Beatrice Lang
Sub-metered electricity is a system that allows landlords, property management firms, and other multi-tenant property owners to bill tenants for their individual electricity usage. This is done by installing individual meters in each unit to measure and record the actual utility usage. Sub-metered electricity is ideal when you need to accurately track energy consumption for billing purposes, allocate costs to specific tenants, and optimize energy usage for efficiency. It encourages energy conservation as tenants become more aware of their consumption patterns and are charged for exactly what they use.
Characteristics and Values of Sub-metered Electricity
| Characteristics | Values |
|---|---|
| Definition | Submetering is a system that allows a landlord, property management firm, condominium association, or other multi-tenant property to bill tenants for individual measured utility usage. |
| Purpose | To track energy usage within specific areas, departments, or systems inside a building for more accurate billing and energy management. |
| Benefits | Encourages energy conservation, provides detailed energy usage data, helps identify areas to reduce energy consumption, and leads to potential savings. |
| Usage | Submeters are commonly used for electricity, but can also be used for natural gas, water, and non-utility expenses like trash, cable, parking, and storage. |
| Types | True submetering involves installing individual meters in each unit, while Ratio Utility Billing (RUBS) calculates utility bills based on industry-accepted formulas when installing meters is impractical or expensive. |
| Costs | Submeters have upfront and ongoing costs for installation and maintenance, which should be weighed against potential savings. Some companies offer rebates and monthly billing services for submeters. |
| Billing | Submetering allows for fair allocation of utility costs by charging tenants for their exact usage. Building management receives a total monthly bill from the utility company and then bills tenants based on sub-meter measurements. |
| Technology | The latest trend is Automatic Meter Reading (AMR), which uses electronic means such as handheld computers, radio, fixed network systems, or Wi-Fi to transmit data for billing. |
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What You'll Learn
Submetering for billing
Submetering is a system that allows landlords, property management firms, and other multi-tenant property owners to bill tenants for their individual measured utility usage. This is done by installing individual water meters, gas meters, or electricity meters in each unit, allowing property management to measure and record each resident's actual utility usage.
Submetering is ideal when you need to accurately track energy consumption for billing purposes, allocate costs to specific tenants, or optimize energy usage for efficiency. It provides detailed energy usage data, helping to identify areas where energy consumption can be reduced, leading to potential savings.
In cases where installing meters is impractical or too expensive, ratio utility billing (RUBS) is used. This calculates utility bills based on industry-accepted formulas, taking into account unit size, occupancy, layout, and amenities. With RUBS, the landlord's master utility bill is divided among residents using variables such as the number of occupants and the square footage of each unit.
The latest trend in submetering is Automatic Meter Reading (AMR), which uses technology to transmit meter readings to a central location for billing purposes. This can be done via Wi-Fi, cellular, or Internet connections.
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Tracking energy usage
Understanding Submetering
Submetering is a system that goes beyond the basic metering of total energy usage for a building. It involves installing individual meters for utilities like water, gas, or electricity within each unit or specific area of a building. These submeters track energy usage for that particular space, providing precise data on energy consumption.
Benefits of Submetering for Tracking Energy Usage
Submetering offers several advantages over traditional metering when it comes to tracking energy usage:
- Accuracy in Billing: Submetering enables property owners or managers to allocate costs fairly among tenants or departments. By measuring individual usage, submeters ensure that tenants are billed precisely for their energy consumption, promoting transparency and equity.
- Energy Conservation: Submetering encourages tenants to become more energy-conscious. When tenants are charged based on their actual usage, they are incentivized to reduce unnecessary energy consumption, leading to potential cost savings and promoting environmentally friendly practices.
- Identifying Inefficiencies: By tracking energy usage within specific areas or systems, submeters help identify inefficiencies or high-consumption areas. This information is valuable for implementing conservation measures, renovating, or optimizing energy usage to enhance overall energy efficiency.
- Cost Savings: Submeters provide detailed energy usage data, allowing property owners or managers to identify areas where energy consumption can be reduced. This can lead to significant cost savings, especially in large buildings or facilities with multiple tenants.
- Departmental Allocation: In universities or commercial buildings, submeters help track energy usage per department or area. This enables better energy management and cost allocation, ensuring that each department is responsible for its energy usage and costs.
Implementing Submetering
When implementing submetering, it is essential to consider the upfront costs of purchasing and installing the meters, as well as ongoing maintenance expenses. Additionally, the latest trend in submetering is Automatic Meter Reading (AMR), which utilizes electronic means, such as handheld computers, radio, or internet connections, to collect data and facilitate billing processes.
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Energy conservation
Sub-metering is a system that allows landlords, property management firms, or other multi-tenant property owners to bill tenants for their individual measured utility usage. This is done by installing individual meters for water, gas, or electricity in each unit, allowing property management to measure and record each resident's actual utility usage.
Sub-metering is a great way to conserve energy. Firstly, it creates an awareness of energy conservation among landlords and tenants. When tenants are aware that their energy usage will be measured and billed, they are more likely to be mindful of their consumption and take steps to reduce it. This can lead to lower energy costs and a reduced environmental impact.
