Australian homes will eventually have so-called smart meters providing electricity consumption updates every half-hour.
It may take up to a decade or longer under a plan agreed by the federal and state governments.
Federal Energy Minister Martin Ferguson said he hoped half of all households would have the smart meters by 2017.
"It's expected that by 2017, on the basis of this rollout, over half of the Australian meters will be replaced by smart meters," Mr Ferguson told reporters in Canberra.
He said consumers stood to benefit from the devices.
"Smart meters can provide major benefits for consumers, empowering them to take control of their energy bills by providing better information, new choices in off-peak pricing to save money, and new services to manage appliances and increase their energy efficiency."
Homes in Victoria and NSW will be the first to have the meters installed.