There are many advantages to submetering versus direct metering with the utilities:
How do you attract customers with submetering?
Benefits for Residents
Advantage | Lower Utility Rates |
What will attract residents? | Energy cost savings |
How does it work? | A bulk rate can be lower than the direct residential rate paid when a new resident signs up with the utility. This applies to the other added fees in a utility bill as well. |
Benefits for Owners
Advantage | Common Area Costs | Aesthetics | Building Costs |
What will attract owners? | Recapture electric costs | Eliminate unsightly equipment and repurpose spaces to generate revenue | Reduce infrastructure costs associated with utility style metering |
How does it work? | If an owner submeters, they can submeter common area loads and pass some of those costs on. This is not easy to do when owners direct meter with the utility. | Eliminate large meter banks typically required by the utility. In vertical properties, it can free up space for other common purposes, such as storage, or rented. | In some cases, overall building costs can be lower when using submetering due to reduction in the typical infrastructure necessary to support utility style metering. |