It is essential that UK consumers adopt energy saving
measures on a widespread scale to justify the expenditure that is being put into them, according to Datamonitor.
The analyst has looked at the costs of installing energy saving smart meters in the UK and in other countries including France, assessing the expenditure in terms of US dollars.
In France, a smart meter costs up to $35 (£22) to install; however, in the UK that figure almost doubles, reaching $65.
The reason is that the UK's implementation of smart meters is much more sophisticated, with roll-out across electricity and gas accompanied by the use of smart meter data management software and communications modules to report back to utility providers.
Jon Lane, energy director at Datamonitor, says: "These higher costs are only acceptable as the government has used carbon savings and an anticipated reduction in demand in its calculations."
However, the UK has already seen success in other energy saving initiatives where reductions on bills are used to offset the initial cost, including the Feed-in Tariffs scheme.