The Mini Guide to Max Submetering

Types of Submetering

The aphorism "You can't manage what you don't measure" is particularly true in building operations. Submetering makes utility management more effective by measuring consumption by a specific service area or piece of equipment within a building and "behind" the utility's meter.

How does tracking utility usage make you more efficient? Because having that information is critical for breaking down utility costs by tenant or department, optimizing equipment and system performance, tracking carbon emissions, and reducing utility consumption. It provides visibility into how much, where, and when utilities are consumed, which is particularly difficult and important to optimizing operations in large and complex facilities.

Submetering comes in two main flavors: tenant and plant submetering.

Tenant submetering measures energy or other utility consumption, such as water or BTU, in tenant-specific service areas. This may include demand measurements.

Plant submetering measures the energy your plant uses to run the building(s). Submetered equipment may include BTU meters, electric meters, flow meters, gas meters, steam meters, and other equipment embedded in your plant management systems.

When Doesn't Submetering Make Sense?

Submetering is an amazing tool for assigning costs and identifying opportunities for efficiencies. That said, there are some rare cases in which submetering may not be cost-effective. 

Submetering has its own upfront and ongoing costs, which is why it's essential to look at costs vs. opportunities. For example, a decent estimate for one good electric meter and related CTs and voltage connections is ~$1200. Multiply that by the number of meters you need. Now add installation, commissioning, and ongoing verification to ensure your data is solid.

What might all that cost? The ROI on submetering is real, but every building is unique. We can't make a blanket statement about what YOUR building will need. We can tell you that the worse your current utility measuring system is, the shorter your ROI will be.

Here's how we think about the tradeoffs:

• When submetering to measure energy efficiency, what are the estimated energy savings compared to the submetering costs?
• When allocating costs and working with tenants, the accuracy of the submetering is critical. Do you have/can you afford revenue-grade meters? And are you willing to have them regularly validated?
• Do your budget and stakeholders allow you to start small and grow your system? When submetering to identify energy conservation measures, we recommend targeting the most critical process steps and then adding submetering as you learn more.