Submetering systems can break down your energy consumption and costs by business area, by building system, or by tenant.
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Submetering provides several advantages for building owners. You can determine the exact consumption of each building area, and prioritize energy efficiency upgrades based on this information. Submetering can also be used for internal energy billing in buildings with tenants, ensuring they are charged based on actual consumption and not floor area.
Depending on where your building is located, submetering may be required for compliance with local codes. For example, New York City enacted Local Law 88 of 2009, which requires submetering in tenant spaces larger than 5,000 sq.ft. The law takes effect in 2025, and it applies for buildings with a floor area of over 25,000 sq.ft. Submetering can also help you meet regulations that impose building emission limits, since you can determine which areas and equipment have the highest carbon footprint.
Submetering may also be required as part of a green building certification or a local energy incentive program. The LEED BD+C Certification for new constructions is an example of this, where you can earn credits for implementing advanced energy and water metering.
By having a detailed breakdown of your building energy consumption, you can determine which areas or MEP systems represent the largest fraction of your monthly bills. This way you can prioritize energy upgrades, lowering operating costs and increasing the ROI of your property.
Using Tenant Submetering for Internal Energy Billing
Traditionally, building owners without submetering have used two methods when billing tenants for energy consumption: dividing total energy bills equally among tenants, or dividing bills based on the floor area occupied by each tenant.
Submetering makes tenants responsible for 100% of the energy they waste, but it also ensures they keep 100% of the energy savings they achieve. This creates an incentive to become efficient, which doesn’t exist when energy bills are split equally (per tenant or per square foot).
Many local governments and utility companies have incentive programs for energy efficiency measures. Many of these programs have predetermined incentive rates, which normally depend on the type of measure and equipment capacities. However, some incentives are paid based on verified energy savings.
For example, an incentive program that focuses on air conditioning efficiency may calculate payments per kilowatt of measured demand savings, or per kilowatt-hour of annual savings. In this case, you can easily demonstrate results by submetering your HVAC systems.
There are many green building certifications available for building owners, including LEED and ENERGY STAR. Submetering can help you qualify for these certifications – in fact, some rating systems have included energy and water metering as direct requirements.
Building-level energy and water metering are mandatory requirements under the LEED rating system:
The ENERGY STAR Certification does not address submetering directly, but you must prove that your building is among the top 25% most efficient of its type, nationwide. Submetering can be used to identify opportunity areas, and also to demonstrate performance after implementing energy-saving measures. When applying for the ENERGY STAR Certification for Buildings, you must use the EPA Portfolio Manager to submit energy consumption data.
Submetering can be used to analyze building emissions, since it provides a detailed breakdown of energy consumption. When building owners know their consumption by area or by system, they can also estimate the associated emissions.
Building emission laws normally establish limits based on property type and floor area, with a financial penalty for emissions over the respective limit. Using energy submetering, building owners can identify the main sources of emissions. This allows targeted investments that will cut emissions effectively.
Submetering can be used to analyze building emissions, since it provides a detailed breakdown of energy consumption. When building owners know their consumption by area or by system, they can also estimate the associated emissions.
Building emission laws normally establish limits based on property type and floor area, with a financial penalty for emissions over the respective limit. Using energy submetering, building owners can identify the main sources of emissions. This allows targeted investments that will cut emissions effectively.