The Differences Between Metering and Submetering 

If you own property or administer multifamily buildings, suburban districts, or other property units, you are likely already familiar with the terms metering and submetering. The master utility meter, typically associated with metering technology, represents one aspect, while the installation of multiple meters in the property characterizes submetering technology. 

With the advanced technologies available today, submetering provides more detailed information and allows for more precise allocation of billing costs compared to traditional metering, but let’s explore the key differences further. 

What is Metering? 

Metering refers to the process of measuring the total consumption of water, gas, or electricity resources for a particular premise. Usually, there is one master meter installed in a dedicated location by the utility provider, which measures the total consumption for that property. The master meter is typically owned, operated, and maintained by the utility company, so the landlord doesn’t need to address any disruptions personally, everything is managed by the utility company. 

In cases where a property has only one main meter, traditional billing methods are usually applied for the property owners. Utility companies rely on flat rates derived from the building’s master meter data or use ratio utility billing, which calculates utility costs based on industry-accepted formulas, considering apartment size, occupancy, layout, amenities, and other factors. However, these methods often lead to inadequate cost recovery and leave property owners burdened with utility expenses. 

What is Submetering? 

Submetering involves installing additional meters within a property or building to measure the consumption of utilities for specific areas, units, or individual tenants. It’s more like a strategic investment for multifamily property owners, building administrators, owners, and landlords, offering many advantages in the dynamic real estate market. These additional meters are referred to as submeters. Submetering allows for the measurement of utility usage for specific sections or entities within a larger property, such as individual apartments in a multifamily building, specific departments in a commercial building, or individual pieces of equipment in an industrial facility. Unlike the master utility meter, submeters are typically owned and maintained by the property owner or manager rather than the utility company. Submetering provides more detailed insights into utility consumption data and patterns within a property, enabling precise allocation of costs among residents or departments and promoting energy conservation efforts by identifying areas of high consumption. 

Billing in Metering and Submetering: 

Metering Billing is based on the total consumption recorded by the master utility meter. The utility provider bills the property owner directly for the total consumption, and it’s up to the property owner to determine how to allocate these costs among residents. Billing methods may include flat-rate billing, where tenants pay a fixed amount regardless of their individual usage, or ratio utility billing, where costs are divided among tenants based on factors like apartment size, occupancy, or other predetermined criteria. Metering billing tends to be simpler but may not accurately reflect individual usage patterns, leading to potential inequities in cost allocation. 

Submetering Billing is based on the actual consumption recorded by the additionally installed submeters in specific locations for each entity within the property. In this case, property owners can directly bill tenants for their specific utility usage. Submetering allows for more accurate billing, as tenants are billed based on their actual consumption rather than estimates or predetermined ratios. Submetering billing offers transparency and encourages conservation by making tenants or other property units more aware of their individual usage and costs. 

In summary, while metering billing relies on a single utility meter and often involves simplified billing methods, submetering billing provides more accurate, transparent billing by measuring individual utility usage within the property. 

Why is it Important to Submeter? 

Submetering these days comes with advanced technologies such as smart meters, high-end meter data management platforms, different network options (LoraWAN, NB-IoT, Mioty), sensors, and other hardware. With the end-to-end submetering solution, property owners such as multifamily buildings, commercial spaces, or industrial facilities can enjoy many benefits that submetering brings: 

• Financial Stability: By accurately tracking utility usage and billing tenants accordingly, submetering helps recover the costs associated with providing utilities, ensuring financial stability. 
• Compliance with Regulations: Submetering solution providers ensure that their equipment complies with market standards and operates within legal frameworks. 
• Increase in Property Value: Properties equipped with submetering systems may be more attractive to potential buyers, investors, or tenants, enhancing the property’s value. 
• Advanced Analytics and Issues Identification: Advanced submetering systems come with remote monitoring and control of your infrastructure. Smart meters and data management platforms allow property owners to track usage patterns over time, helping identify abnormalities or inefficiencies in utility systems promptly. Data management software can generate various reports, export data, check historical information, send notifications, integrate with third parties, and perform so much more. Most importantly, these capabilities enable property owners to achieve their specific goals and make better decisions based on precise data in daily changing situations.
• Fair Tenants Billing: Submetering allows accurate allocation of utility costs among different units, tenants, or departments based on actual usage, promoting fairness and transparency in billing. 
• Sustainable Resource Usage: Submetering encourages occupants to adopt energy-saving and water-conservation practices, leading to long-term savings and environmental benefits. 

In summary, submetering offers tangible benefits, including financial stability, increased property value, quick issue detection, accurate cost allocation, resource conservation incentives, and improved business operations efficiency, saving time and money. 

Conclusion: 

In summary, while metering involves measuring the total consumption of a utility for a property using a master meter, submetering involves installing additional meters within the property to measure consumption for specific areas or entities within that property. Submetering provides accurate consumption data and comes with advanced metering systems that provide necessary monitoring and reporting tools to prevent any water leaks, thefts, or abnormalities. Submetering also provides accurate invoices for tenants based on their water usage, which provides residents reliability on their property owners and gives awareness of their resource consumption data overall. 

For further insights into meter data management platform or how smart ultrasonic meters operate, explore our blog articles.