Submetering can reduce costs and increase sustainability. Is it right for your building?
Property managers often look for ways to cut costs while implementing green building solutions. One of the most affordable ways to increase your building’s energy efficiency while reducing operating costs is submetering.
The U.S. Federal Energy Management Program found that submetering, when used with “a coherent, continuous commissioning program of benchmarking, analysis, and remediation can result in 15% to 45% savings” in energy use, submetering provider Triacta reported.
In Canada, submetering showed a 17% energy reduction for CanmetENERGY’s complex in Ontario over three years, according to Triacta.
What Is Submetering?
When a building implements submetering, the submetering provider measures the energy use of each individual unit and bills each tenant or resident based on their use. The local utility company still sends a single bill to the property owner.
Property owners can enlist a submetering company to install the equipment, read the meter remotely, issue a detailed report of the usage in each designated space, and send the bill to the property manager for the final payment.
Submetering companies like Carma Submetering and Billing Services in Ontario, Canada, provide submetering for:
- Natural gas
- Cooling and heating
You will be billed based on actual usage based on posted rates for your building’s distribution area.
Submetering allows property managers to bill tenants based on their actual usage, encouraging conservation. Property managers can also budget properly for shared space, such as building lobbies, public restrooms, cafeterias, fitness centers and amenities.
Why Submetering Can Save You More
Of course, most commercial building green solutions – from solar panels to electric vehicle charging stations – have upfront costs associated with installation. And eco-friendly building materials or building automation systems that save energy are often perceived as being more expensive than their non-green counterparts.
When you run the numbers, sustainable construction will save money long-term. It may lead to faster lease-ups, higher rents, and even tax incentives, all of which can increase net operating income (NOI), a key indicator in the success and profitability of a commercial property.
If you’re looking for a low-cost way to increase energy efficiency in your office building or multi-dwelling unit residential property, submetering could be the solution. A quick-and-easy retrofit project, the installation of smart meters and the use of a submetering provider can reduce operating costs substantially.
How Smart Meters Work
In British Columbia, Canada, Wyse Meter supports commercial property owners, condominium owners, multi-residential rental managers, and student housing providers with submetering solutions. Wyse offers turnkey solutions that include not just smart submetering, but EV charging and utility expense management solutions that are customizable.
Each suite, whether it’s an apartment, dorm, or office space, has its own meter to measure energy consumption. Wyse sends the bills directly to the tenants, giving customers full control of their energy budget and, typically, resulting in reduced energy use.
Giving tenants and lessees access to this data leads to a 30% or more reduction in energy use, according to Wyse.
In one project, Wyse installed smart meters in 4 multi-unit residential rental properties with 520 suites across all four buildings. The company installed smart meters in 124 of the units and tracked their energy use. Residents who were responsible for their own energy bills used 58% less electricity. Consumers have access to an online portal to view their energy use, billing history, and other details of their account.
In addition to the practical cost and energy savings, Wyse Meters estimated that the energy savings also saved 15,376 trees grown for 10 years.
Submetering in the Age of Hybrid Workspaces
In July 2022, a study by tech giant Cisco found that 89% of employees said they perceived their employers to be “supportive” of remote work, while 52.8% said they viewed their employer to be “very supportive.
Hybrid or remote work has already been shown to save employees money on commuting costs, lunches away from home, and office wardrobes. It also saves employers money, and submetering can amplify that savings.
Employers who support a hybrid workplace will use less electricity, water, and energy for heating and cooling than employees with a full-time, in-office staff. Companies with a hybrid workforce will seek out commercial properties that offer submetering to reduce their utility costs.
As the remote work and hybrid workplace trends continue to evolve, submetering can make it even more financially desirable to businesses. Property managers that offer submetering are likely to attract environmentally conscious tenants who will also appreciate the other green building features on the property.
Let Monster Commercial be your first stop to find all the going green building, energy management green building solutions you need for your next building project or retrofit. Start here.