While metering is an effective way to understand your overall building or facility energy bills, you must know the differences between metering and submetering and why submeters are required to measure specific outcomes and energy efficiencies.
Building meters measure the energy delivered from the utility into your multifamily building. These meters are called metering or utility metering. The locations of building meters can vary depending on your geographic region.
Submetering allows property owners and managers to fairly assign gas, water and electric costs to individual units within multifamily buildings, homeowners' associations, developments, RV Parks, and more. This process is designed to help landlords better understand how utility submetering works, the different types of utility assigned options, and how to choose an outsourced submetering company.
The difference between meters and submeters is their purpose and placement. The building meter is measuring energy for the utility and your utility bill (i.e., the utility meter on the side of your building). When you meter energy inside your building or facility, that breaks down your building or facilities’ energy into categories; that is submetering.
Billing and collection is another differentiating factor between master and submeters. The local power company gives the building management a monthly bill for usage recorded on the master meter. To recoup this expense, management then assesses each tenant or homeowner his fair share of the total utility expense according to the readings registered on their respective submeters. Energy conservation is encouraged with submetering as people become more aware of their consumption patterns as opposed to a flat rate cost structure for unlimited electricity usage.