Additionally, sub-metering can help identify areas where energy consumption can be reduced. By providing detailed data on energy usage, landlords and tenants can locate high-consumption areas and implement changes to lower usage. This may include simple measures such as turning down the heat or turning off lights, or it could involve more significant changes such as installing energy-efficient appliances, light bulbs, or windows.
For example, traditional incandescent light bulbs consume excessive electricity and have shorter lifespans than energy-efficient alternatives. Energy Star-certified LED light bulbs are a government-backed, energy-efficient alternative that can help reduce electricity usage. Similarly, window shades, shutters, or awnings can provide extra insulation, leading to better energy conservation and management.
In some cases, an energy audit may be conducted to identify areas of improvement. A professional auditor will inspect the building's insulation, electrical lines, furnace, water heater, and ducts to locate any leaks or sources of energy loss. They may also perform a blower door test to assess air leakage and indoor air quality.
Overall, sub-metering is a valuable tool for energy conservation, as it encourages tenants to be mindful of their energy usage and provides data to help landlords and tenants make informed decisions to reduce their environmental impact and lower their utility costs.
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Installation and maintenance costs
Submetering is a utility billing method that involves installing additional meters within a building to monitor the electricity consumed by individual units or departments. This enables each tenant or department to be billed separately based on their actual usage, providing a fair and accurate representation of their electricity costs.
The installation and maintenance costs of submetering can vary depending on several factors, including the type of submeter, the number of units, and the complexity of the installation.
For example, in a residential context, the cost of installing submeters in each unit can range from $400 to $500 per unit, as mentioned in the context of Chicago apartment buildings. This cost may be influenced by factors such as the size and layout of the building, the number of units to be metered, and the accessibility of the installation site.
Submeters can be manual or networked. Manual submeters are similar to traditional electrical and gas meters, providing readings on utility usage in different parts of the building but without software integration. Networked submeters, on the other hand, are integrated with software that consolidates data and presents it uniformly. They can be programmed for automated billing, saving time and effort for building owners.
The installation process typically involves an initial meter audit, analysis, and documentation, which can take around two to three days. This is followed by the implementation of the metering strategy, with costs depending on the specific recommendations and requirements. It is recommended to perform the installation during out-of-hours to minimise disruption, especially in occupied buildings.
Regarding maintenance, both manual and networked submeters require routine upkeep. Manual submeters need to be checked by professionals such as plumbers, electricians, or HVAC experts, while networked submeters may require additional support from contractors and IT teams.
While submetering can provide valuable insights into energy consumption and promote sustainability, the installation and maintenance costs should be carefully considered. In some cases, particularly in smaller residential buildings, these costs may outweigh the benefits of accurately billing individual tenants. However, for larger buildings with multiple units, the cost savings and improved energy efficiency can make submetering a worthwhile investment.
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Utility cost allocation
Metering
Building meters, often located on the outside of a building or in basements, measure the total energy consumption of the entire building. This information is then used by the utility provider to generate a utility bill for the building.
Submetering
Submetering, on the other hand, involves installing individual meters within specific areas, departments, or systems inside a building to track energy usage more granularly. Submeters can measure electricity, water, gas, steam, or BTU usage. This allows for more accurate billing and energy management, especially in multi-tenant properties.
In multi-tenant dwellings, submetering enables landlords or property management firms to bill tenants for their individual utility usage. This ensures fairness in cost allocation, as tenants are charged precisely for what they consume. Submetering also encourages energy conservation, as tenants become more aware of their consumption patterns.
RUBS (Ratio Utility Billing Systems)
In cases where installing submeters is impractical or expensive, an alternative method called RUBS is used. RUBS allocates utility costs based on square footage, the number of occupants, or other cost ratios. This method is commonly used in conjunction with submetering for different utility types within a single property.
Benefits of Submetering
Submetering provides several benefits, including:
- Fair and accurate cost allocation to tenants
- Encouragement of energy conservation by making tenants aware of their consumption
- Identification of areas where energy consumption can be reduced, leading to potential savings
- Improved energy management and efficiency within the building
Considerations
While submetering offers advantages, it is important to consider the upfront costs of installation and maintenance. Additionally, in certain cases, there may be challenges in accessing meters for reading or plumbing and electrical systems that are not suitable for submetering.
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Frequently asked questions
Sub-metered electricity is a system that allows landlords or property management firms to bill tenants for their individual electricity usage. This is done by installing a submeter within a building to measure the energy usage of specific areas, departments, or systems.
The local power company provides a monthly bill based on the readings from the master meter. The building management then charges each tenant their share of the expense according to the readings on their respective submeter.
Metering measures the total energy usage of a building, while sub-metering tracks energy usage within specific areas of a building.
Sub-metered electricity provides more accurate billing and encourages energy conservation as tenants are charged for their exact usage. It also helps identify areas where energy consumption can be reduced, leading to potential savings.
The upfront costs of sub-metered electricity can be a disadvantage as building owners must pay for the device and installation. Additionally, there may be challenges in accessing meters for reading, or the building's electrical systems and plumbing may not be suitable for sub-metering.
