NY and NYC Local Submetering Topics
You can make a profit on the redistribution of electric in New York State.
Challenges commercial buildings face in New York state
A benefit of tenant submetering for New York building owners is that they can recoup utility costs as per the lease and profit on the redistribution of electricity costs.
- The billing methodology is defined by the lease.
- Depending on the tenant’s lease, there isn’t a cap on the amount of profit you can make on utilities as an owner.
Other advantages of submetering in New York (NY) and New York City (NYC):
- New York City has complicated leases, driving the need for submetering.
- Having a third party read and generate the bills for the tenants reduces litigation.
- New York has many complicated and cumbersome local laws that owners need to be aware of and manage.
- Many financial incentives require submetering data.
NYC Local Law 97
In 2024, New York City will enact Local Law 97 (LL97), which sets aggressive new carbon emissions limits for buildings within the 5 boroughs.
Fines for emissions that exceed these new caps will be levied annually, and the limits become significantly tighter in 2030. Approximately 80% of building owners will need to retrofit equipment, initiate energy efficiencies, and incentivize tenants to reduce usage if they are going to bring their buildings into compliance.
If you’re the owner or a tenant of a building or campus greater than 25,000 square feet, your costs will be greatly affected by how soon you begin preparing and implementing your energy efficiency plans.