IoT provides insights that can help you to make your electricity usage efficient and cost-optimized. Moreover, with IoT, Scheduling of ON and OFF of appliances can be done so that if you forget to turn off your AC or Geyser while leaving home, it turns off automatically.

Advanced analytics

IoT solutions based on emerging technologies such as artificial intelligence and machine learning help us get smart and useful insights. With the help of IoT, we are able to get insights into vital energy parameters such as power interruption patterns, voltage and frequency trends, etc. The power of advanced analytics filters the noise from the vast data to make it actionable. This opens the doors to real-time alerts and automated optimization of energy usage patterns.

Real-time energy monitoring

In the business/industrial setting, IoT solutions integrated with machine learning can help us keep track of energy compliance within business processes. With IoT, you get superior energy management that guides you in better energy quality control on your devices to bring down costs, drive efficiencies, and cut down on the environmental effects. It also proves quite useful in researching and understanding the main reasons for inefficiencies in energy usage and areas that can easily be improved. In this way, it helps save precious resources such as time and manpower.

Centralized IoT dashboard for power consumption

Predictive analysis with the power of artificial intelligence and machine learning enables real-time updates if a machine needs to be repaired/replaced for achieving energy usage optimization. This data is based on analysis done from data in the centralized dashboard of an IoT-based electricity consumption monitoring system. 

Smart and customized reports of consumption patterns

All the reports on energy monitoring and usage optimization are readily available with just a single click. Data concerning specific parameters and device performance is continuously sent by the real-time energy monitoring system, which can be incorporated into analytical reports and calculated to develop efficiency-boosting operations. With a customizable report on energy usage and consumption, you can remotely identify & proactively assess issues to reduce maintenance costs and extend asset life.

Power Consumption Monitoring of Air conditioners

Smart Office Automation helps save energy. IoT empowers office appliances, like Coffee machines, Air conditioners, and Lights, to act smartly and respond to the needs of employees.

In Multi-Storey buildings and Offices, it becomes very important to monitor the power consumption of ACs.

The Electricity consumption in a building is most affected by Air Conditioning Units. If these are monitored, then it can save electricity efficiently.

Monitoring of ACs can be done wirelessly or with the LAN as per the requirement. If the building has fewer floors and has uninterrupted WiFi connectivity then, then wireless monitoring will be a better Choice.

However, in large Office Buildings and Business parks, Controlling and Monitoring ACs through LAN is a better choice, as several ACs can be connected through one Router using different Switches on every Floor.

AC Power consumption Monitoring through LAN

Benefits of electricity consumption monitoring system:

Cost Savings

IoT energy management solution helps in the reduction of energy spending in residential/business settings and also cuts down operating costs and manpower. You have the ability to predict the consumption pattern of energy and make decisions accordingly regarding your budget and plans.

Higher energy efficiency

The data collected by sensors can be used for real-time control of air-conditioning and lighting levels. The application of IoT in energy monitoring and management in the form of smart sensors and detectors reduces overall energy consumption.

Remote monitoring

Cloud access allows those responsible to remotely monitor and regulate their energy systems in real-time.  It gives you the power to identify, track, and understand your energy usage and to report on your performance over time.

Insightful reports

Data regarding specific parameters and device performance of the energy system is continuously transmitted by the real-time energy monitoring system, which can be measured into analytical reports and calculated to develop efficiency-boosting operations.

Energy consumption pattern

Dashboard for electricity consumption monitoring provides reports, data charts, and visualization which helps you to comprehend the information easier. These reports help to track operational inefficiencies.


IoT energy management solutions provide easy accessibility, usability, and management control to avoid any mishaps. You can also get proactive alerts for asset failure situations.

Challenges in an IoT based electricity consumption monitoring:-


The integration of your new IoT connection to an existing legacy system is a challenge due to technology generation gaps and modernization of existing infrastructure is required.

Cyber security and data privacy

There is a huge volume of important consumer data involved in this type of setup. Cyber security presents itself as a potent challenge to maintaining the sanctity of information systems including data used and exchanged over the IoT-based energy monitoring system. Any breach, accidental or malicious, into this data can turn out to be disastrous for the consumers and tarnish the reputation of the company.

Integration of the IoT system with existing platforms

Most of today’s electrical power distribution infrastructure is not compatible with the existing machinery and equipment. The task of integrating IoT technology with existing platforms is thus quite challenging for any company. The whole situation acquires greater complexity in the case of the energy sector owing to the complexity of existing infrastructure.

Also Read: IoT based Electricity Monitoring and its benefits.


The above points and paragraphs reflect the role IoT can play in an efficient energy management system. If you implement it as per the best standards, you are bound to save money through the energy efficiency that you get from a well-planned IoT-based energy monitoring system. 

PsiBorg, an IoT service provider, is a leader in crafting IoT based energy monitoring solutions suited to your needs. We serve a wide spectrum of sectors where IoT automation and remote monitoring can transform the business and its processes.

Do reach out to us if you need an IoT solution to automate various tasks remotely for home/office or industry.

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