What is electrical submetering?

Electrical submetering is a system that measures the energy consumption of individual units within a larger property or building. It differs from traditional metering, which typically only measures overall energy usage for an entire building. With electrical submetering, each unit has its own dedicated meter, allowing for precise tracking and measurement of electricity usage.

This technology can be applied to various types of properties such as apartments, commercial buildings and industrial complexes. The data collected by these power meters can be used for billing purposes but also has many other applications such as identifying areas where energy-saving improvements could be made.
Electrical submetering provides numerous benefits to both landlords and tenants alike, making it an increasingly popular choice in today’s world where sustainability and cost savings are top priorities.

Benefits of Submetering

1. Accurate Billing:

With electrical submetering, tenants are billed based on their actual energy consumption rather than being charged for an estimated amount based on average consumption.

This means that tenants pay only for what they use, making it a more equitable and cost-effective solution. Moreover, with accurate billing facilitated by submeters, landlords can avoid disputes over incorrect electricity bills from tenants who may question charges they believe to be excessive.

Accurate billing through electrical submetering also encourages energy savings as occupants become more aware of their power usage habits and strive towards reducing wastage. By adopting this method of measuring energy usage, both renters and property owners stand to gain substantially from its efficiency while promoting sustainability overall.

2. More data for measurable changes:

Electrical submetering provides building owners with a wealth of data that they can use to make more informed decisions about energy usage and efficiency. By installing submeters on individual circuits, you can get detailed information about how much energy each tenant or department is using, allowing you to track trends over time and identify areas where improvements can be made.

For example, if one tenant is consistently using more electricity than others in the same building, it may indicate that they have equipment that is not as efficient as it could be. With this information in hand, building owners can work with tenants to identify ways to reduce their energy consumption and save money on utility bills.

3. Fast ROI:

Fast ROI is one of the main benefits of electrical submetering. By installing submeters, property owners can quickly see a decrease in energy consumption and costs, resulting in a fast return on investment.

Submetering allows for the identification of inefficiencies within a building’s electrical systems, enabling these issues to be addressed promptly. This results in significant cost savings as electricity usage decreases. Not only does this lead to financial benefits, but it also promotes sustainable practices by reducing energy waste and carbon emissions.

4. Increased property assets value:

One of the most significant benefits of electrical submetering is that it can increase your property assets’ value. This is because submetered properties are more attractive to potential buyers or renters who want to save energy and reduce their carbon footprint.

When a building has a submetering system in place, it demonstrates that the owner takes energy efficiency seriously. It also shows that tenants have control over their electricity usage and expenses, which is increasingly important for sustainability-conscious consumers.

Additionally, buildings with individual metering systems command higher rental rates and sales prices than those without them. In fact, some studies suggest that submetered properties can sell for up to 20% more than non-submetered ones.

5. Environment protection:

Electrical submetering not only benefits property owners and tenants with accurate billing and measurable data, but it also contributes to protecting the environment. By installing submeters in each unit of a multi-tenant building or commercial space, energy consumption can be closely monitored and controlled.

With this information readily available, property managers can identify areas of high energy usage and implement changes to reduce waste and lower overall energy consumption. This not only reduces costs for tenants but also decreases the carbon footprint of the building. In addition, electrical submetering allows for better tracking of renewable energy sources such as solar panels or wind turbines.

With submeters installed on these systems, property managers can accurately measure how much energy is being generated and used within the building.

Common Submetering Applications

Submetering can be applied to a wide range of properties and industries, from multi-unit residential buildings to commercial and industrial facilities.

Residential Sector: In the residential sector, submetering is commonly used in apartment complexes where each unit has its own meter for measuring electricity consumption. This allows for accurate billing based on actual usage rather than dividing the total bill equally among all tenants.

Commercial Sector: In this sector, submetering can help businesses monitor energy usage in different areas of their facility such as lighting or HVAC systems. This data can then be used to identify opportunities for energy efficiency improvements and cost savings.

Industries: Another common application of submetering is in industrial settings where large amounts of electricity are required for manufacturing processes. Submetering allows companies to track energy consumption at specific machines or production lines, enabling them to optimize operations and reduce costs.

Beyond these examples, there are countless other applications of submetering across various industries including healthcare facilities, universities, government buildings and more. Any organization that wants greater visibility into its energy use can benefit from implementing a submetering system.


By implementing electrical submetering, property owners and managers can enjoy a wide range of benefits. From accurate billing to increased asset value, submetering provides valuable insights and data that can help make informed decisions about energy usage.

Not only does it benefit the bottom line financially but also helps protect the environment by reducing unnecessary waste. As technology continues to evolve, so too will our ability to measure and monitor energy consumption. Submetering offers a practical solution for those looking to optimize their electricity usage while minimizing costs.

By utilizing this innovative system, businesses can become more sustainable while simultaneously improving financial performance.

Ayush Bhansin

Ayush Bhansin has a degree in General Studies focusing on Interdisciplinary Sciences from Harvard University and has been a versatile contributor and analyst for 12 years. He offers a broad perspective on topics ranging from technology to lifestyle. His previous experience includes roles in market research and as a freelance journalist. He has brought his broad knowledge to various general content, providing insightful analysis and commentary. He is an emerging technology enthusiast and actively participates in various intellectual forums. He is also a classical music aficionado and enjoys exploring different culinary traditions.

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