The dramatic drop in the price of equipment and services and the increase in efficiency candidate Satellite Communications (SATCOM) as an interesting choice for the deployment of major Smart Grid scenarios. As a matter of fact, SATCOM providers are offering more and more services dedicated to machine-to-machine communications and they expect actors in the smart grid domain to be among the main users. However, to fruitfully integrate this communication technologies into smart grids, it is of utmost importance to understand strengths and limits of the available satellite features in light of smart grid communication requirements and recent advancements in the SATCOM arena. Starting with a review on the latest trends in the satellite market for machine-to-machine communications, relevant smart grid requirements are classified and mapped to the most significant smart grid applications. Then, various features and trends of SATCOM are discussed to take stock of their suitability and to outline future challenges for the exploitation of SATCOM systems in smart grids.