Your Guide to Energy Submetering for Multi- Tenant Commercial Properties

Introduction

Energy submetering has become an essential tool for multi-tenant commercial properties, offering unparalleled transparency and efficiency in energy management. By allocating energy costs based on individual tenant usage, submetering not only promotes accountability but also drives energy-saving behavior. For property owners and managers, it represents a key step toward optimizing operational costs and complying with increasing regulatory demands.

This article will explore what submetering is, the benefits and components of a scalable submetering solution, and how partnering with a turnkey provider like Sapient Industries can simplify the process and ensure success.

What is Submetering?

Submetering is the practice of installing meters to monitor energy usage at a more granular level than a master meter. Rather than measuring energy consumption for an entire building, submeters track usage for individual tenants, floors, or equipment.

Utilities Commonly Submetered

• Electricity: The most common utility submetered, helping allocate costs based on tenant-specific consumption.
• Water: Tracks water usage, which is especially useful for properties with high water demand, such as apartment complexes or hotels.
• Gas: Useful for properties where heating or cooking utilities are tenant-specific.
• HVAC Systems: Tracks heating and cooling energy usage, especially in multi-tenant office buildings or malls.

What kind of buildings are commonly submetered?

Submetering is common in a wide range of property types. Common examples include:

• Commercial Properties: Office buildings, retail malls, and coworking spaces often submeter utilities to ensure equitable energy cost allocation among tenants.
• Residential Properties: Apartment complexes and condominiums benefit from submetering by allowing tenants to pay only for the utilities they use.
• Industrial Facilities: Factories and warehouses use submetering to monitor equipment-specific energy consumption and optimize operational efficiency.
• Institutional Buildings: Universities, hospitals, and government buildings leverage submetering to allocate energy costs across departments or facilities.

The Benefits of Submetering in Multi-Tenant Properties

Cost Transparency

Submetering allows building owners to bill tenants directly for their energy consumption. This fosters fairness and reduces disputes over shared utility costs. Tenants are encouraged to adopt energy-conscious habits, resulting in reduced overall consumption.

Energy Efficiency

With granular energy usage data, property managers can identify inefficiencies and take corrective action. Tenants, too, are more likely to conserve energy when they see direct financial benefits from doing so.

Regulatory Compliance

Many jurisdictions now require energy reporting and adherence to stringent building codes. Submetering systems simplify compliance by providing detailed, tenant-specific energy usage reports.

Enhanced Property Value

Energy-efficient buildings are increasingly desirable due to their lower-cost base and greater resilience against adverse movements in energy prices. Submetering helps not only demonstrate commitment to sustainability, but more importantly to a higher quality building that is future proof and more financially profitable, making properties more attractive to tenants and investors alike.

Key Components of a Scalable and Resilient Submetering Solution

A successful submetering system relies on careful design and robust components. Below are the key elements to consider:

1. System Strategy and Design

Every property is unique, requiring a tailored submetering approach. This involves assessing tenant layouts, evaluating existing infrastructure, and planning for future scalability. For instance, a retrofit project in an older building may require special design considerations to integrate seamlessly with outdated systems.

2. Reliable Hardware

High-quality submeters are essential for accurate and reliable data collection. Different kinds of hardware are required for electricity, gas, and water metering, so it is critical to work with a partner that can provide best-in-class hardware solutions that are compatible with the overall networking and software system.

3. Networking and Connectivity

Secure and resilient communication networks ensure seamless data transmission from meters to energy management systems. Depending on the type of installation and the existing utility infrastructure of the building, wired or wireless options may have their own advantages and disadvantages.

4. Energy Management Software

Critically, you will need an intuitive software platform that transforms raw data into actionable insights, reporting capabilities, and an easy-to-use API that allows the data to be easily ingested into your property management system. A very common issue in submetering installations is a misalignment between meter hardware selection and desired functionality and automation. Oftentimes, during construction, contractors will specify analog submeters that are unable to communicate data remotely into an energy management system, which then requires ongoing staffing costs to manually collect data from the meters. It is important to consult with an expert turnkey submetering provider to ensure you are making the best decision at each step of the process so you can ensure a cost-effective and future-ready building after the project is completed.

Challenges in Implementing Submetering Solutions

While the benefits of submetering are clear, implementation can present challenges. Addressing these effectively is key to a successful project:

Retrofitting Older Buildings

Legacy infrastructure often complicates the installation of modern submetering systems. For example, outdated wiring or space constraints may require creative solutions.

Integration with Existing Systems

Compatibility with legacy Building Management Systems can be challenging, particularly in older properties.

Data Accuracy and Security

Low-quality submeters or insecure networks can lead to inaccurate data and vulnerabilities.

Cost Concerns

While submetering involves an upfront investment, the long-term cost savings often outweigh these initial expenses.

Sapient Industries addresses these challenges through tailored solutions, ensuring compatibility, accuracy, and a clear return on investment.

Why Choose a Turnkey Submetering Partner?

Simplified Process

A turnkey partner manages the entire project, from initial design to system commissioning. This eliminates the need to coordinate with multiple vendors and ensures a smooth process.

Comprehensive Services

Sapient Industries provides a full spectrum of services, including hardware supply, system strategy, networking, and software integration. Customers have the flexibility to choose specific services or opt for a fully managed deployment.

Proven Expertise

With extensive experience in large-scale projects, Sapient ensures that submetering systems are reliable, scalable, and tailored to meet specific needs.

Discover how Sapient Industries can simplify your submetering project and deliver long-term energy savings. Contact us for a consultation today.

Conclusion and Next Steps

Energy submetering is a powerful tool for optimizing energy management and increasing profitability in multi-tenant commercial properties. From promoting cost transparency and efficiency to enhancing property value and meeting regulatory requirements, the benefits are clear.

For building owners and managers, partnering with a turnkey provider like Sapient Industries ensures a seamless, hassle-free implementation. With expertise in system strategy, design, hardware, and software integration, Sapient delivers scalable and resilient solutions tailored to your property’s needs.

Contact Sapient Industries today to explore how we can help transform your property’s energy management strategy.