What is submetering and how does it work?

Submetering and billing – a key to fairer energy costs

In many multi-family buildings, electricity, water, or heating costs are still allocated uniformly among residents. This means that those who consume little pay as much as those who consume a lot. With Individual Metering and Billing (IMD), the distribution becomes fairer as each apartment's actual consumption is measured and billed individually.

IMD has become an increasingly common tool for property owners who want to reduce energy consumption, increase cost awareness, and create more transparent billing.

What does submetering and billing mean?

The principle is simple: each apartment or commercial space gets its own metering for, for example:

  • Electricity
  • Cold water
  • Hot water
  • Heating
  • Gas

Meter readings are collected automatically and then used as a basis for billing. Residents thus pay for their actual consumption instead of an estimated share of the property's total cost.

How does submetering work in practice?

Submetering typically consists of four parts:

1. Meters are installed

First, sub-meters are installed for the utilities to be measured. These can be electricity meters, water meters, or heat meters placed in each apartment.

2. Meter data is collected

The meters send their readings to a gateway or collection unit via, for example:

  • M-Bus
  • Wireless M-Bus
  • LoRA
  • Modbus

Data is collected automatically without anyone needing to read the meters manually.

3. Data is transferred to a higher-level system

The gateway forwards the meter readings to a system for energy management, property management, or billing. The information can be transferred via open interfaces and standardized communication protocols.

4. Billing is based on actual consumption

The meter readings are used as a basis for invoicing or rent statements. Each resident pays for their own consumption, which creates a clear link between behavior and cost.

What are the benefits of IMD?

Lower consumption

When residents see their own consumption, awareness of energy and water usage increases. Experience from many properties shows that consumption often decreases after the implementation of IMD.

Fair billing

Each household pays for what is actually used. This creates a fairer cost distribution among residents.

Better decision-making basis

The property owner receives detailed information about energy usage in the building and can more easily identify deviations, leaks, or inefficient installations.

Future-proofing

Digital meter data collection creates a foundation for future energy optimization, automation, and integration with other property systems.

What types of properties use submetering?

Submetering is currently used in, for example:

  • Housing Cooperatives
  • Rental Properties
  • Student Housing
  • Commercial Properties
  • Mixed-use properties with both residential and commercial units

Especially in new constructions, submetering is now a common part of a property's digital infrastructure.

The Importance of Open Systems

When installing an submetering-system, it's important to think long-term. Many older solutions are based on proprietary systems, making property owners dependent on a specific vendor.

By choosing open standards like M-Bus, Wireless M-Bus, and LoRA, greater flexibility is achieved. Property owners can more easily switch system providers, integrate new services, and develop their property without having to replace installed hardware.

Summary

Submetering makes it possible to measure and bill for electricity, water, gas and heating based on actual consumption. The result is a fairer cost distribution, lower resource usage, and better control over the property's energy data.

For property owners, submetering is not just a billing tool – it's also a crucial building block in the effort towards more energy-efficient and sustainable properties.

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What is submetering and how does it work?

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