For countries pursuing sustainable development and energy efficiency, the use of smart meters is considered a first step in allowing residential consumers to remotely control their energy consumption, and a promising technology for conserving limited energy resources. However, despite the growing interest in smart meters, limited consumer awareness, knowledge, and understanding of these devices contributes to skepticism. This study thus developed an index to measure consumer propensity to adopt smart meters in residential buildings. Data obtained from a survey of energy use by Indonesian households were analyzed using structural equation modeling to determine the interacting factors in consumer acceptance of smart meters. Consumer perceptions, expectations, and intentions regarding the potential use of smart meters in Indonesia were also discussed. The findings of this study enhance understanding of consumer perceptions and behaviors, and can help decision makers and energy utility companies develop policies and strategies for a "one-size-fits-all" program related to smart meter applications in future residential buildings. (C) 2014 Elsevier Ltd. All rights reserved.