As terminal of the smart grid, smart meter has intelligent functions such as communication function, fault prediction and phase detection in addition to the basic metering function of the traditional meter in order to adapt to the use of new energy and smart grid. However, there is no unified standard for the selection of the basic core devices of smart meters. So this paper proposes a smart meter component selection scheme based on fuzzy analytic hierarchy process. Firstly this paper analyzes the functional requirements of the smart grid for smart meters in accordance with the development needs and business characteristics of smart grids,then sets criteria layer for the demand characteristics of different function module. Finally the optimal components required for smart meter. This method provides scientific basis for the selection of smart meter components and promotes development of smart grids.