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Sub-metering is the tracking of electricity in tenant or zones using individual sub meters. (Sub-meters are often located physically in an electrical closet or in the basement). Sub-meters are used to isolate electricity use so that occupants only pay for the electricity they use in their sub-metered space. The New York State Energy and Research Development Agency estimates that tenants use between 15% and 30% less electricity when paying for their own electricity via sub-metering.
Sub-metering benefits both building owners and tenants by providing an equitable method of charging tenants for the electricity, water, gas, steam, chilled water, or any type of utility they use in master-metered facilities. With sub-metering, tenants are financially incentivized to use less electricity because they pay directly for it, and thus see immediate savings from any conservation. Sub-metering reduces disputes, increases property value and income, and builds tenant goodwill. For building owners, it can also facilitate energy management because it’s easy to see how much electricity is used in certain zones and tenant spaces.